Texas 2017 - 85th Regular

Texas House Bill HB15 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R14943 SMH-F
2	2	By: Bonnen of Brazoria H.B. No. 15
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. This Act may be cited as the Property Tax Payer
10	10	Empowerment Act of 2017.
11	11	SECTION 2. Section 5.07, Tax Code, is amended by adding
12	12	Subsection (f) to read as follows:
13	13	(f) The comptroller shall prescribe the form of the
14	14	worksheets to be used by the designated officer or employee of each
15	15	taxing unit in calculating the no new taxes tax rate and rollback
16	16	tax rate for the unit as required by Chapter 26. The form must be in
17	17	an electronic format and be capable of:
18	18	(1) being completed electronically;
19	19	(2) performing calculations automatically based on
20	20	the data entered by the designated officer or employee;
21	21	(3) being certified by the designated officer or
22	22	employee after completion; and
23	23	(4) being submitted electronically to the comptroller
24	24	on completion and certification.
25	25	SECTION 3. Section 5.091, Tax Code, is amended to read as
26	26	follows:
27	27	Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
28	28	comptroller shall prepare a list that includes the total tax rate
29	29	imposed by each taxing unit in this state[, other than a school
30	30	district, if the tax rate is reported to the comptroller,] for the
31	31	year [preceding the year] in which the list is prepared. The
32	32	comptroller shall list the tax rates alphabetically according to:
33	33	(1) the county or counties in which each taxing unit is
34	34	located; and
35	35	(2) the name of each taxing unit [in descending
36	36	order].
37	37	(b) Not later than January 1 [December 31] of the following
38	38	[each] year, the comptroller shall publish on the comptroller's
39	39	Internet website the list required by Subsection (a).
40	40	SECTION 4. Chapter 5, Tax Code, is amended by adding Section
41	41	5.092 to read as follows:
42	42	Sec. 5.092. STATEWIDE DATABASE OF OTHER
43	43	PROPERTY-TAX-RELATED INFORMATION. (a) The comptroller shall
44	44	create and maintain a property tax database that:
45	45	(1) contains information that is provided by
46	46	designated officers or employees of taxing units in the manner
47	47	required by the comptroller;
48	48	(2) is continuously updated as preliminary and revised
49	49	data become available to and are provided by the designated
50	50	officers or employees of taxing units;
51	51	(3) is accessible to the public; and
52	52	(4) is searchable by property address.
53	53	(b) The database must include, with respect to each property
54	54	listed on an appraisal roll:
55	55	(1) the property's identification number;
56	56	(2) the property's market value;
57	57	(3) the property's taxable value;
58	58	(4) the name of each taxing unit in which the property
59	59	is located;
60	60	(5) for each taxing unit other than a school district
61	61	in which the property is located:
62	62	(A) the no new taxes tax rate; and
63	63	(B) the rollback tax rate;
64	64	(6) for each school district in which the property is
65	65	located:
66	66	(A) the rate to maintain the same amount of state
67	67	and local revenue per weighted student that the district received
68	68	in the school year beginning in the preceding tax year; and
69	69	(B) the rollback tax rate;
70	70	(7) the tax rate proposed by the governing body of each
71	71	taxing unit in which the property is located;
72	72	(8) for each taxing unit other than a school district
73	73	in which the property is located, the taxes that would be imposed on
74	74	the property if the unit adopted a tax rate equal to:
75	75	(A) the no new taxes tax rate; and
76	76	(B) the proposed tax rate;
77	77	(9) for each school district in which the property is
78	78	located, the taxes that would be imposed on the property if the unit
79	79	adopted a tax rate equal to:
80	80	(A) the rate to maintain the same amount of state
81	81	and local revenue per weighted student that the district received
82	82	in the school year beginning in the preceding tax year; and
83	83	(B) the proposed tax rate;
84	84	(10) for each taxing unit other than a school district
85	85	in which the property is located, the difference between the amount
86	86	calculated under Subdivision (8)(A) and the amount calculated under
87	87	Subdivision (8)(B);
88	88	(11) for each school district in which the property is
89	89	located, the difference between the amount calculated under
90	90	Subdivision (9)(A) and the amount calculated under Subdivision
91	91	(9)(B);
92	92	(12) the date and location of each public hearing, if
93	93	applicable, on the proposed tax rate to be held by the governing
94	94	body of each taxing unit in which the property is located; and
95	95	(13) the date and location of the public meeting in
96	96	which the tax rate will be adopted to be held by the governing body
97	97	of each taxing unit in which the property is located.
98	98	(c) The database must provide a link to the information
99	99	posted under Section 26.17 on the Internet website of each taxing
100	100	unit in which the property is located.
101	101	(d) The officer or employee designated by the governing body
102	102	of each taxing unit to calculate the no new taxes tax rate and the
103	103	rollback tax rate for the unit must electronically submit to the
104	104	comptroller:
105	105	(1) the information described by Subsection (b) as the
106	106	information becomes available; and
107	107	(2) the worksheets prepared under Section 26.04(d-1)
108	108	at the same time the officer or employee submits the tax rates to
109	109	the governing body of the unit under Section 26.04(e).
110	110	(e) The comptroller shall deliver by e-mail to the
111	111	designated officer or employee confirmation of receipt of the
112	112	worksheets submitted under Subsection (d)(2). The comptroller
113	113	shall incorporate the worksheets into the database and make them
114	114	available to the public not later than the third day after the date
115	115	the comptroller receives them.
116	116	SECTION 5. Sections 25.19(b) and (i), Tax Code, are amended
117	117	to read as follows:
118	118	(b) The chief appraiser shall separate real from personal
119	119	property and include in the notice for each:
120	120	(1) a list of the taxing units in which the property is
121	121	taxable;
122	122	(2) the appraised value of the property in the
123	123	preceding year;
124	124	(3) the taxable value of the property in the preceding
125	125	year for each taxing unit taxing the property;
126	126	(4) the appraised value of the property for the
127	127	current year, the kind and amount of each exemption and partial
128	128	exemption, if any, approved for the property for the current year
129	129	and for the preceding year, and, if an exemption or partial
130	130	exemption that was approved for the preceding year was canceled or
131	131	reduced for the current year, the amount of the exemption or partial
132	132	exemption canceled or reduced;
133	133	(5) [if the appraised value is greater than it was in
134	134	the preceding year, the amount of tax that would be imposed on the
135	135	property on the basis of the tax rate for the preceding year;
136	136	[(6)] in italic typeface, the following statement:
137	137	"The Texas Legislature does not set the amount of your local taxes.
138	138	Your property tax burden is decided by your locally elected
139	139	officials, and all inquiries concerning your taxes should be
140	140	directed to those officials";
141	141	(6) [(7)] a detailed explanation of the time and
142	142	procedure for protesting the value;
143	143	(7) [(8)] the date and place the appraisal review
144	144	board will begin hearing protests; and
145	145	(8) [(9)] a brief explanation that the governing body
146	146	of each taxing unit decides whether or not taxes on the property
147	147	will increase and the appraisal district only determines the value
148	148	of the property.
149	149	(i) Delivery with a notice required by Subsection (a) or (g)
150	150	of a copy of the pamphlet published by the comptroller under Section
151	151	5.06 or a copy of the notice published by the chief appraiser under
152	152	Section 41.70 is sufficient to comply with the requirement that the
153	153	notice include the information specified by Subsection (b)(6)
154	154	[(b)(7)] or (g)(3), as applicable.
155	155	SECTION 6. Section 26.012(7), Tax Code, is amended to read
156	156	as follows:
157	157	(7) "Debt" means a bond, warrant, certificate of
158	158	obligation, or other evidence of indebtedness owed by a taxing unit
159	159	that has been approved at an election and is payable solely from
160	160	property taxes in installments over a period of more than one year,
161	161	not budgeted for payment from maintenance and operations funds, and
162	162	secured by a pledge of property taxes, or a payment made under
163	163	contract to secure indebtedness of a similar nature issued by
164	164	another political subdivision on behalf of the taxing unit.
165	165	SECTION 7. Section 26.012(9), Tax Code, is redesignated as
166	166	Section 26.012(18), Tax Code, and amended to read as follows:
167	167	(18) "No new taxes [(9) "Effective] maintenance and
168	168	operations rate" means a rate expressed in dollars per $100 of
169	169	taxable value and calculated according to the following formula:
170	170	NO NEW TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS
171	171	RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
172	172	YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
173	173	NEW PROPERTY VALUE)
174	174	SECTION 8. The heading to Section 26.04, Tax Code, is
175	175	amended to read as follows:
176	176	Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; NO NEW
177	177	TAXES [EFFECTIVE] AND ROLLBACK TAX RATES.
178	178	SECTION 9. Section 26.04, Tax Code, is amended by amending
179	179	Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and (j) and
180	180	adding Subsections (c-1), (d-1), (d-2), (d-3), (d-4), (e-2), and
181	181	(h-1) to read as follows:
182	182	(b) The assessor shall submit the appraisal roll for the
183	183	unit showing the total appraised, assessed, and taxable values of
184	184	all property and the total taxable value of new property to the
185	185	governing body of the unit by August 1 or as soon thereafter as
186	186	practicable. By August 1 or as soon thereafter as practicable, the
187	187	taxing unit's collector shall certify [an estimate of] the
188	188	anticipated collection rate for the current year to the governing
189	189	body. If the collector certified an anticipated collection rate in
190	190	the preceding year and the actual collection rate in that year
191	191	exceeded the anticipated rate, the collector shall also certify the
192	192	amount of debt taxes collected in excess of the anticipated amount
193	193	in the preceding year.
194	194	(c) An officer or employee designated by the governing body
195	195	shall calculate the no new taxes [effective] tax rate and the
196	196	rollback tax rate for the unit, where:
197	197	(1) "No new taxes ["Effective] tax rate" means a rate
198	198	expressed in dollars per $100 of taxable value calculated according
199	199	to the following formula:
200	200	NO NEW TAXES [EFFECTIVE] TAX RATE = (LAST YEAR'S LEVY -
201	201	LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
202	202	PROPERTY VALUE)
203	203	; and
204	204	(2) "Rollback tax rate" means a rate expressed in
205	205	dollars per $100 of taxable value calculated according to the
206	206	following formula:
207	207	ROLLBACK TAX RATE = (NO NEW TAXES [EFFECTIVE]
208	208	MAINTENANCE AND OPERATIONS RATE x 1.04 [1.08]) +
209	209	CURRENT DEBT RATE
210	210	(c-1) Notwithstanding any other provision of this section,
211	211	the governing body may direct the designated officer or employee to
212	212	substitute "1.08" for "1.04" in the calculation of the rollback tax
213	213	rate if any part of the taxing unit is located in an area declared a
214	214	disaster area during the current tax year by the governor or by the
215	215	president of the United States.
216	216	(d) The no new taxes [effective] tax rate for a county is the
217	217	sum of the no new taxes [effective] tax rates calculated for each
218	218	type of tax the county levies, and the rollback tax rate for a
219	219	county is the sum of the rollback tax rates calculated for each type
220	220	of tax the county levies.
221	221	(d-1) The designated officer or employee shall use the
222	222	worksheet forms prescribed by the comptroller under Section 5.07(f)
223	223	in calculating the no new taxes tax rate and the rollback tax rate.
224	224	(d-2) The designated officer or employee shall submit the
225	225	worksheets to:
226	226	(1) the chief appraiser of the appraisal district in
227	227	which the taxing unit is located; and
228	228	(2) the chief financial officer or the auditor for the
229	229	taxing unit.
230	230	(d-3) The designated officer or employee may not submit the
231	231	no new taxes tax rate and the rollback tax rate to the governing
232	232	body of the taxing unit and the governing body of the unit may not
233	233	adopt a tax rate until:
234	234	(1) the chief appraiser submits to the governing body
235	235	of the unit a written certification that the values used in the
236	236	calculations are the same as the values shown in the unit's
237	237	appraisal roll; and
238	238	(2) the chief financial officer or the auditor for the
239	239	unit submits to the governing body of the unit a written
240	240	certification that the rollback tax rate has been calculated
241	241	correctly.
242	242	(d-4) The comptroller shall adopt rules governing the form
243	243	of the certifications required by Subsection (d-3) and the manner
244	244	in which they are required to be submitted.
245	245	(e) By August 7 or as soon thereafter as practicable, the
246	246	designated officer or employee shall submit the rates to the
247	247	governing body. The designated officer or employee [He] shall
248	248	deliver by mail to each property owner in the unit or publish in a
249	249	newspaper in the form prescribed by the comptroller:
250	250	(1) the no new taxes [effective] tax rate, the
251	251	rollback tax rate, and an explanation of how they were calculated;
252	252	(2) the estimated amount of interest and sinking fund
253	253	balances and the estimated amount of maintenance and operation or
254	254	general fund balances remaining at the end of the current fiscal
255	255	year that are not encumbered with or by corresponding existing debt
256	256	obligation;
257	257	(3) a schedule of the unit's debt obligations showing:
258	258	(A) the amount of principal and interest that
259	259	will be paid to service the unit's debts in the next year from
260	260	property tax revenue, including payments of lawfully incurred
261	261	contractual obligations providing security for the payment of the
262	262	principal of and interest on bonds and other evidences of
263	263	indebtedness issued on behalf of the unit by another political
264	264	subdivision and, if the unit is created under Section 52, Article
265	265	III, or Section 59, Article XVI, Texas Constitution, payments on
266	266	debts that the unit anticipates to incur in the next calendar year;
267	267	(B) the amount by which taxes imposed for debt
268	268	are to be increased because of the unit's anticipated collection
269	269	rate; and
270	270	(C) the total of the amounts listed in Paragraphs
271	271	(A)-(B), less any amount collected in excess of the previous year's
272	272	anticipated collections certified as provided in Subsection (b);
273	273	(4) the amount of additional sales and use tax revenue
274	274	anticipated in calculations under Section 26.041;
275	275	(5) a statement that the adoption of a tax rate equal
276	276	to the no new taxes [effective] tax rate would result in an increase
277	277	or decrease, as applicable, in the amount of taxes imposed by the
278	278	unit as compared to last year's levy, and the amount of the increase
279	279	or decrease;
280	280	(6) in the year that a taxing unit calculates an
281	281	adjustment under Subsection (i) or (j), a schedule that includes
282	282	the following elements:
283	283	(A) the name of the unit discontinuing the
284	284	department, function, or activity;
285	285	(B) the amount of property tax revenue spent by
286	286	the unit listed under Paragraph (A) to operate the discontinued
287	287	department, function, or activity in the 12 months preceding the
288	288	month in which the calculations required by this chapter are made;
289	289	and
290	290	(C) the name of the unit that operates a distinct
291	291	department, function, or activity in all or a majority of the
292	292	territory of a taxing unit that has discontinued operating the
293	293	distinct department, function, or activity; and
294	294	(7) in the year following the year in which a taxing
295	295	unit raised its rollback tax rate as required by Subsection (j), a
296	296	schedule that includes the following elements:
297	297	(A) the amount of property tax revenue spent by
298	298	the unit to operate the department, function, or activity for which
299	299	the taxing unit raised the rollback tax rate as required by
300	300	Subsection (j) for the 12 months preceding the month in which the
301	301	calculations required by this chapter are made; and
302	302	(B) the amount published by the unit in the
303	303	preceding tax year under Subdivision (6)(B).
304	304	(e-1) The tax rate certification requirements imposed by
305	305	Subsections (d-2) and (d-3) and the notice requirements imposed by
306	306	Subsections (e)(1)-(6) do not apply to a school district.
307	307	(e-2) By August 7 or as soon thereafter as practicable, the
308	308	chief appraiser of the appraisal district in which the property is
309	309	located shall deliver by regular mail or e-mail to each property
310	310	owner a notice that the estimated amount of taxes to be imposed on
311	311	the owner's property by each taxing unit in which the property is
312	312	located may be found in the property tax database maintained by the
313	313	comptroller under Section 5.092. The notice must include:
314	314	(1) the address of the Internet website at which the
315	315	information may be found;
316	316	(2) a statement that the property owner may request a
317	317	written copy of the information from the assessor for each taxing
318	318	unit in which the property is located; and
319	319	(3) the address and telephone number of each assessor
320	320	from whom the written copy may be requested.
321	321	(f) If as a result of consolidation of taxing units a taxing
322	322	unit includes territory that was in two or more taxing units in the
323	323	preceding year, the amount of taxes imposed in each in the preceding
324	324	year is combined for purposes of calculating the no new taxes
325	325	[effective] and rollback tax rates under this section.
326	326	(g) A person who owns taxable property is entitled to an
327	327	injunction prohibiting the taxing unit in which the property is
328	328	taxable from adopting a tax rate if the assessor or designated
329	329	officer or employee of the unit, as applicable, has not complied
330	330	with the computation or publication requirements of this section or
331	331	Section 5.092(d) [and the failure to comply was not in good faith].
332	332	(h-1) Notwithstanding Subsection (h), the assessor may not
333	333	certify an anticipated collection rate under Subsection (b) that is
334	334	lower than the lowest actual collection rate in the preceding three
335	335	years.
336	336	(i) This subsection applies to a taxing unit that has agreed
337	337	by written contract to transfer a distinct department, function, or
338	338	activity to another taxing unit and discontinues operating that
339	339	distinct department, function, or activity if the operation of that
340	340	department, function, or activity in all or a majority of the
341	341	territory of the taxing unit is continued by another existing
342	342	taxing unit or by a new taxing unit. The rollback tax rate of a
343	343	taxing unit to which this subsection applies in the first tax year
344	344	in which a budget is adopted that does not allocate revenue to the
345	345	discontinued department, function, or activity is calculated as
346	346	otherwise provided by this section, except that last year's levy
347	347	used to calculate the no new taxes [effective] maintenance and
348	348	operations rate of the unit is reduced by the amount of maintenance
349	349	and operations tax revenue spent by the taxing unit to operate the
350	350	department, function, or activity for the 12 months preceding the
351	351	month in which the calculations required by this chapter are made
352	352	and in which the unit operated the discontinued department,
353	353	function, or activity. If the unit did not operate that department,
354	354	function, or activity for the full 12 months preceding the month in
355	355	which the calculations required by this chapter are made, the unit
356	356	shall reduce last year's levy used for calculating the no new taxes
357	357	[effective] maintenance and operations rate of the unit by the
358	358	amount of the revenue spent in the last full fiscal year in which
359	359	the unit operated the discontinued department, function, or
360	360	activity.
361	361	(j) This subsection applies to a taxing unit that had agreed
362	362	by written contract to accept the transfer of a distinct
363	363	department, function, or activity from another taxing unit and
364	364	operates a distinct department, function, or activity if the
365	365	operation of a substantially similar department, function, or
366	366	activity in all or a majority of the territory of the taxing unit
367	367	has been discontinued by another taxing unit, including a dissolved
368	368	taxing unit. The rollback tax rate of a taxing unit to which this
369	369	subsection applies in the first tax year after the other taxing unit
370	370	discontinued the substantially similar department, function, or
371	371	activity in which a budget is adopted that allocates revenue to the
372	372	department, function, or activity is calculated as otherwise
373	373	provided by this section, except that last year's levy used to
374	374	calculate the no new taxes [effective] maintenance and operations
375	375	rate of the unit is increased by the amount of maintenance and
376	376	operations tax revenue spent by the taxing unit that discontinued
377	377	operating the substantially similar department, function, or
378	378	activity to operate that department, function, or activity for the
379	379	12 months preceding the month in which the calculations required by
380	380	this chapter are made and in which the unit operated the
381	381	discontinued department, function, or activity. If the unit did
382	382	not operate the discontinued department, function, or activity for
383	383	the full 12 months preceding the month in which the calculations
384	384	required by this chapter are made, the unit may increase last year's
385	385	levy used to calculate the no new taxes [effective] maintenance and
386	386	operations rate by an amount not to exceed the amount of property
387	387	tax revenue spent by the discontinuing unit to operate the
388	388	discontinued department, function, or activity in the last full
389	389	fiscal year in which the discontinuing unit operated the
390	390	department, function, or activity.
391	391	SECTION 10. Section 26.041, Tax Code, is amended by
392	392	amending Subsections (a), (b), (c), (e), (g), and (h) and adding
393	393	Subsection (c-1) to read as follows:
394	394	(a) In the first year in which an additional sales and use
395	395	tax is required to be collected, the no new taxes [effective] tax
396	396	rate and rollback tax rate for the unit are calculated according to
397	397	the following formulas:
398	398	NO NEW TAXES [EFFECTIVE] TAX RATE = [(LAST YEAR'S
399	399	LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
400	400	PROPERTY VALUE)] - SALES TAX GAIN RATE
401	401	and
402	402	ROLLBACK TAX RATE = (NO NEW TAXES [EFFECTIVE]
403	403	MAINTENANCE AND OPERATIONS RATE x 1.04 [1.08]) +
404	404	CURRENT DEBT RATE - SALES TAX GAIN RATE
405	405	where "sales tax gain rate" means a number expressed in dollars per
406	406	$100 of taxable value, calculated by dividing the revenue that will
407	407	be generated by the additional sales and use tax in the following
408	408	year as calculated under Subsection (d) [of this section] by the
409	409	current total value.
410	410	(b) Except as provided by Subsections (a) and (c) [of this
411	411	section], in a year in which a taxing unit imposes an additional
412	412	sales and use tax the rollback tax rate for the unit is calculated
413	413	according to the following formula, regardless of whether the unit
414	414	levied a property tax in the preceding year:
415	415	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
416	416	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
417	417	TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE
418	418	- SALES TAX REVENUE RATE)
419	419	where "last year's maintenance and operations expense" means the
420	420	amount spent for maintenance and operations from property tax and
421	421	additional sales and use tax revenues in the preceding year, and
422	422	"sales tax revenue rate" means a number expressed in dollars per
423	423	$100 of taxable value, calculated by dividing the revenue that will
424	424	be generated by the additional sales and use tax in the current year
425	425	as calculated under Subsection (d) [of this section] by the current
426	426	total value.
427	427	(c) In a year in which a taxing unit that has been imposing
428	428	an additional sales and use tax ceases to impose an additional sales
429	429	and use tax the no new taxes [effective] tax rate and rollback tax
430	430	rate for the unit are calculated according to the following
431	431	formulas:
432	432	NO NEW TAXES [EFFECTIVE] TAX RATE = [(LAST YEAR'S
433	433	LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
434	434	PROPERTY VALUE)] + SALES TAX LOSS RATE
435	435	and
436	436	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
437	437	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
438	438	TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
439	439	where "sales tax loss rate" means a number expressed in dollars per
440	440	$100 of taxable value, calculated by dividing the amount of sales
441	441	and use tax revenue generated in the last four quarters for which
442	442	the information is available by the current total value and "last
443	443	year's maintenance and operations expense" means the amount spent
444	444	for maintenance and operations from property tax and additional
445	445	sales and use tax revenues in the preceding year.
446	446	(c-1) Notwithstanding any other provision of this section,
447	447	the governing body may direct the designated officer or employee to
448	448	substitute "1.08" for "1.04" in the calculation of the rollback tax
449	449	rate if any part of the taxing unit is located in an area declared a
450	450	disaster area during the current tax year by the governor or by the
451	451	president of the United States.
452	452	(e) If a city that imposes an additional sales and use tax
453	453	receives payments under the terms of a contract executed before
454	454	January 1, 1986, in which the city agrees not to annex certain
455	455	property or a certain area and the owners or lessees of the property
456	456	or of property in the area agree to pay at least annually to the city
457	457	an amount determined by reference to all or a percentage of the
458	458	property tax rate of the city and all or a part of the value of the
459	459	property subject to the agreement or included in the area subject to
460	460	the agreement, the governing body, by order adopted by a majority
461	461	vote of the governing body, may direct the designated officer or
462	462	employee to add to the no new taxes [effective] and rollback tax
463	463	rates the amount that, when applied to the total taxable value
464	464	submitted to the governing body, would produce an amount of taxes
465	465	equal to the difference between the total amount of payments for the
466	466	tax year under contracts described by this subsection under the
467	467	rollback tax rate calculated under this section and the total
468	468	amount of payments for the tax year that would have been obligated
469	469	to the city if the city had not adopted an additional sales and use
470	470	tax.
471	471	(g) If the rate of the additional sales and use tax is
472	472	increased, the designated officer or employee shall make two
473	473	projections, in the manner provided by Subsection (d) [of this
474	474	section], of the revenue generated by the additional sales and use
475	475	tax in the following year. The first projection must take into
476	476	account the increase and the second projection must not take into
477	477	account the increase. The officer or employee shall then subtract
478	478	the amount of the result of the second projection from the amount of
479	479	the result of the first projection to determine the revenue
480	480	generated as a result of the increase in the additional sales and
481	481	use tax. In the first year in which an additional sales and use tax
482	482	is increased, the no new taxes [effective] tax rate for the unit is
483	483	the no new taxes [effective] tax rate before the increase minus a
484	484	number the numerator of which is the revenue generated as a result
485	485	of the increase in the additional sales and use tax, as determined
486	486	under this subsection, and the denominator of which is the current
487	487	total value minus the new property value.
488	488	(h) If the rate of the additional sales and use tax is
489	489	decreased, the designated officer or employee shall make two
490	490	projections, in the manner provided by Subsection (d) [of this
491	491	section], of the revenue generated by the additional sales and use
492	492	tax in the following year. The first projection must take into
493	493	account the decrease and the second projection must not take into
494	494	account the decrease. The officer or employee shall then subtract
495	495	the amount of the result of the first projection from the amount of
496	496	the result of the second projection to determine the revenue lost as
497	497	a result of the decrease in the additional sales and use tax. In the
498	498	first year in which an additional sales and use tax is decreased,
499	499	the no new taxes [effective] tax rate for the unit is the no new
500	500	taxes [effective] tax rate before the decrease plus a number the
501	501	numerator of which is the revenue lost as a result of the decrease
502	502	in the additional sales and use tax, as determined under this
503	503	subsection, and the denominator of which is the current total value
504	504	minus the new property value.
505	505	SECTION 11. The heading to Section 26.043, Tax Code, is
506	506	amended to read as follows:
507	507	Sec. 26.043. ROLLBACK AND NO NEW TAXES [EFFECTIVE] TAX
508	508	RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
509	509	SECTION 12. Sections 26.043(a) and (b), Tax Code, are
510	510	amended to read as follows:
511	511	(a) In the tax year in which a city has set an election on
512	512	the question of whether to impose a local sales and use tax under
513	513	Subchapter H, Chapter 453, Transportation Code, the officer or
514	514	employee designated to make the calculations provided by Section
515	515	26.04 may not make those calculations until the outcome of the
516	516	election is determined. If the election is determined in favor of
517	517	the imposition of the tax, the representative shall subtract from
518	518	the city's rollback and no new taxes [effective] tax rates the
519	519	amount that, if applied to the city's current total value, would
520	520	impose an amount equal to the amount of property taxes budgeted in
521	521	the current tax year to pay for expenses related to mass transit
522	522	services.
523	523	(b) In a tax year to which this section applies, a reference
524	524	in this chapter to the city's no new taxes [effective] or rollback
525	525	tax rate refers to that rate as adjusted under this section.
526	526	SECTION 13. The heading to Section 26.044, Tax Code, is
527	527	amended to read as follows:
528	528	Sec. 26.044. NO NEW TAXES [EFFECTIVE] TAX RATE TO PAY FOR
529	529	STATE CRIMINAL JUSTICE MANDATE.
530	530	SECTION 14. Sections 26.044(a), (b), and (c), Tax Code, are
531	531	amended to read as follows:
532	532	(a) The first time that a county adopts a tax rate after
533	533	September 1, 1991, in which the state criminal justice mandate
534	534	applies to the county, the no new taxes [effective] maintenance and
535	535	operation rate for the county is increased by the rate calculated
536	536	according to the following formula:
537	537	(State Criminal Justice Mandate) / (Current Total
538	538	Value - New Property Value)
539	539	(b) In the second and subsequent years that a county adopts
540	540	a tax rate, if the amount spent by the county for the state criminal
541	541	justice mandate increased over the previous year, the no new taxes
542	542	[effective] maintenance and operation rate for the county is
543	543	increased by the rate calculated according to the following
544	544	formula:
545	545	(This Year's State Criminal Justice Mandate - Previous
546	546	Year's State Criminal Justice Mandate) / (Current
547	547	Total Value - New Property Value)
548	548	(c) The county shall include a notice of the increase in the
549	549	no new taxes [effective] maintenance and operation rate provided by
550	550	this section, including a description and amount of the state
551	551	criminal justice mandate, in the information published under
552	552	Section 26.04(e) and Section 26.06(b) [of this code].
553	553	SECTION 15. Sections 26.0441(a), (b), and (c), Tax Code,
554	554	are amended to read as follows:
555	555	(a) In the first tax year in which a taxing unit adopts a tax
556	556	rate after January 1, 2000, and in which the enhanced minimum
557	557	eligibility standards for indigent health care established under
558	558	Section 61.006, Health and Safety Code, apply to the taxing unit,
559	559	the no new taxes [effective] maintenance and operations rate for
560	560	the taxing unit is increased by the rate computed according to the
561	561	following formula:
562	562	Amount of Increase = Enhanced Indigent Health Care
563	563	Expenditures / (Current Total Value - New Property
564	564	Value)
565	565	(b) In each subsequent tax year, if the taxing unit's
566	566	enhanced indigent health care expenses exceed the amount of those
567	567	expenses for the preceding year, the no new taxes [effective]
568	568	maintenance and operations rate for the taxing unit is increased by
569	569	the rate computed according to the following formula:
570	570	Amount of Increase = (Current Tax Year's Enhanced
571	571	Indigent Health Care Expenditures - Preceding Tax
572	572	Year's Indigent Health Care Expenditures) / (Current
573	573	Total Value - New Property Value)
574	574	(c) The taxing unit shall include a notice of the increase
575	575	in its no new taxes [effective] maintenance and operations rate
576	576	provided by this section, including a brief description and the
577	577	amount of the enhanced indigent health care expenditures, in the
578	578	information published under Section 26.04(e) and, if applicable,
579	579	Section 26.06(b).
580	580	SECTION 16. Section 26.05, Tax Code, is amended by amending
581	581	Subsections (b), (c), (d), (e), and (g) and adding Subsections
582	582	(d-1) and (d-2) to read as follows:
583	583	(b) A taxing unit may not impose property taxes in any year
584	584	until the governing body has adopted a tax rate for that year, and
585	585	the annual tax rate must be set by ordinance, resolution, or order,
586	586	depending on the method prescribed by law for adoption of a law by
587	587	the governing body. The vote on the ordinance, resolution, or order
588	588	setting the tax rate must be separate from the vote adopting the
589	589	budget. For a taxing unit other than a school district, the vote on
590	590	the ordinance, resolution, or order setting a tax rate that exceeds
591	591	the no new taxes [effective] tax rate must be a record vote, and at
592	592	least 60 percent of the members of the governing body must vote in
593	593	favor of the ordinance, resolution, or order. For a school
594	594	district, the vote on the ordinance, resolution, or order setting a
595	595	tax rate that exceeds the sum of the no new taxes [effective]
596	596	maintenance and operations tax rate of the district as determined
597	597	under Section 26.08(i) and the district's current debt rate must be
598	598	a record vote, and at least 60 percent of the members of the
599	599	governing body must vote in favor of the ordinance, resolution, or
600	600	order. A motion to adopt an ordinance, resolution, or order setting
601	601	a tax rate that exceeds the no new taxes [effective] tax rate must
602	602	be made in the following form: "I move that the property tax rate be
603	603	increased by the adoption of a tax rate of (specify tax rate), which
604	604	is effectively a (insert percentage by which the proposed tax rate
605	605	exceeds the no new taxes [effective] tax rate) percent increase in
606	606	the tax rate." If the ordinance, resolution, or order sets a tax
607	607	rate that, if applied to the total taxable value, will impose an
608	608	amount of taxes to fund maintenance and operation expenditures of
609	609	the taxing unit that exceeds the amount of taxes imposed for that
610	610	purpose in the preceding year, the taxing unit must:
611	611	(1) include in the ordinance, resolution, or order in
612	612	type larger than the type used in any other portion of the document:
613	613	(A) the following statement: "THIS TAX RATE WILL
614	614	RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
615	615	TAX RATE."; and
616	616	(B) if the tax rate exceeds the no new taxes
617	617	[effective] maintenance and operations rate, the following
618	618	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
619	619	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO NEW TAXES
620	620	[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
621	621	TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
622	622	APPROXIMATELY $(Insert amount)."; and
623	623	(2) include on the home page of the [any] Internet
624	624	website operated by the unit:
625	625	(A) the following statement: "(Insert name of
626	626	unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
627	627	AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
628	628	(B) if the tax rate exceeds the no new taxes
629	629	[effective] maintenance and operations rate, the following
630	630	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
631	631	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO NEW TAXES
632	632	[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
633	633	TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
634	634	APPROXIMATELY $(Insert amount)."
635	635	(c) If the governing body of a taxing unit does not adopt a
636	636	tax rate before the date required by Subsection (a), the tax rate
637	637	for the taxing unit for that tax year is the lower of the no new
638	638	taxes [effective] tax rate calculated for that tax year or the tax
639	639	rate adopted by the taxing unit for the preceding tax year. A tax
640	640	rate established by this subsection is treated as an adopted tax
641	641	rate. Before the fifth day after the establishment of a tax rate by
642	642	this subsection, the governing body of the taxing unit must ratify
643	643	the applicable tax rate in the manner required by Subsection (b).
644	644	(d) The governing body of a taxing unit other than a school
645	645	district may not adopt a tax rate that exceeds the lower of the
646	646	rollback tax rate or the no new taxes [effective] tax rate
647	647	calculated as provided by this chapter until the governing body has
648	648	held two public hearings on the proposed tax rate and has otherwise
649	649	complied with Section 26.06 and Section 26.065. The governing body
650	650	of a taxing unit shall reduce a tax rate set by law or by vote of the
651	651	electorate to the lower of the rollback tax rate or the no new taxes
652	652	[effective] tax rate and may not adopt a higher rate unless it first
653	653	complies with Section 26.06.
654	654	(d-1) The governing body of a taxing unit may not hold a
655	655	public hearing on a proposed tax rate or a public meeting to adopt a
656	656	tax rate until the 14th day after the date the officer or employee
657	657	designated by the governing body of the unit to calculate the no new
658	658	taxes tax rate and the rollback tax rate for the unit electronically
659	659	submits to the comptroller the information described by Section
660	660	5.092(d).
661	661	(d-2) Notwithstanding Subsection (a), the governing body of
662	662	a taxing unit other than a school district may not adopt a tax rate
663	663	until:
664	664	(1) the comptroller has included the information for
665	665	the current tax year specified by Section 5.092 in the
666	666	comptroller's property tax database; and
667	667	(2) the chief appraiser of the appraisal district in
668	668	which the taxing unit participates has delivered the notice
669	669	required by Section 26.04(e-2).
670	670	(e) A person who owns taxable property is entitled to an
671	671	injunction restraining the collection of taxes by a taxing unit in
672	672	which the property is taxable if the taxing unit has not complied
673	673	with the requirements of this section or Section 26.04 [and the
674	674	failure to comply was not in good faith]. An action to enjoin the
675	675	collection of taxes must be filed not later than the 15th day after
676	676	the date the taxing unit adopts a tax rate. A property owner is not
677	677	required to pay the taxes imposed by a taxing unit on the owner's
678	678	property while an action filed by the property owner to enjoin the
679	679	collection of taxes imposed by the taxing unit on the owner's
680	680	property is pending. If the property owner pays the taxes and
681	681	subsequently prevails in the action, the property owner is entitled
682	682	to a refund of the taxes paid, together with reasonable attorney's
683	683	fees and court costs. The property owner is not required to apply
684	684	to the collector for the taxing unit to receive the refund [prior to
685	685	the date a taxing unit delivers substantially all of its tax bills].
686	686	(g) Notwithstanding Subsection (a), the governing body of a
687	687	school district that elects to adopt a tax rate before the adoption
688	688	of a budget for the fiscal year that begins in the current tax year
689	689	may adopt a tax rate for the current tax year before receipt of the
690	690	certified appraisal roll for the school district if the chief
691	691	appraiser of the appraisal district in which the school district
692	692	participates has certified to the assessor for the school district
693	693	an estimate of the taxable value of property in the school district
694	694	as provided by Section 26.01(e). If a school district adopts a tax
695	695	rate under this subsection, the no new taxes [effective] tax rate
696	696	and the rollback tax rate of the district shall be calculated based
697	697	on the certified estimate of taxable value.
698	698	SECTION 17. Section 26.052(e), Tax Code, is amended to read
699	699	as follows:
700	700	(e) Public notice provided under Subsection (c) must
701	701	specify:
702	702	(1) the tax rate that the governing body proposes to
703	703	adopt;
704	704	(2) the date, time, and location of the meeting of the
705	705	governing body of the taxing unit at which the governing body will
706	706	consider adopting the proposed tax rate; and
707	707	(3) if the proposed tax rate for the taxing unit
708	708	exceeds the unit's no new taxes [effective] tax rate calculated as
709	709	provided by Section 26.04, a statement substantially identical to
710	710	the following: "The proposed tax rate would increase total taxes in
711	711	(name of taxing unit) by (percentage by which the proposed tax rate
712	712	exceeds the no new taxes [effective] tax rate)."
713	713	SECTION 18. Sections 26.06(b), (c), (d), and (e), Tax Code,
714	714	are amended to read as follows:
715	715	(b) The notice of a public hearing may not be smaller than
716	716	one-quarter page of a standard-size or a tabloid-size newspaper,
717	717	and the headline on the notice must be in 24-point or larger type.
718	718	The notice must contain a statement in the following form:
719	719	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
720	720	"The (name of the taxing unit) will hold two public hearings
721	721	on a proposal to increase total tax revenues from properties on the
722	722	tax roll in the preceding tax year by (percentage by which proposed
723	723	tax rate exceeds lower of rollback tax rate or no new taxes
724	724	[effective] tax rate calculated under this chapter) percent. Your
725	725	individual taxes may increase at a greater or lesser rate, or even
726	726	decrease, depending on the change in the taxable value of your
727	727	property in relation to the change in taxable value of all other
728	728	property and the tax rate that is adopted.
729	729	"The first public hearing will be held on (date and time) at
730	730	(meeting place).
731	731	"The second public hearing will be held on (date and time) at
732	732	(meeting place).
733	733	"(Names of all members of the governing body, showing how
734	734	each voted on the proposal to consider the tax increase or, if one
735	735	or more were absent, indicating the absences.)
736	736	"The average taxable value of a residence homestead in (name
737	737	of taxing unit) last year was $____ (average taxable value of a
738	738	residence homestead in the taxing unit for the preceding tax year,
739	739	disregarding residence homestead exemptions available only to
740	740	disabled persons or persons 65 years of age or older). Based on
741	741	last year's tax rate of $____ (preceding year's adopted tax rate)
742	742	per $100 of taxable value, the amount of taxes imposed last year on
743	743	the average home was $____ (tax on average taxable value of a
744	744	residence homestead in the taxing unit for the preceding tax year,
745	745	disregarding residence homestead exemptions available only to
746	746	disabled persons or persons 65 years of age or older).
747	747	"The average taxable value of a residence homestead in (name
748	748	of taxing unit) this year is $____ (average taxable value of a
749	749	residence homestead in the taxing unit for the current tax year,
750	750	disregarding residence homestead exemptions available only to
751	751	disabled persons or persons 65 years of age or older). If the
752	752	governing body adopts the no new taxes [effective] tax rate for this
753	753	year of $____ (no new taxes [effective] tax rate) per $100 of
754	754	taxable value, the amount of taxes imposed this year on the average
755	755	home would be $____ (tax on average taxable value of a residence
756	756	homestead in the taxing unit for the current tax year, disregarding
757	757	residence homestead exemptions available only to disabled persons
758	758	or persons 65 years of age or older).
759	759	"If the governing body adopts the proposed tax rate of $____
760	760	(proposed tax rate) per $100 of taxable value, the amount of taxes
761	761	imposed this year on the average home would be $____ (tax on the
762	762	average taxable value of a residence in the taxing unit for the
763	763	current year disregarding residence homestead exemptions available
764	764	only to disabled persons or persons 65 years of age or older).
765	765	"Members of the public are encouraged to attend the hearings
766	766	and express their views."
767	767	(c) The notice of a public hearing under this section may be
768	768	delivered by mail to each property owner in the unit, or may be
769	769	published in a newspaper. If the notice is published in a
770	770	newspaper, it may not be in the part of the paper in which legal
771	771	notices and classified advertisements appear. The [If the taxing
772	772	unit operates an Internet website, the] notice must be posted on the
773	773	Internet website operated by the taxing unit from the date the
774	774	notice is first published until the second public hearing is
775	775	concluded.
776	776	(d) At the public hearings the governing body shall announce
777	777	the date, time, and place of the meeting at which it will vote on the
778	778	proposed tax rate. After each hearing the governing body shall give
779	779	notice of the meeting at which it will vote on the proposed tax rate
780	780	and the notice shall be in the same form as prescribed by
781	781	Subsections (b) and (c), except that it must state the following:
782	782	"NOTICE OF TAX REVENUE INCREASE
783	783	"The (name of the taxing unit) conducted public hearings on
784	784	(date of first hearing) and (date of second hearing) on a proposal
785	785	to increase the total tax revenues of the (name of the taxing unit)
786	786	from properties on the tax roll in the preceding year by (percentage
787	787	by which proposed tax rate exceeds lower of rollback tax rate or no
788	788	new taxes [effective] tax rate calculated under this chapter)
789	789	percent.
790	790	"The total tax revenue proposed to be raised last year at last
791	791	year's tax rate of (insert tax rate for the preceding year) for each
792	792	$100 of taxable value was (insert total amount of taxes imposed in
793	793	the preceding year).
794	794	"The total tax revenue proposed to be raised this year at the
795	795	proposed tax rate of (insert proposed tax rate) for each $100 of
796	796	taxable value, excluding tax revenue to be raised from new property
797	797	added to the tax roll this year, is (insert amount computed by
798	798	multiplying proposed tax rate by the difference between current
799	799	total value and new property value).
800	800	"The total tax revenue proposed to be raised this year at the
801	801	proposed tax rate of (insert proposed tax rate) for each $100 of
802	802	taxable value, including tax revenue to be raised from new property
803	803	added to the tax roll this year, is (insert amount computed by
804	804	multiplying proposed tax rate by current total value).
805	805	"The (governing body of the taxing unit) is scheduled to vote
806	806	on the tax rate that will result in that tax increase at a public
807	807	meeting to be held on (date of meeting) at (location of meeting,
808	808	including mailing address) at (time of meeting).
809	809	"The (governing body of the taxing unit) proposes to use the
810	810	increase in total tax revenue for the purpose of (description of
811	811	purpose of increase)."
812	812	(e) The meeting to vote on the tax increase may not be
813	813	earlier than the third day or later than the 14th day after the date
814	814	of the second public hearing. The meeting must be held inside the
815	815	boundaries of the taxing unit in a publicly owned building or, if a
816	816	suitable publicly owned building is not available, in a suitable
817	817	building to which the public normally has access. If the governing
818	818	body does not adopt a tax rate that exceeds the lower of the
819	819	rollback tax rate or the no new taxes [effective] tax rate by the
820	820	14th day, it must give a new notice under Subsection (d) before it
821	821	may adopt a rate that exceeds the lower of the rollback tax rate or
822	822	the no new taxes [effective] tax rate.
823	823	SECTION 19. Section 26.065(b), Tax Code, is amended to read
824	824	as follows:
825	825	(b) The taxing [If the taxing unit owns, operates, or
826	826	controls an Internet website, the] unit shall post notice of the
827	827	public hearing on the Internet website owned, operated, or
828	828	controlled by the unit continuously for at least seven days
829	829	immediately before the public hearing on the proposed tax rate
830	830	increase and at least seven days immediately before the date of the
831	831	vote proposing the increase in the tax rate.
832	832	SECTION 20. The heading to Section 26.08, Tax Code, is
833	833	amended to read as follows:
834	834	Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
835	835	SECTION 21. Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
836	836	(g), (h), (n), and (p), Tax Code, are amended to read as follows:
837	837	(a) If the governing body of a taxing unit [school district]
838	838	adopts a tax rate that exceeds the taxing unit's [district's]
839	839	rollback tax rate, the registered voters of the taxing unit
840	840	[district] at an election held for that purpose must determine
841	841	whether to approve the adopted tax rate. When increased
842	842	expenditure of money by a taxing unit [school district] is
843	843	necessary to respond to a disaster, including a tornado, hurricane,
844	844	flood, or other calamity, but not including a drought, that has
845	845	impacted the taxing unit [a school district] and the governor has
846	846	requested federal disaster assistance for the area in which the
847	847	taxing unit [school district] is located, an election is not
848	848	required under this section to approve the tax rate adopted by the
849	849	governing body for the year following the year in which the disaster
850	850	occurs.
851	851	(b) The governing body shall order that the election be held
852	852	in the taxing unit [school district] on a date not less than 30 or
853	853	more than 90 days after the day on which it adopted the tax rate.
854	854	Section 41.001, Election Code, does not apply to the election
855	855	unless a date specified by that section falls within the time
856	856	permitted by this section. At the election, the ballots shall be
857	857	prepared to permit voting for or against the proposition:
858	858	"Approving the ad valorem tax rate of $_____ per $100 valuation in
859	859	(name of taxing unit [school district]) for the current year, a rate
860	860	that is $_____ higher per $100 valuation than the [school district]
861	861	rollback tax rate of (name of taxing unit), for the purpose of
862	862	(description of purpose of increase)." The ballot proposition must
863	863	include the adopted tax rate and the difference between that rate
864	864	and the rollback tax rate in the appropriate places.
865	865	(d) If the proposition is not approved as provided by
866	866	Subsection (c), the governing body may not adopt a tax rate for the
867	867	taxing unit [school district] for the current year that exceeds the
868	868	taxing unit's [school district's] rollback tax rate.
869	869	(d-1) If, after tax bills for the taxing unit [school
870	870	district] have been mailed, a proposition to approve the taxing
871	871	unit's [school district's] adopted tax rate is not approved by the
872	872	voters of the taxing unit [district] at an election held under this
873	873	section, on subsequent adoption of a new tax rate by the governing
874	874	body of the taxing unit [district], the assessor for the taxing unit
875	875	[school] shall prepare and mail corrected tax bills. The assessor
876	876	shall include with each bill a brief explanation of the reason for
877	877	and effect of the corrected bill. The date on which the taxes
878	878	become delinquent for the year is extended by a number of days equal
879	879	to the number of days between the date the first tax bills were sent
880	880	and the date the corrected tax bills were sent.
881	881	(d-2) If a property owner pays taxes calculated using the
882	882	originally adopted tax rate of the taxing unit [school district]
883	883	and the proposition to approve the adopted tax rate is not approved
884	884	by the voters, the taxing unit [school district] shall refund the
885	885	difference between the amount of taxes paid and the amount due under
886	886	the subsequently adopted rate if the difference between the amount
887	887	of taxes paid and the amount due under the subsequent rate is $1 or
888	888	more. If the difference between the amount of taxes paid and the
889	889	amount due under the subsequent rate is less than $1, the taxing
890	890	unit [school district] shall refund the difference on request of
891	891	the taxpayer. An application for a refund of less than $1 must be
892	892	made within 90 days after the date the refund becomes due or the
893	893	taxpayer forfeits the right to the refund.
894	894	(e) For purposes of this section, local tax funds dedicated
895	895	to a junior college district under Section 45.105(e), Education
896	896	Code, shall be eliminated from the calculation of the tax rate
897	897	adopted by the governing body of a [the] school district. However,
898	898	the funds dedicated to the junior college district are subject to
899	899	Section 26.085.
900	900	(g) In a school district that received distributions from an
901	901	equalization tax imposed under former Chapter 18, Education Code,
902	902	the no new taxes [effective] rate of that tax as of the date of the
903	903	county unit system's abolition is added to the district's rollback
904	904	tax rate.
905	905	(h) For purposes of this section, increases in taxable
906	906	values and tax levies occurring within a reinvestment zone under
907	907	Chapter 311 (Tax Increment Financing Act), in which a school [the]
908	908	district is a participant, shall be eliminated from the calculation
909	909	of the tax rate adopted by the governing body of the school
910	910	district.
911	911	(n) For purposes of this section, the rollback tax rate of a
912	912	school district whose maintenance and operations tax rate for the
913	913	2005 tax year was $1.50 or less per $100 of taxable value is:
914	914	(1) for the 2006 tax year, the sum of the rate that is
915	915	equal to 88.67 percent of the maintenance and operations tax rate
916	916	adopted by the district for the 2005 tax year, the rate of $0.04 per
917	917	$100 of taxable value, and the district's current debt rate; and
918	918	(2) for the 2007 and subsequent tax years, the lesser
919	919	of the following:
920	920	(A) the sum of the following:
921	921	(i) the rate per $100 of taxable value that
922	922	is equal to the product of the state compression percentage, as
923	923	determined under Section 42.2516, Education Code, for the current
924	924	year and $1.50;
925	925	(ii) the rate of $0.04 per $100 of taxable
926	926	value;
927	927	(iii) the rate that is equal to the sum of
928	928	the differences for the 2006 and each subsequent tax year between
929	929	the adopted tax rate of the district for that year if the rate was
930	930	approved at an election under this section and the rollback tax rate
931	931	of the district for that year; and
932	932	(iv) the district's current debt rate; or
933	933	(B) the sum of the following:
934	934	(i) the no new taxes [effective]
935	935	maintenance and operations tax rate of the district as computed
936	936	under Subsection (i) [or (k), as applicable];
937	937	(ii) the rate per $100 of taxable value that
938	938	is equal to the product of the state compression percentage, as
939	939	determined under Section 42.2516, Education Code, for the current
940	940	year and $0.06; and
941	941	(iii) the district's current debt rate.
942	942	(p) Notwithstanding Subsections (i), (n), and (o), if for
943	943	the preceding tax year a school district adopted a maintenance and
944	944	operations tax rate that was less than the district's no new taxes
945	945	[effective] maintenance and operations tax rate for that preceding
946	946	tax year, the rollback tax rate of the district for the current tax
947	947	year is calculated as if the district adopted a maintenance and
948	948	operations tax rate for the preceding tax year that was equal to the
949	949	district's no new taxes [effective] maintenance and operations tax
950	950	rate for that preceding tax year.
951	951	SECTION 22. Section 26.08(i), Tax Code, as effective
952	952	September 1, 2017, is amended to read as follows:
953	953	(i) For purposes of this section, the no new taxes
954	954	[effective] maintenance and operations tax rate of a school
955	955	district is the tax rate that, applied to the current total value
956	956	for the district, would impose taxes in an amount that, when added
957	957	to state funds that would be distributed to the district under
958	958	Chapter 42, Education Code, for the school year beginning in the
959	959	current tax year using that tax rate, would provide the same amount
960	960	of state funds distributed under Chapter 42, Education Code, and
961	961	maintenance and operations taxes of the district per student in
962	962	weighted average daily attendance for that school year that would
963	963	have been available to the district in the preceding year if the
964	964	funding elements for Chapters 41 and 42, Education Code, for the
965	965	current year had been in effect for the preceding year.
966	966	SECTION 23. Sections 26.16(a) and (d), Tax Code, are
967	967	amended to read as follows:
968	968	(a) The county assessor-collector for each county [that
969	969	maintains an Internet website] shall post on the Internet website
970	970	maintained by [of] the county the following information for the
971	971	most recent five tax years beginning with the 2012 tax year for each
972	972	taxing unit all or part of the territory of which is located in the
973	973	county:
974	974	(1) the adopted tax rate;
975	975	(2) the maintenance and operations rate;
976	976	(3) the debt rate;
977	977	(4) the no new taxes [effective] tax rate;
978	978	(5) the no new taxes [effective] maintenance and
979	979	operations rate; and
980	980	(6) the rollback tax rate.
981	981	(d) The county assessor-collector shall post immediately
982	982	below the table prescribed by Subsection (c) the following
983	983	statement:
984	984	"The county is providing this table of property tax rate
985	985	information as a service to the residents of the county. Each
986	986	individual taxing unit is responsible for calculating the property
987	987	tax rates listed in this table pertaining to that taxing unit and
988	988	providing that information to the county.
989	989	"The adopted tax rate is the tax rate adopted by the governing
990	990	body of a taxing unit.
991	991	"The maintenance and operations rate is the component of the
992	992	adopted tax rate of a taxing unit that will impose the amount of
993	993	taxes needed to fund maintenance and operation expenditures of the
994	994	unit for the following year.
995	995	"The debt rate is the component of the adopted tax rate of a
996	996	taxing unit that will impose the amount of taxes needed to fund the
997	997	unit's debt service for the following year.
998	998	"The no new taxes [effective] tax rate is the tax rate that
999	999	would generate the same amount of revenue in the current tax year as
1000	1000	was generated by a taxing unit's adopted tax rate in the preceding
1001	1001	tax year from property that is taxable in both the current tax year
1002	1002	and the preceding tax year.
1003	1003	"The no new taxes [effective] maintenance and operations rate
1004	1004	is the tax rate that would generate the same amount of revenue for
1005	1005	maintenance and operations in the current tax year as was generated
1006	1006	by a taxing unit's maintenance and operations rate in the preceding
1007	1007	tax year from property that is taxable in both the current tax year
1008	1008	and the preceding tax year.
1009	1009	"The rollback tax rate is the highest tax rate a taxing unit
1010	1010	may adopt before requiring voter approval at an election. An [In
1011	1011	the case of a taxing unit other than a school district, the voters
1012	1012	by petition may require that a rollback election be held if the unit
1013	1013	adopts a tax rate in excess of the unit's rollback tax rate. In the
1014	1014	case of a school district, an] election will automatically be held
1015	1015	if a taxing unit [the district] wishes to adopt a tax rate in excess
1016	1016	of the unit's [district's] rollback tax rate."
1017	1017	SECTION 24. Chapter 26, Tax Code, is amended by adding
1018	1018	Section 26.17 to read as follows:
1019	1019	Sec. 26.17. POSTING OF TAX RATE AND BUDGET INFORMATION ON
1020	1020	TAXING UNIT'S WEBSITE. Each taxing unit shall maintain an Internet
1021	1021	website. In addition to posting any other information required by
1022	1022	this title, each taxing unit shall post on the Internet website
1023	1023	maintained by the taxing unit the following information in a format
1024	1024	prescribed by the comptroller:
1025	1025	(1) the name of and official contact information for
1026	1026	each member of the governing body of the taxing unit;
1027	1027	(2) the mailing address, e-mail address, and telephone
1028	1028	number of the taxing unit;
1029	1029	(3) the taxing unit's budget for the preceding two
1030	1030	years;
1031	1031	(4) the taxing unit's proposed or adopted budget for
1032	1032	the current year;
1033	1033	(5) the change in the amount of the taxing unit's
1034	1034	budget from the preceding year to the current year, by dollar amount
1035	1035	and percentage;
1036	1036	(6) in the case of a taxing unit other than a school
1037	1037	district, the amount of property tax revenue budgeted for
1038	1038	maintenance and operations for:
1039	1039	(A) the preceding two years; and
1040	1040	(B) the current year;
1041	1041	(7) in the case of a taxing unit other than a school
1042	1042	district, the amount of property tax revenue budgeted for debt
1043	1043	service for:
1044	1044	(A) the preceding two years; and
1045	1045	(B) the current year;
1046	1046	(8) the tax rate for maintenance and operations
1047	1047	adopted by the taxing unit for the preceding two years;
1048	1048	(9) the tax rate for debt service adopted by the taxing
1049	1049	unit for the preceding two years;
1050	1050	(10) the tax rate for maintenance and operations
1051	1051	proposed by the taxing unit for the current year;
1052	1052	(11) the tax rate for debt service proposed by the
1053	1053	taxing unit for the current year; and
1054	1054	(12) the most recent financial audit of the taxing
1055	1055	unit.
1056	1056	SECTION 25. Sections 31.12(a) and (b), Tax Code, are
1057	1057	amended to read as follows:
1058	1058	(a) If a refund of a tax provided by Section 11.431(b),
1059	1059	26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or
1060	1060	before the 60th day after the date the liability for the refund
1061	1061	arises, no interest is due on the amount refunded. If not paid on or
1062	1062	before that 60th day, the amount of the tax to be refunded accrues
1063	1063	interest at a rate of one percent for each month or part of a month
1064	1064	that the refund is unpaid, beginning with the date on which the
1065	1065	liability for the refund arises.
1066	1066	(b) For purposes of this section, liability for a refund
1067	1067	arises:
1068	1068	(1) if the refund is required by Section 11.431(b), on
1069	1069	the date the chief appraiser notifies the collector for the unit of
1070	1070	the approval of the late homestead exemption;
1071	1071	(2) if the refund is required by Section 26.08(d-2)
1072	1072	[26.07(g)], on the date the results of the election to reduce the
1073	1073	tax rate are certified;
1074	1074	(3) if the refund is required by Section 26.15(f):
1075	1075	(A) for a correction to the tax roll made under
1076	1076	Section 26.15(b), on the date the change in the tax roll is
1077	1077	certified to the assessor for the taxing unit under Section 25.25;
1078	1078	or
1079	1079	(B) for a correction to the tax roll made under
1080	1080	Section 26.15(c), on the date the change in the tax roll is ordered
1081	1081	by the governing body of the taxing unit;
1082	1082	(4) if the refund is required by Section 31.11, on the
1083	1083	date the auditor for the taxing unit determines that the payment was
1084	1084	erroneous or excessive or, if the amount of the refund exceeds the
1085	1085	applicable amount specified by Section 31.11(a), on the date the
1086	1086	governing body of the unit approves the refund; or
1087	1087	(5) if the refund is required by Section 31.111, on the
1088	1088	date the collector for the taxing unit determines that the payment
1089	1089	was erroneous.
1090	1090	SECTION 26. Section 33.08(b), Tax Code, is amended to read
1091	1091	as follows:
1092	1092	(b) The governing body of the taxing unit or appraisal
1093	1093	district, in the manner required by law for official action, may
1094	1094	provide that taxes that become delinquent on or after June 1 under
1095	1095	Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
1096	1096	31.04, or 42.42 incur an additional penalty to defray costs of
1097	1097	collection. The amount of the penalty may not exceed the amount of
1098	1098	the compensation specified in the applicable contract with an
1099	1099	attorney under Section 6.30 to be paid in connection with the
1100	1100	collection of the delinquent taxes.
1101	1101	SECTION 27. Section 45.105(e), Education Code, is amended
1102	1102	to read as follows:
1103	1103	(e) The governing body of an independent school district
1104	1104	that governs a junior college district under Subchapter B, Chapter
1105	1105	130, in a county with a population of more than two million may
1106	1106	dedicate a specific percentage of the local tax levy to the use of
1107	1107	the junior college district for facilities and equipment or for the
1108	1108	maintenance and operating expenses of the junior college district.
1109	1109	To be effective, the dedication must be made by the governing body
1110	1110	on or before the date on which the governing body adopts its tax
1111	1111	rate for a year. The amount of local tax funds derived from the
1112	1112	percentage of the local tax levy dedicated to a junior college
1113	1113	district from a tax levy may not exceed the amount that would be
1114	1114	levied by five percent of the no new taxes [effective] tax rate for
1115	1115	the tax year calculated as provided by Section 26.04, Tax Code, on
1116	1116	all property taxable by the school district. All real property
1117	1117	purchased with these funds is the property of the school district,
1118	1118	but is subject to the exclusive control of the governing body of the
1119	1119	junior college district for as long as the junior college district
1120	1120	uses the property for educational purposes.
1121	1121	SECTION 28. Section 130.016(b), Education Code, is amended
1122	1122	to read as follows:
1123	1123	(b) If the board of trustees of an independent school
1124	1124	district that divests itself of the management, control, and
1125	1125	operation of a junior college district under this section or
1126	1126	[under] Section 130.017 [of this code] was authorized by
1127	1127	[Subsection (e) of] Section 45.105(e) or former Section 20.48(e)
1128	1128	[20.48 of this code] to dedicate a portion of its tax levy to the
1129	1129	junior college district before the divestment, the junior college
1130	1130	district may levy an ad valorem tax from and after the divestment.
1131	1131	In the first two years in which the junior college district levies
1132	1132	an ad valorem tax, the tax rate adopted by the governing body may
1133	1133	not exceed the rate that, if applied to the total taxable value
1134	1134	submitted to the governing body under Section 26.04, Tax Code,
1135	1135	would impose an amount equal to the amount of taxes of the school
1136	1136	district dedicated to the junior college under [Subsection (e) of]
1137	1137	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
1138	1138	in the last dedication before the divestment. In subsequent years,
1139	1139	the tax rate of the junior college district is subject to Section
1140	1140	26.08 [26.07], Tax Code.
1141	1141	SECTION 29. Sections 281.124(d) and (e), Health and Safety
1142	1142	Code, are amended to read as follows:
1143	1143	(d) If a majority of the votes cast in the election favor the
1144	1144	proposition, the tax rate for the specified tax year is the rate
1145	1145	approved by the voters, and that rate is not subject to [a rollback
1146	1146	election under] Section 26.08 [26.07], Tax Code. The board shall
1147	1147	adopt the tax rate as provided by Chapter 26, Tax Code.
1148	1148	(e) If the proposition is not approved as provided by
1149	1149	Subsection (c), the board may not adopt a tax rate for the district
1150	1150	for the specified tax year that exceeds the rate that was not
1151	1151	approved, and Section 26.08 [26.07], Tax Code, applies to the
1152	1152	adopted rate if that rate exceeds the district's rollback tax rate.
1153	1153	SECTION 30. Section 102.007(d), Local Government Code, is
1154	1154	amended to read as follows:
1155	1155	(d) An adopted budget must contain a cover page that
1156	1156	includes:
1157	1157	(1) one of the following statements in 18-point or
1158	1158	larger type that accurately describes the adopted budget:
1159	1159	(A) "This budget will raise more revenue from
1160	1160	property taxes than last year's budget by an amount of (insert total
1161	1161	dollar amount of increase), which is a (insert percentage increase)
1162	1162	percent increase from last year's budget. The property tax revenue
1163	1163	to be raised from new property added to the tax roll this year is
1164	1164	(insert amount computed by multiplying the proposed tax rate by the
1165	1165	value of new property added to the roll).";
1166	1166	(B) "This budget will raise less revenue from
1167	1167	property taxes than last year's budget by an amount of (insert total
1168	1168	dollar amount of decrease), which is a (insert percentage decrease)
1169	1169	percent decrease from last year's budget. The property tax revenue
1170	1170	to be raised from new property added to the tax roll this year is
1171	1171	(insert amount computed by multiplying the proposed tax rate by the
1172	1172	value of new property added to the roll)."; or
1173	1173	(C) "This budget will raise the same amount of
1174	1174	revenue from property taxes as last year's budget. The property tax
1175	1175	revenue to be raised from new property added to the tax roll this
1176	1176	year is (insert amount computed by multiplying the proposed tax
1177	1177	rate by the value of new property added to the roll).";
1178	1178	(2) the record vote of each member of the governing
1179	1179	body by name voting on the adoption of the budget;
1180	1180	(3) the municipal property tax rates for the preceding
1181	1181	fiscal year, and each municipal property tax rate that has been
1182	1182	adopted or calculated for the current fiscal year, including:
1183	1183	(A) the property tax rate;
1184	1184	(B) the no new taxes [effective] tax rate;
1185	1185	(C) the no new taxes [effective] maintenance and
1186	1186	operations tax rate;
1187	1187	(D) the rollback tax rate; and
1188	1188	(E) the debt rate; and
1189	1189	(4) the total amount of municipal debt obligations.
1190	1190	SECTION 31. Section 111.008(d), Local Government Code, is
1191	1191	amended to read as follows:
1192	1192	(d) An adopted budget must contain a cover page that
1193	1193	includes:
1194	1194	(1) one of the following statements in 18-point or
1195	1195	larger type that accurately describes the adopted budget:
1196	1196	(A) "This budget will raise more revenue from
1197	1197	property taxes than last year's budget by an amount of (insert total
1198	1198	dollar amount of increase), which is a (insert percentage increase)
1199	1199	percent increase from last year's budget. The property tax revenue
1200	1200	to be raised from new property added to the tax roll this year is
1201	1201	(insert amount computed by multiplying the proposed tax rate by the
1202	1202	value of new property added to the roll).";
1203	1203	(B) "This budget will raise less revenue from
1204	1204	property taxes than last year's budget by an amount of (insert total
1205	1205	dollar amount of decrease), which is a (insert percentage decrease)
1206	1206	percent decrease from last year's budget. The property tax revenue
1207	1207	to be raised from new property added to the tax roll this year is
1208	1208	(insert amount computed by multiplying the proposed tax rate by the
1209	1209	value of new property added to the roll)."; or
1210	1210	(C) "This budget will raise the same amount of
1211	1211	revenue from property taxes as last year's budget. The property tax
1212	1212	revenue to be raised from new property added to the tax roll this
1213	1213	year is (insert amount computed by multiplying the proposed tax
1214	1214	rate by the value of new property added to the roll).";
1215	1215	(2) the record vote of each member of the
1216	1216	commissioners court by name voting on the adoption of the budget;
1217	1217	(3) the county property tax rates for the preceding
1218	1218	fiscal year, and each county property tax rate that has been adopted
1219	1219	or calculated for the current fiscal year, including:
1220	1220	(A) the property tax rate;
1221	1221	(B) the no new taxes [effective] tax rate;
1222	1222	(C) the no new taxes [effective] maintenance and
1223	1223	operations tax rate;
1224	1224	(D) the rollback tax rate; and
1225	1225	(E) the debt rate; and
1226	1226	(4) the total amount of county debt obligations.
1227	1227	SECTION 32. Section 111.039(d), Local Government Code, is
1228	1228	amended to read as follows:
1229	1229	(d) An adopted budget must contain a cover page that
1230	1230	includes:
1231	1231	(1) one of the following statements in 18-point or
1232	1232	larger type that accurately describes the adopted budget:
1233	1233	(A) "This budget will raise more revenue from
1234	1234	property taxes than last year's budget by an amount of (insert total
1235	1235	dollar amount of increase), which is a (insert percentage increase)
1236	1236	percent increase from last year's budget. The property tax revenue
1237	1237	to be raised from new property added to the tax roll this year is
1238	1238	(insert amount computed by multiplying the proposed tax rate by the
1239	1239	value of new property added to the roll).";
1240	1240	(B) "This budget will raise less revenue from
1241	1241	property taxes than last year's budget by an amount of (insert total
1242	1242	dollar amount of decrease), which is a (insert percentage decrease)
1243	1243	percent decrease from last year's budget. The property tax revenue
1244	1244	to be raised from new property added to the tax roll this year is
1245	1245	(insert amount computed by multiplying the proposed tax rate by the
1246	1246	value of new property added to the roll)."; or
1247	1247	(C) "This budget will raise the same amount of
1248	1248	revenue from property taxes as last year's budget. The property tax
1249	1249	revenue to be raised from new property added to the tax roll this
1250	1250	year is (insert amount computed by multiplying the proposed tax
1251	1251	rate by the value of new property added to the roll).";
1252	1252	(2) the record vote of each member of the
1253	1253	commissioners court by name voting on the adoption of the budget;
1254	1254	(3) the county property tax rates for the preceding
1255	1255	fiscal year, and each county property tax rate that has been adopted
1256	1256	or calculated for the current fiscal year, including:
1257	1257	(A) the property tax rate;
1258	1258	(B) the no new taxes [effective] tax rate;
1259	1259	(C) the no new taxes [effective] maintenance and
1260	1260	operations tax rate;
1261	1261	(D) the rollback tax rate; and
1262	1262	(E) the debt rate; and
1263	1263	(4) the total amount of county debt obligations.
1264	1264	SECTION 33. Section 111.068(c), Local Government Code, is
1265	1265	amended to read as follows:
1266	1266	(c) An adopted budget must contain a cover page that
1267	1267	includes:
1268	1268	(1) one of the following statements in 18-point or
1269	1269	larger type that accurately describes the adopted budget:
1270	1270	(A) "This budget will raise more revenue from
1271	1271	property taxes than last year's budget by an amount of (insert total
1272	1272	dollar amount of increase), which is a (insert percentage increase)
1273	1273	percent increase from last year's budget. The property tax revenue
1274	1274	to be raised from new property added to the tax roll this year is
1275	1275	(insert amount computed by multiplying the proposed tax rate by the
1276	1276	value of new property added to the roll).";
1277	1277	(B) "This budget will raise less revenue from
1278	1278	property taxes than last year's budget by an amount of (insert total
1279	1279	dollar amount of decrease), which is a (insert percentage decrease)
1280	1280	percent decrease from last year's budget. The property tax revenue
1281	1281	to be raised from new property added to the tax roll this year is
1282	1282	(insert amount computed by multiplying the proposed tax rate by the
1283	1283	value of new property added to the roll)."; or
1284	1284	(C) "This budget will raise the same amount of
1285	1285	revenue from property taxes as last year's budget. The property tax
1286	1286	revenue to be raised from new property added to the tax roll this
1287	1287	year is (insert amount computed by multiplying the proposed tax
1288	1288	rate by the value of new property added to the roll).";
1289	1289	(2) the record vote of each member of the
1290	1290	commissioners court by name voting on the adoption of the budget;
1291	1291	(3) the county property tax rates for the preceding
1292	1292	fiscal year, and each county property tax rate that has been adopted
1293	1293	or calculated for the current fiscal year, including:
1294	1294	(A) the property tax rate;
1295	1295	(B) the no new taxes [effective] tax rate;
1296	1296	(C) the no new taxes [effective] maintenance and
1297	1297	operations tax rate;
1298	1298	(D) the rollback tax rate; and
1299	1299	(E) the debt rate; and
1300	1300	(4) the total amount of county debt obligations.
1301	1301	SECTION 34. Sections 140.010(a), (d), and (e), Local
1302	1302	Government Code, are amended to read as follows:
1303	1303	(a) In this section, "no new taxes ["effective] tax rate"
1304	1304	and "rollback tax rate" mean the no new taxes [effective] tax rate
1305	1305	and rollback tax rate of a county or municipality, as applicable, as
1306	1306	calculated under Chapter 26, Tax Code.
1307	1307	(d) A county or municipality that proposes a property tax
1308	1308	rate that does not exceed the lower of the no new taxes [effective]
1309	1309	tax rate or the rollback tax rate shall provide the following
1310	1310	notice:
1311	1311	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
1312	1312	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
1313	1313	"A tax rate of $______ per $100 valuation has been proposed by the
1314	1314	governing body of (insert name of county or municipality).
1315	1315	PROPOSED TAX RATE $______ per $100
1316	1316	PRECEDING YEAR'S TAX RATE $______ per $100
1317	1317	NO NEW TAXES [EFFECTIVE] TAX RATE $______ per $100
1318	1318	"The no new taxes [effective] tax rate is the total tax rate needed
1319	1319	to raise the same amount of property tax revenue for (insert name of
1320	1320	county or municipality) from the same properties in both the
1321	1321	(insert preceding tax year) tax year and the (insert current tax
1322	1322	year) tax year.
1323	1323	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
1324	1324	FOLLOWS:
1325	1325	property tax amount = (rate) x (taxable value of your property) /
1326	1326	100
1327	1327	"For assistance or detailed information about tax calculations,
1328	1328	please contact:
1329	1329	(insert name of county or municipal tax assessor-collector)
1330	1330	(insert name of county or municipality) tax
1331	1331	assessor-collector
1332	1332	(insert address)
1333	1333	(insert telephone number)
1334	1334	(insert e-mail address)
1335	1335	(insert Internet website address[, if applicable])"
1336	1336	(e) A county or municipality that proposes a property tax
1337	1337	rate that exceeds the lower of the no new taxes [effective] tax rate
1338	1338	or the rollback tax rate shall provide the following notice:
1339	1339	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
1340	1340	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
1341	1341	"A tax rate of $_____ per $100 valuation has been proposed for
1342	1342	adoption by the governing body of (insert name of county or
1343	1343	municipality). This rate exceeds the lower of the no new taxes
1344	1344	[effective] or rollback tax rate, and state law requires that two
1345	1345	public hearings be held by the governing body before adopting the
1346	1346	proposed tax rate. The governing body of (insert name of county or
1347	1347	municipality) proposes to use revenue attributable to the tax rate
1348	1348	increase for the purpose of (description of purpose of increase).
1349	1349	PROPOSED TAX RATE $______ per $100
1350	1350	PRECEDING YEAR'S TAX RATE $______ per $100
1351	1351	NO NEW TAXES [EFFECTIVE] TAX RATE $______ per $100
1352	1352	ROLLBACK TAX RATE $______ per $100
1353	1353	"The no new taxes [effective] tax rate is the total tax rate needed
1354	1354	to raise the same amount of property tax revenue for (insert name of
1355	1355	county or municipality) from the same properties in both the
1356	1356	(insert preceding tax year) tax year and the (insert current tax
1357	1357	year) tax year.
1358	1358	"The rollback tax rate is the highest tax rate that (insert name of
1359	1359	county or municipality) may adopt without holding [before voters
1360	1360	are entitled to petition for] an election to ratify [limit] the rate
1361	1361	[that may be approved to the rollback rate].
1362	1362	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
1363	1363	FOLLOWS:
1364	1364	property tax amount = (rate) x (taxable value of your property) /
1365	1365	100
1366	1366	"For assistance or detailed information about tax calculations,
1367	1367	please contact:
1368	1368	(insert name of county or municipal tax assessor-collector)
1369	1369	(insert name of county or municipality) tax
1370	1370	assessor-collector
1371	1371	(insert address)
1372	1372	(insert telephone number)
1373	1373	(insert e-mail address)
1374	1374	(insert Internet website address[, if applicable])
1375	1375	"You are urged to attend and express your views at the following
1376	1376	public hearings on the proposed tax rate:
1377	1377	First Hearing: (insert date and time) at (insert location of
1378	1378	meeting).
1379	1379	Second Hearing: (insert date and time) at (insert location
1380	1380	of meeting)."
1381	1381	SECTION 35. Section 1101.254(f), Special District Local
1382	1382	Laws Code, is amended to read as follows:
1383	1383	(f) This section does not affect the applicability of [any
1384	1384	rights district voters may have to petition for an election under]
1385	1385	Section 26.08 [26.07], Tax Code, to the district's tax rate, except
1386	1386	that if district voters approve a tax rate increase under this
1387	1387	section, [the voters may not petition for an election under]
1388	1388	Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
1389	1389	for that year.
1390	1390	SECTION 36. Sections 1122.2522, 3828.157, and 8876.152,
1391	1391	Special District Local Laws Code, are amended to read as follows:
1392	1392	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
1393	1393	[(a)] If in any year the board adopts a tax rate that exceeds the
1394	1394	rollback tax rate calculated as provided by Chapter 26, Tax Code,
1395	1395	[the qualified voters of the district by petition may require that]
1396	1396	an election under Section 26.08 of that code must be held to
1397	1397	determine whether or not to approve [reduce] the tax rate adopted by
1398	1398	the board for that year [to the rollback tax rate].
1399	1399	[(b) To the extent a conflict exists between this section
1400	1400	and a provision of the Tax Code, the provision of the Tax Code
1401	1401	prevails.]
1402	1402	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
1403	1403	PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
1404	1404	not apply to a tax imposed under Section 3828.153 or 3828.156.
1405	1405	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
1406	1406	(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
1407	1407	not apply to a tax imposed by the district.
1408	1408	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
1409	1409	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
1410	1410	78th Legislature, Regular Session, 2003, applies] to the district.
1411	1411	SECTION 37. Section 49.107(g), Water Code, is amended to
1412	1412	read as follows:
1413	1413	(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
1414	1414	not apply to a tax levied and collected under this section or an ad
1415	1415	valorem tax levied and collected for the payment of the interest on
1416	1416	and principal of bonds issued by a district.
1417	1417	SECTION 38. Section 49.108(f), Water Code, is amended to
1418	1418	read as follows:
1419	1419	(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
1420	1420	not apply to a tax levied and collected for payments made under a
1421	1421	contract approved in accordance with this section.
1422	1422	SECTION 39. Section 49.236, Water Code, as added by Chapter
1423	1423	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
1424	1424	2003, is amended by amending Subsections (a) and (d) and adding
1425	1425	Subsection (e) to read as follows:
1426	1426	(a) Before the board adopts an ad valorem tax rate for the
1427	1427	district for debt service, operation and maintenance purposes, or
1428	1428	contract purposes, the board shall give notice of each meeting of
1429	1429	the board at which the adoption of a tax rate will be considered.
1430	1430	The notice must:
1431	1431	(1) contain a statement in substantially the following
1432	1432	form:
1433	1433	"NOTICE OF PUBLIC HEARING ON TAX RATE
1434	1434	"The (name of the district) will hold a public hearing on a
1435	1435	proposed tax rate for the tax year (year of tax levy) on (date and
1436	1436	time) at (meeting place). Your individual taxes may increase or
1437	1437	decrease, depending on the change in the taxable value of your
1438	1438	property in relation to the change in taxable value of all other
1439	1439	property and the tax rate that is adopted.
1440	1440	"(Names of all board members and, if a vote was taken, an
1441	1441	indication of how each voted on the proposed tax rate and an
1442	1442	indication of any absences.)";
1443	1443	(2) contain the following information:
1444	1444	(A) the district's total adopted tax rate for the
1445	1445	preceding year and the proposed tax rate, expressed as an amount per
1446	1446	$100;
1447	1447	(B) the difference, expressed as an amount per
1448	1448	$100 and as a percent increase or decrease, as applicable, in the
1449	1449	proposed tax rate compared to the adopted tax rate for the preceding
1450	1450	year;
1451	1451	(C) the average appraised value of a residence
1452	1452	homestead in the district in the preceding year and in the current
1453	1453	year; the district's total homestead exemption, other than an
1454	1454	exemption available only to disabled persons or persons 65 years of
1455	1455	age or older, applicable to that appraised value in each of those
1456	1456	years; and the average taxable value of a residence homestead in the
1457	1457	district in each of those years, disregarding any homestead
1458	1458	exemption available only to disabled persons or persons 65 years of
1459	1459	age or older;
1460	1460	(D) the amount of tax that would have been
1461	1461	imposed by the district in the preceding year on a residence
1462	1462	homestead appraised at the average appraised value of a residence
1463	1463	homestead in that year, disregarding any homestead exemption
1464	1464	available only to disabled persons or persons 65 years of age or
1465	1465	older;
1466	1466	(E) the amount of tax that would be imposed by the
1467	1467	district in the current year on a residence homestead appraised at
1468	1468	the average appraised value of a residence homestead in that year,
1469	1469	disregarding any homestead exemption available only to disabled
1470	1470	persons or persons 65 years of age or older, if the proposed tax
1471	1471	rate is adopted; [and]
1472	1472	(F) the difference between the amounts of tax
1473	1473	calculated under Paragraphs (D) and (E), expressed in dollars and
1474	1474	cents and described as the annual percentage increase or decrease,
1475	1475	as applicable, in the tax to be imposed by the district on the
1476	1476	average residence homestead in the district in the current year if
1477	1477	the proposed tax rate is adopted; and
1478	1478	(G) if the proposed combined debt service,
1479	1479	operation and maintenance, and contract tax rate exceeds the
1480	1480	rollback tax rate, a description of the purpose of the proposed tax
1481	1481	increase; and
1482	1482	(3) contain a statement in substantially the following
1483	1483	form:
1484	1484	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
1485	1485	"If operation and maintenance taxes on the average residence
1486	1486	homestead increase by more than four [eight] percent, [the
1487	1487	qualified voters of the district by petition may require that] an
1488	1488	election must be held to determine whether to ratify [reduce] the
1489	1489	operation and maintenance tax rate [to the rollback tax rate] under
1490	1490	Section 49.236(d), Water Code."
1491	1491	(d) If the governing body of a district adopts a combined
1492	1492	debt service, operation and maintenance, and contract tax rate that
1493	1493	exceeds the rollback tax rate, [would impose more than 1.08 times
1494	1494	the amount of tax imposed by the district in the preceding year on a
1495	1495	residence homestead appraised at the average appraised value of a
1496	1496	residence homestead in the district in that year, disregarding any
1497	1497	homestead exemption available only to disabled persons or persons
1498	1498	65 years of age or older, the qualified voters of the district by
1499	1499	petition may require that] an election must be held to determine
1500	1500	whether [or not] to ratify [reduce] the tax rate adopted for the
1501	1501	current year [to the rollback tax rate] in accordance with the
1502	1502	procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
1503	1503	26.081], Tax Code. For purposes of Sections 26.08(b)-(d), Tax
1504	1504	Code, [26.07(b)-(g)] and this section [subsection], the rollback
1505	1505	tax rate is the sum of the following tax rates:
1506	1506	(1) the current year's debt service tax rate;
1507	1507	(2) the current year's [and] contract tax rate; and
1508	1508	(3) [rates plus] the operation and maintenance tax
1509	1509	rate that would impose 1.04 [1.08] times the amount of the operation
1510	1510	and maintenance tax imposed by the district in the preceding year on
1511	1511	a residence homestead appraised at the average appraised value of a
1512	1512	residence homestead in the district in that year, disregarding any
1513	1513	homestead exemption available only to disabled persons or persons
1514	1514	65 years of age or older.
1515	1515	(e) Notwithstanding any other provision of this section,
1516	1516	the board may substitute "eight percent" for "four percent" in
1517	1517	Subsection (a) and "1.08" for "1.04" in Subsection (d) if any part
1518	1518	of the district is located in an area declared a disaster area
1519	1519	during the current tax year by the governor or by the president of
1520	1520	the United States.
1521	1521	SECTION 40. The following provisions are repealed:
1522	1522	(1) Section 1063.255, Special District Local Laws
1523	1523	Code;
1524	1524	(2) Section 26.07, Tax Code;
1525	1525	(3) Section 49.236, Water Code, as added by Chapter
1526	1526	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
1527	1527	2003; and
1528	1528	(4) Section 49.2361, Water Code.
1529	1529	SECTION 41. (a) Not later than January 1, 2018, the
1530	1530	comptroller shall appoint the members of an advisory group to
1531	1531	provide to the comptroller advice and assistance regarding the
1532	1532	creation and operation of the property tax database required by
1533	1533	Section 5.092, Tax Code, as added by this Act, and related matters.
1534	1534	The advisory group is composed of 13 members as follows:
1535	1535	(1) one person who is an employee of the office of the
1536	1536	lieutenant governor;
1537	1537	(2) one person who is an employee of the office of the
1538	1538	speaker of the house of representatives;
1539	1539	(3) four persons who are county tax
1540	1540	assessor-collectors;
1541	1541	(4) two persons who are assessors or collectors for
1542	1542	taxing units but are not county tax assessor-collectors;
1543	1543	(5) two persons who are chief appraisers of appraisal
1544	1544	districts;
1545	1545	(6) one person who is a financial officer or auditor of
1546	1546	a municipality;
1547	1547	(7) one person who is a financial officer or auditor of
1548	1548	a county; and
1549	1549	(8) one person who is a representative of water
1550	1550	districts.
1551	1551	(b) The advisory group is abolished and this section expires
1552	1552	July 1, 2019.
1553	1553	SECTION 42. The comptroller shall comply with Sections
1554	1554	5.07(f) and 5.092, Tax Code, as added by this Act, not later than
1555	1555	June 1, 2019.
1556	1556	SECTION 43. (a) Except as provided by Subsections (b) and
1557	1557	(c) of this section, this Act takes effect January 1, 2018.
1558	1558	(b) The following provisions take effect September 1, 2017:
1559	1559	(1) Section 5.091, Tax Code, as amended by this Act;
1560	1560	(2) Section 26.17, Tax Code, as added by this Act; and
1561	1561	(3) Section 41 of this Act.
1562	1562	(c) The following provisions take effect January 1, 2019:
1563	1563	(1) Section 5.07(f), Tax Code, as added by this Act;
1564	1564	(2) Section 5.092, Tax Code, as added by this Act;
1565	1565	(3) Sections 25.19(b) and (i), Tax Code, as amended by
1566	1566	this Act;
1567	1567	(4) Sections 26.04(d-1), (d-2), (d-3), (d-4), and
1568	1568	(e-2), Tax Code, as added by this Act;
1569	1569	(5) Sections 26.04(e-1) and (g), Tax Code, as amended
1570	1570	by this Act;
1571	1571	(6) Sections 26.05(d-1) and (d-2), Tax Code, as added
1572	1572	by this Act; and
1573	1573	(7) Section 26.05(e), Tax Code, as amended by this
1574	1574	Act.