Texas 2017 - 85th Regular

Texas House Bill HB1728 Compare Versions

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

Old	New	Differences
1	1	85R1352 SMH-F
2	2	By: Faircloth H.B. No. 1728
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the procedure for the adoption of an ad valorem tax rate
8	8	by certain special districts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.05(a), Tax Code, is amended to read as
11	11	follows:
12	12	(a) The governing body of each taxing unit, before the later
13	13	of September 30 or the 60th day after the date the certified
14	14	appraisal roll is received by the taxing unit, shall adopt a tax
15	15	rate for the current tax year and shall notify the assessor for the
16	16	unit of the rate adopted. The tax rate consists of two components,
17	17	each of which must be approved separately. The components are:
18	18	(1) for a taxing unit other than a school district, the
19	19	rate that, if applied to the total taxable value, will impose the
20	20	total amount calculated [published] under Section 26.04(e)(3)(C),
21	21	less any amount of additional sales and use tax revenue that will be
22	22	used to pay debt service, or, for a school district, the rate
23	23	calculated under Section 44.004(c)(5)(A)(ii)(b), Education Code;
24	24	and
25	25	(2) the rate that, if applied to the total taxable
26	26	value, will impose the amount of taxes needed to fund maintenance
27	27	and operation expenditures of the unit for the next year.
28	28	SECTION 2. Section 49.107(g), Water Code, is amended to
29	29	read as follows:
30	30	(g) Except as provided by Section 49.236 of this code,
31	31	Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [26.04, 26.05],
32	32	and 26.07, Tax Code, do not apply to a tax levied and collected
33	33	under this section or an ad valorem tax levied and collected for the
34	34	payment of the interest on and principal of bonds issued by a
35	35	district.
36	36	SECTION 3. Section 49.108(f), Water Code, is amended to
37	37	read as follows:
38	38	(f) Except as provided by Section 49.236 of this code,
39	39	Sections 26.04(c)-(j), 26.05(b), (c), (d), and (e) [26.04, 26.05],
40	40	and 26.07, Tax Code, do not apply to a tax levied and collected for
41	41	payments made under a contract approved in accordance with this
42	42	section.
43	43	SECTION 4. Sections 49.236(a) and (d), Water Code, as added
44	44	by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
45	45	Session, 2003, are amended to read as follows:
46	46	(a) Before the board adopts an ad valorem tax rate for the
47	47	district for debt service, operation and maintenance purposes, or
48	48	contract purposes, the board shall give notice of each meeting of
49	49	the board at which the adoption of a tax rate will be considered.
50	50	The notice must:
51	51	(1) contain a statement in substantially the following
52	52	form:
53	53	"NOTICE OF PUBLIC HEARING ON TAX RATE
54	54	"The (name of the district) will hold a public hearing on a
55	55	proposed tax rate for the tax year (year of tax levy) on (date and
56	56	time) at (meeting place). Your individual taxes may increase or
57	57	decrease, depending on the change in the taxable value of your
58	58	property in relation to the change in taxable value of all other
59	59	property and the tax rate that is adopted.
60	60	"(Names of all board members and, if a vote was taken, an
61	61	indication of how each voted on the proposed tax rate and an
62	62	indication of any absences.)";
63	63	(2) contain the following information:
64	64	(A) the district's total adopted tax rate for the
65	65	preceding year and the proposed tax rate, expressed as an amount per
66	66	$100;
67	67	(B) the difference, expressed as an amount per
68	68	$100 and as a percent increase or decrease, as applicable, in the
69	69	proposed tax rate compared to the adopted tax rate for the preceding
70	70	year;
71	71	(C) the average appraised value of a residence
72	72	homestead in the district in the preceding year and in the current
73	73	year; the district's total homestead exemption, other than an
74	74	exemption available only to disabled persons or persons 65 years of
75	75	age or older, applicable to that appraised value in each of those
76	76	years; and the average taxable value of a residence homestead in
77	77	the district in each of those years, disregarding any homestead
78	78	exemption available only to disabled persons or persons 65 years of
79	79	age or older;
80	80	(D) the amount of tax that would have been
81	81	imposed by the district in the preceding year on a residence
82	82	homestead appraised at the average appraised value of a residence
83	83	homestead in that year, disregarding any homestead exemption
84	84	available only to disabled persons or persons 65 years of age or
85	85	older;
86	86	(E) the amount of tax that would be imposed by the
87	87	district in the current year on a residence homestead appraised at
88	88	the average appraised value of a residence homestead in that year,
89	89	disregarding any homestead exemption available only to disabled
90	90	persons or persons 65 years of age or older, if the proposed tax
91	91	rate is adopted; [and]
92	92	(F) the difference between the amounts of tax
93	93	calculated under Paragraphs (D) and (E), expressed in dollars and
94	94	cents and described as the annual percentage increase or decrease,
95	95	as applicable, in the tax to be imposed by the district on the
96	96	average residence homestead in the district in the current year if
97	97	the proposed tax rate is adopted; and
98	98	(G) if the proposed combined debt service,
99	99	operation and maintenance, and contract tax rate exceeds the
100	100	rollback tax rate, a description of the purpose of the proposed tax
101	101	increase; and
102	102	(3) contain a statement in substantially the following
103	103	form:
104	104	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
105	105	"If operation and maintenance taxes on the average residence
106	106	homestead increase by more than eight percent, the qualified voters
107	107	of the district by petition may require that an election be held to
108	108	determine whether to reduce the combined debt service, operation
109	109	and maintenance, and contract tax rate to the rollback tax rate
110	110	under Section 49.236(d), Water Code."
111	111	(d) If the governing body of a district adopts a combined
112	112	debt service, operation and maintenance, and contract tax rate that
113	113	exceeds the rollback tax rate [would impose more than 1.08 times the
114	114	amount of tax imposed by the district in the preceding year on a
115	115	residence homestead appraised at the average appraised value of a
116	116	residence homestead in the district in that year, disregarding any
117	117	homestead exemption available only to disabled persons or persons
118	118	65 years of age or older], the qualified voters of the district by
119	119	petition may require that an election be held to determine whether
120	120	or not to reduce the tax rate adopted for the current year to the
121	121	rollback tax rate in accordance with the procedures provided by
122	122	Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of
123	123	Sections 26.07(b)-(g) and this section [subsection], the rollback
124	124	tax rate is the sum of the following tax rates:
125	125	(1) the current year's debt service tax rate;
126	126	(2) the current year's [and] contract tax rate; and
127	127	(3) [rates plus] the operation and maintenance tax
128	128	rate that would impose 1.08 times the amount of the operation and
129	129	maintenance tax imposed by the district in the preceding year on a
130	130	residence homestead appraised at the average appraised value of a
131	131	residence homestead in the district in that year, disregarding any
132	132	homestead exemption available only to disabled persons or persons
133	133	65 years of age or older.
134	134	SECTION 5. Section 8876.152(b), Special District Local Laws
135	135	Code, is amended to read as follows:
136	136	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
137	137	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
138	138	78th Legislature, Regular Session, 2003, applies] to the district.
139	139	SECTION 6. The following provisions are repealed:
140	140	(1) Section 49.236, Water Code, as added by Chapter
141	141	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
142	142	2003; and
143	143	(2) Section 49.2361, Water Code.
144	144	SECTION 7. (a) The change in law made by this Act applies to
145	145	the ad valorem tax rate of a district as defined by Section 49.001,
146	146	Water Code, beginning with the 2017 tax year, except as provided by
147	147	Subsection (b) of this section.
148	148	(b) If the governing body of a district adopted an ad
149	149	valorem tax rate for the district for the 2017 tax year before the
150	150	effective date of this Act, the change in law made by this Act
151	151	applies to the ad valorem tax rate of that district beginning with
152	152	the 2018 tax year, and the law in effect when the tax rate was
153	153	adopted applies to the 2017 tax year with respect to that district.
154	154	SECTION 8. This Act takes effect immediately if it receives
155	155	a vote of two-thirds of all the members elected to each house, as
156	156	provided by Section 39, Article III, Texas Constitution. If this
157	157	Act does not receive the vote necessary for immediate effect, this
158	158	Act takes effect September 1, 2017.