Texas 2017 - 85th Regular

Texas House Bill HB3831 Compare Versions

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

Old	New	Differences
1	1	85R12505 SMH-F
2	2	By: Gutierrez H.B. No. 3831
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the procedure for adopting an ad valorem tax rate that
8	8	exceeds a certain rate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.05(d), Tax Code, is amended to read as
11	11	follows:
12	12	(d) The governing body of a taxing unit other than a school
13	13	district may not adopt a tax rate that exceeds the lower of the
14	14	rollback tax rate or the effective tax rate calculated as provided
15	15	by this chapter until the governing body has provided the notice
16	16	required by Section 26.053 and has held two public hearings on the
17	17	proposed tax rate and [has] otherwise complied with Section 26.06
18	18	and Section 26.065. The governing body of a taxing unit shall
19	19	reduce a tax rate set by law or by vote of the electorate to the
20	20	lower of the rollback tax rate or the effective tax rate and may not
21	21	adopt a higher rate unless it first complies with Section 26.06.
22	22	SECTION 2. Section 26.052(d), Tax Code, is amended to read
23	23	as follows:
24	24	(d) A taxing unit that provides public notice of a proposed
25	25	tax rate under Subsection (c) is exempt from Sections 26.05(d),
26	26	26.053, and 26.06 and is not subject to an injunction under Section
27	27	26.05(e) for failure to comply with Section 26.05(d). A taxing unit
28	28	that provides public notice of a proposed tax rate under Subsection
29	29	(c) may not adopt a tax rate that exceeds the rate set out in the
30	30	notice unless the taxing unit provides additional public notice
31	31	under Subsection (c) of the higher rate or complies with Sections
32	32	26.05(d), 26.053, and 26.06, as applicable, in adopting the higher
33	33	rate.
34	34	SECTION 3. Chapter 26, Tax Code, is amended by adding
35	35	Section 26.053 to read as follows:
36	36	Sec. 26.053. NOTICE OF PROPOSED TAX REVENUE INCREASE. (a)
37	37	Before conducting the first public hearing required by Section
38	38	26.06, the governing body of a taxing unit that proposes to adopt a
39	39	tax rate that exceeds the lower of the effective tax rate or the
40	40	rollback tax rate calculated as provided by this chapter must:
41	41	(1) adopt a resolution indicating each member of the
42	42	governing body who is in favor of the proposed tax rate and each
43	43	member of the governing body who is opposed to the proposed tax
44	44	rate; and
45	45	(2) provide written notice to each property owner in
46	46	the taxing unit of:
47	47	(A) the total amount of tax revenue raised by the
48	48	taxing unit in the preceding tax year;
49	49	(B) the total amount of tax revenue proposed to
50	50	be raised by the taxing unit in the current tax year at the proposed
51	51	tax rate;
52	52	(C) the percentage change in the total amount of
53	53	tax revenue proposed to be raised by the taxing unit from the
54	54	preceding tax year to the current tax year; and
55	55	(D) the name of each member of the governing body
56	56	of the taxing unit who is in favor of the proposed tax rate and each
57	57	member of the governing body who is opposed to the proposed tax
58	58	rate.
59	59	(b) Each taxing unit that is subject to this section is
60	60	responsible for mailing the notice required by Subsection (a)(2) to
61	61	the owners of property in the taxing unit.
62	62	(c) Notwithstanding Subsection (b), at the request of a
63	63	taxing unit that is subject to this section, an appraisal district
64	64	in which the taxing unit participates shall mail the notice
65	65	required by Subsection (a)(2) to the owners of property located in
66	66	the part of the taxing unit that is located in the appraisal
67	67	district. If more than one taxing unit that participates in the
68	68	appraisal district requests that the appraisal district provide the
69	69	notice, the appraisal district may include the owners of property
70	70	in more than one taxing unit in the notice.
71	71	(d) The comptroller shall adopt rules prescribing the form
72	72	and timing of the mailing of the notice.
73	73	SECTION 4. Section 140.010(c), Local Government Code, is
74	74	amended to read as follows:
75	75	(c) A county or municipality that provides notice of the
76	76	county's or municipality's proposed property tax rate in the manner
77	77	provided by this section is exempt from the notice and publication
78	78	requirements of Sections 26.04(e), 26.052, 26.053, and 26.06, Tax
79	79	Code, as applicable, and is not subject to an injunction for failure
80	80	to comply with those requirements.
81	81	SECTION 5. Section 8876.152(a), Special District Local Laws
82	82	Code, is amended to read as follows:
83	83	(a) Sections 26.04, 26.05, 26.053, 26.06, and 26.07, Tax
84	84	Code, do not apply to a tax imposed by the district.
85	85	SECTION 6. This Act applies to the ad valorem tax rate of a
86	86	taxing unit for a tax year beginning on or after the effective date
87	87	of this Act.
88	88	SECTION 7. This Act takes effect January 1, 2018.