85R12505 SMH-F
By: Gutierrez H.B. No. 3831
A BILL TO BE ENTITLED
AN ACT
relating to the procedure for adopting an ad valorem tax rate that
exceeds a certain rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.05(d), Tax Code, is amended to read as
follows:
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that exceeds the lower of the
rollback tax rate or the effective tax rate calculated as provided
by this chapter until the governing body has provided the notice
required by Section 26.053 and has held two public hearings on the
proposed tax rate and [has] otherwise complied with Section 26.06
and Section 26.065. The governing body of a taxing unit shall
reduce a tax rate set by law or by vote of the electorate to the
lower of the rollback tax rate or the effective tax rate and may not
adopt a higher rate unless it first complies with Section 26.06.
SECTION 2. Section 26.052(d), Tax Code, is amended to read
as follows:
(d) A taxing unit that provides public notice of a proposed
tax rate under Subsection (c) is exempt from Sections 26.05(d),
26.053, and 26.06 and is not subject to an injunction under Section
26.05(e) for failure to comply with Section 26.05(d). A taxing unit
that provides public notice of a proposed tax rate under Subsection
(c) may not adopt a tax rate that exceeds the rate set out in the
notice unless the taxing unit provides additional public notice
under Subsection (c) of the higher rate or complies with Sections
26.05(d), 26.053, and 26.06, as applicable, in adopting the higher
rate.
SECTION 3. Chapter 26, Tax Code, is amended by adding
Section 26.053 to read as follows:
Sec. 26.053. NOTICE OF PROPOSED TAX REVENUE INCREASE. (a)
Before conducting the first public hearing required by Section
26.06, the governing body of a taxing unit that proposes to adopt a
tax rate that exceeds the lower of the effective tax rate or the
rollback tax rate calculated as provided by this chapter must:
(1) adopt a resolution indicating each member of the
governing body who is in favor of the proposed tax rate and each
member of the governing body who is opposed to the proposed tax
rate; and
(2) provide written notice to each property owner in
the taxing unit of:
(A) the total amount of tax revenue raised by the
taxing unit in the preceding tax year;
(B) the total amount of tax revenue proposed to
be raised by the taxing unit in the current tax year at the proposed
tax rate;
(C) the percentage change in the total amount of
tax revenue proposed to be raised by the taxing unit from the
preceding tax year to the current tax year; and
(D) the name of each member of the governing body
of the taxing unit who is in favor of the proposed tax rate and each
member of the governing body who is opposed to the proposed tax
rate.
(b) Each taxing unit that is subject to this section is
responsible for mailing the notice required by Subsection (a)(2) to
the owners of property in the taxing unit.
(c) Notwithstanding Subsection (b), at the request of a
taxing unit that is subject to this section, an appraisal district
in which the taxing unit participates shall mail the notice
required by Subsection (a)(2) to the owners of property located in
the part of the taxing unit that is located in the appraisal
district. If more than one taxing unit that participates in the
appraisal district requests that the appraisal district provide the
notice, the appraisal district may include the owners of property
in more than one taxing unit in the notice.
(d) The comptroller shall adopt rules prescribing the form
and timing of the mailing of the notice.
SECTION 4. Section 140.010(c), Local Government Code, is
amended to read as follows:
(c) A county or municipality that provides notice of the
county's or municipality's proposed property tax rate in the manner
provided by this section is exempt from the notice and publication
requirements of Sections 26.04(e), 26.052, 26.053, and 26.06, Tax
Code, as applicable, and is not subject to an injunction for failure
to comply with those requirements.
SECTION 5. Section 8876.152(a), Special District Local Laws
Code, is amended to read as follows:
(a) Sections 26.04, 26.05, 26.053, 26.06, and 26.07, Tax
Code, do not apply to a tax imposed by the district.
SECTION 6. This Act applies to the ad valorem tax rate of a
taxing unit for a tax year beginning on or after the effective date
of this Act.
SECTION 7. This Act takes effect January 1, 2018.