Texas 2017 - 85th 1st C.S.

Texas House Bill HB220 Compare Versions

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

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1	1	85S10584 SMH-F
2	2	By: Shaheen H.B. No. 220
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of the ad valorem rollback tax rate of a
8	8	taxing unit and voter approval of a proposed tax rate that exceeds
9	9	the rollback tax rate.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 26.012, Tax Code, is amended by adding
12	12	Subdivision (18) to read as follows:
13	13	(18) "Small taxing unit" means a taxing unit, other
14	14	than a school district, for which the maintenance and operations
15	15	tax rate proposed for the current tax year would impose taxes of $10
16	16	million or less when applied to the current total value for the
17	17	taxing unit.
18	18	SECTION 2. Section 26.04, Tax Code, is amended by amending
19	19	Subsection (c) and adding Subsection (c-1) to read as follows:
20	20	(c) An officer or employee designated by the governing body
21	21	shall calculate the effective tax rate and the rollback tax rate for
22	22	the unit, where:
23	23	(1) "Effective tax rate" means a rate expressed in
24	24	dollars per $100 of taxable value calculated according to the
25	25	following formula:
26	26	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
27	27	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
28	28	; and
29	29	(2) "Rollback tax rate" means a rate expressed in
30	30	dollars per $100 of taxable value calculated according to the
31	31	following applicable formula:
32	32	(A) for a small taxing unit:
33	33	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
34	34	OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
35	35	; or
36	36	(B) for a taxing unit other than a small taxing
37	37	unit:
38	38	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
39	39	OPERATIONS RATE x 1.05) + CURRENT DEBT RATE
40	40	(c-1) Notwithstanding any other provision of this section,
41	41	the governing body of a taxing unit other than a small taxing unit
42	42	may direct the designated officer or employee to calculate the
43	43	rollback tax rate of the unit according to the formula applicable to
44	44	a small taxing unit if any part of the unit is located in an area
45	45	declared a disaster area during the current tax year by the governor
46	46	or by the president of the United States.
47	47	SECTION 3. Section 26.041, Tax Code, is amended by amending
48	48	Subsections (a), (b), and (c) and adding Subsection (c-1) to read as
49	49	follows:
50	50	(a) In the first year in which an additional sales and use
51	51	tax is required to be collected, the effective tax rate and rollback
52	52	tax rate for the unit are calculated according to the following
53	53	formulas:
54	54	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
55	55	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
56	56	SALES TAX GAIN RATE
57	57	[and]
58	58	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = (EFFECTIVE
59	59	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
60	60	RATE - SALES TAX GAIN RATE
61	61	and
62	62	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
63	63	TAXING UNIT = (EFFECTIVE MAINTENANCE AND OPERATIONS
64	64	RATE x 1.05) + CURRENT DEBT RATE - SALES TAX GAIN RATE
65	65	where "sales tax gain rate" means a number expressed in dollars per
66	66	$100 of taxable value, calculated by dividing the revenue that will
67	67	be generated by the additional sales and use tax in the following
68	68	year as calculated under Subsection (d) [of this section] by the
69	69	current total value.
70	70	(b) Except as provided by Subsections (a) and (c) [of this
71	71	section], in a year in which a taxing unit imposes an additional
72	72	sales and use tax, the rollback tax rate for the unit is calculated
73	73	according to the following applicable formula, regardless of
74	74	whether the unit levied a property tax in the preceding year:
75	75	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
76	76	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
77	77	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT
78	78	DEBT RATE - SALES TAX REVENUE RATE)
79	79	or
80	80	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
81	81	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
82	82	EXPENSE x 1.05) / (CURRENT TOTAL VALUE - NEW PROPERTY
83	83	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
84	84	where "last year's maintenance and operations expense" means the
85	85	amount spent for maintenance and operations from property tax and
86	86	additional sales and use tax revenues in the preceding year, and
87	87	"sales tax revenue rate" means a number expressed in dollars per
88	88	$100 of taxable value, calculated by dividing the revenue that will
89	89	be generated by the additional sales and use tax in the current year
90	90	as calculated under Subsection (d) [of this section] by the current
91	91	total value.
92	92	(c) In a year in which a taxing unit that has been imposing
93	93	an additional sales and use tax ceases to impose an additional sales
94	94	and use tax, the effective tax rate and rollback tax rate for the
95	95	unit are calculated according to the following formulas:
96	96	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
97	97	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
98	98	SALES TAX LOSS RATE
99	99	[and]
100	100	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
101	101	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
102	102	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT
103	103	DEBT RATE
104	104	and
105	105	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
106	106	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
107	107	EXPENSE x 1.05) / (CURRENT TOTAL VALUE - NEW PROPERTY
108	108	VALUE)] + CURRENT DEBT RATE
109	109	where "sales tax loss rate" means a number expressed in dollars per
110	110	$100 of taxable value, calculated by dividing the amount of sales
111	111	and use tax revenue generated in the last four quarters for which
112	112	the information is available by the current total value and "last
113	113	year's maintenance and operations expense" means the amount spent
114	114	for maintenance and operations from property tax and additional
115	115	sales and use tax revenues in the preceding year.
116	116	(c-1) Notwithstanding any other provision of this section,
117	117	the governing body of a taxing unit other than a small taxing unit
118	118	may direct the designated officer or employee to calculate the
119	119	rollback tax rate of the unit according to the formula applicable to
120	120	a small taxing unit if any part of the unit is located in an area
121	121	declared a disaster area during the current tax year by the governor
122	122	or by the president of the United States.
123	123	SECTION 4. The heading to Section 26.043, Tax Code, is
124	124	amended to read as follows:
125	125	Sec. 26.043. ROLLBACK AND EFFECTIVE TAX RATES [RATE] IN
126	126	CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
127	127	SECTION 5. The heading to Section 26.07, Tax Code, is
128	128	amended to read as follows:
129	129	Sec. 26.07. ELECTION TO REDUCE TAX RATE OF SMALL TAXING UNIT
130	130	[REPEAL INCREASE].
131	131	SECTION 6. Section 26.07(a), Tax Code, is amended to read as
132	132	follows:
133	133	(a) If the governing body of a small taxing unit [other than
134	134	a school district] adopts a tax rate that exceeds the taxing unit's
135	135	rollback tax rate calculated as provided by this chapter, the
136	136	qualified voters of the taxing unit by petition may require that an
137	137	election be held to determine whether or not to reduce the tax rate
138	138	adopted for the current year to the rollback tax rate calculated as
139	139	provided by this chapter.
140	140	SECTION 7. The heading to Section 26.08, Tax Code, is
141	141	amended to read as follows:
142	142	Sec. 26.08. ELECTION TO APPROVE TAX RATE OF TAXING UNIT
143	143	OTHER THAN SMALL TAXING UNIT [RATIFY SCHOOL TAXES].
144	144	SECTION 8. Section 26.08, Tax Code, is amended by amending
145	145	Subsections (a), (b), (d), (d-1), (d-2), (e), and (h) and adding
146	146	Subsection (r) to read as follows:
147	147	(a) If the governing body of a taxing unit other than a small
148	148	taxing unit [school district] adopts a tax rate that exceeds the
149	149	taxing unit's [district's] rollback tax rate, the registered voters
150	150	of the taxing unit [district] at an election held for that purpose
151	151	must determine whether to approve the adopted tax rate. When
152	152	increased expenditure of money by a taxing unit [school district]
153	153	is necessary to respond to a disaster, including a tornado,
154	154	hurricane, flood, or other calamity, but not including a drought,
155	155	that has impacted the taxing unit [a school district] and the
156	156	governor has requested federal disaster assistance for the area in
157	157	which the taxing unit [school district] is located, an election is
158	158	not required under this section to approve the tax rate adopted by
159	159	the governing body for the year following the year in which the
160	160	disaster occurs.
161	161	(b) The governing body shall order that the election be held
162	162	in the taxing unit [school district] on a date not less than 30 or
163	163	more than 90 days after the day on which it adopted the tax rate.
164	164	Section 41.001, Election Code, does not apply to the election
165	165	unless a date specified by that section falls within the time
166	166	permitted by this section. At the election, the ballots shall be
167	167	prepared to permit voting for or against the proposition:
168	168	"Approving the ad valorem tax rate of $_____ per $100 valuation in
169	169	(name of taxing unit [school district]) for the current year, a rate
170	170	that is $_____ higher per $100 valuation than the [school district]
171	171	rollback tax rate of (name of taxing unit), for the purpose of
172	172	(description of purpose of increase)." The ballot proposition must
173	173	include the adopted tax rate and the difference between that rate
174	174	and the rollback tax rate in the appropriate places.
175	175	(d) If the proposition is not approved as provided by
176	176	Subsection (c), the governing body may not adopt a tax rate for the
177	177	taxing unit [school district] for the current year that exceeds the
178	178	taxing unit's [school district's] rollback tax rate.
179	179	(d-1) If, after tax bills for the taxing unit [school
180	180	district] have been mailed, a proposition to approve the taxing
181	181	unit's [school district's] adopted tax rate is not approved by the
182	182	voters of the taxing unit [district] at an election held under this
183	183	section, on subsequent adoption of a new tax rate by the governing
184	184	body of the taxing unit [district], the assessor for the taxing unit
185	185	[school] shall prepare and mail corrected tax bills. The assessor
186	186	shall include with each bill a brief explanation of the reason for
187	187	and effect of the corrected bill. The date on which the taxes
188	188	become delinquent for the year is extended by a number of days equal
189	189	to the number of days between the date the first tax bills were sent
190	190	and the date the corrected tax bills were sent.
191	191	(d-2) If a property owner pays taxes calculated using the
192	192	originally adopted tax rate of the taxing unit [school district]
193	193	and the proposition to approve the adopted tax rate is not approved
194	194	by the voters, the taxing unit [school district] shall refund the
195	195	difference between the amount of taxes paid and the amount due under
196	196	the subsequently adopted rate if the difference between the amount
197	197	of taxes paid and the amount due under the subsequent rate is $1 or
198	198	more. If the difference between the amount of taxes paid and the
199	199	amount due under the subsequent rate is less than $1, the taxing
200	200	unit [school district] shall refund the difference on request of
201	201	the taxpayer. An application for a refund of less than $1 must be
202	202	made within 90 days after the date the refund becomes due or the
203	203	taxpayer forfeits the right to the refund.
204	204	(e) For purposes of this section, local tax funds dedicated
205	205	to a junior college district under Section 45.105(e), Education
206	206	Code, shall be eliminated from the calculation of the tax rate
207	207	adopted by the governing body of a [the] school district. However,
208	208	the funds dedicated to the junior college district are subject to
209	209	Section 26.085.
210	210	(h) For purposes of this section, increases in taxable
211	211	values and tax levies occurring within a reinvestment zone under
212	212	Chapter 311 (Tax Increment Financing Act), in which a school [the]
213	213	district is a participant, shall be eliminated from the calculation
214	214	of the tax rate adopted by the governing body of the school
215	215	district.
216	216	(r) Except as otherwise expressly provided by law, this
217	217	section does not apply to a tax imposed by a taxing unit if a
218	218	provision of an uncodified local or special law enacted by the 85th
219	219	Legislature, Regular Session, 2017, or by an earlier legislature
220	220	provides that Section 26.07 does not apply to a tax imposed by the
221	221	taxing unit.
222	222	SECTION 9. Section 26.16(d), Tax Code, is amended to read as
223	223	follows:
224	224	(d) The county assessor-collector shall post immediately
225	225	below the table prescribed by Subsection (c) the following
226	226	statement:
227	227	"The county is providing this table of property tax rate
228	228	information as a service to the residents of the county. Each
229	229	individual taxing unit is responsible for calculating the property
230	230	tax rates listed in this table pertaining to that taxing unit and
231	231	providing that information to the county.
232	232	"The adopted tax rate is the tax rate adopted by the governing
233	233	body of a taxing unit.
234	234	"The maintenance and operations rate is the component of the
235	235	adopted tax rate of a taxing unit that will impose the amount of
236	236	taxes needed to fund maintenance and operation expenditures of the
237	237	unit for the following year.
238	238	"The debt rate is the component of the adopted tax rate of a
239	239	taxing unit that will impose the amount of taxes needed to fund the
240	240	unit's debt service for the following year.
241	241	"The effective tax rate is the tax rate that would generate
242	242	the same amount of revenue in the current tax year as was generated
243	243	by a taxing unit's adopted tax rate in the preceding tax year from
244	244	property that is taxable in both the current tax year and the
245	245	preceding tax year.
246	246	"The effective maintenance and operations rate is the tax
247	247	rate that would generate the same amount of revenue for maintenance
248	248	and operations in the current tax year as was generated by a taxing
249	249	unit's maintenance and operations rate in the preceding tax year
250	250	from property that is taxable in both the current tax year and the
251	251	preceding tax year.
252	252	"The rollback tax rate is the highest tax rate a taxing unit
253	253	may adopt before requiring voter approval at an election. In the
254	254	case of a small taxing unit [other than a school district], the
255	255	voters by petition may require that a rollback election be held if
256	256	the unit adopts a tax rate in excess of the unit's rollback tax
257	257	rate. In the case of a taxing unit other than a small taxing unit
258	258	[school district], an election will automatically be held if the
259	259	unit [district] wishes to adopt a tax rate in excess of the unit's
260	260	[district's] rollback tax rate."
261	261	SECTION 10. Sections 31.12(a) and (b), Tax Code, as amended
262	262	by S.B. 2242, Acts of the 85th Legislature, Regular Session, 2017,
263	263	are amended to read as follows:
264	264	(a) If a refund of a tax provided by Section 11.431(b),
265	265	26.07(g), 26.08(d-2), 26.15(f), 31.11, 31.111, or 31.112 is paid on
266	266	or before the 60th day after the date the liability for the refund
267	267	arises, no interest is due on the amount refunded. If not paid on or
268	268	before that 60th day, the amount of the tax to be refunded accrues
269	269	interest at a rate of one percent for each month or part of a month
270	270	that the refund is unpaid, beginning with the date on which the
271	271	liability for the refund arises.
272	272	(b) For purposes of this section, liability for a refund
273	273	arises:
274	274	(1) if the refund is required by Section 11.431(b), on
275	275	the date the chief appraiser notifies the collector for the unit of
276	276	the approval of the late homestead exemption;
277	277	(2) if the refund is required by Section 26.07(g), on
278	278	the date the results of the election to reduce the tax rate are
279	279	certified;
280	280	(3) if the refund is required by Section 26.08(d-2),
281	281	on the date the subsequent tax rate is adopted;
282	282	(4) if the refund is required by Section 26.15(f):
283	283	(A) for a correction to the tax roll made under
284	284	Section 26.15(b), on the date the change in the tax roll is
285	285	certified to the assessor for the taxing unit under Section 25.25;
286	286	or
287	287	(B) for a correction to the tax roll made under
288	288	Section 26.15(c), on the date the change in the tax roll is ordered
289	289	by the governing body of the taxing unit;
290	290	(5) [(4)] if the refund is required by Section 31.11,
291	291	on the date the auditor for the taxing unit determines that the
292	292	payment was erroneous or excessive or, if the amount of the refund
293	293	exceeds the applicable amount specified by Section 31.11(a), on the
294	294	date the governing body of the unit approves the refund;
295	295	(6) [(5)] if the refund is required by Section 31.111,
296	296	on the date the collector for the taxing unit determines that the
297	297	payment was erroneous; or
298	298	(7) [(6)] if the refund is required by Section 31.112,
299	299	on the date required by Section 31.112(d) or (e), as applicable.
300	300	SECTION 11. Section 33.08(b), Tax Code, is amended to read
301	301	as follows:
302	302	(b) The governing body of the taxing unit or appraisal
303	303	district, in the manner required by law for official action, may
304	304	provide that taxes that become delinquent on or after June 1 under
305	305	Section 26.07(f), 26.08(d-1), 26.15(e), 31.03, 31.031, 31.032,
306	306	31.04, or 42.42 incur an additional penalty to defray costs of
307	307	collection. The amount of the penalty may not exceed the amount of
308	308	the compensation specified in the applicable contract with an
309	309	attorney under Section 6.30 to be paid in connection with the
310	310	collection of the delinquent taxes.
311	311	SECTION 12. Section 130.016(b), Education Code, is amended
312	312	to read as follows:
313	313	(b) If the board of trustees of an independent school
314	314	district that divests itself of the management, control, and
315	315	operation of a junior college district under this section or under
316	316	Section 130.017 [of this code] was authorized by [Subsection (e)
317	317	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
318	318	this code] to dedicate a portion of its tax levy to the junior
319	319	college district before the divestment, the junior college district
320	320	may levy an ad valorem tax from and after the divestment. In the
321	321	first two years in which the junior college district levies an ad
322	322	valorem tax, the tax rate adopted by the governing body may not
323	323	exceed the rate that, if applied to the total taxable value
324	324	submitted to the governing body under Section 26.04, Tax Code,
325	325	would impose an amount equal to the amount of taxes of the school
326	326	district dedicated to the junior college under [Subsection (e) of]
327	327	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
328	328	in the last dedication before the divestment. In subsequent years,
329	329	the tax rate of the junior college district is subject to Section
330	330	26.07 or 26.08, Tax Code, as applicable.
331	331	SECTION 13. Sections 281.124(d) and (e), Health and Safety
332	332	Code, are amended to read as follows:
333	333	(d) If a majority of the votes cast in the election favor the
334	334	proposition, the tax rate for the specified tax year is the rate
335	335	approved by the voters, and that rate is not subject to a rollback
336	336	election under Section 26.07 or 26.08, Tax Code. The board shall
337	337	adopt the tax rate as provided by Chapter 26, Tax Code, as
338	338	applicable.
339	339	(e) If the proposition is not approved as provided by
340	340	Subsection (c), the board may not adopt a tax rate for the district
341	341	for the specified tax year that exceeds the rate that was not
342	342	approved, and Section 26.07 or 26.08, Tax Code, as applicable,
343	343	applies to the adopted rate if that rate exceeds the district's
344	344	rollback tax rate.
345	345	SECTION 14. Section 140.010, Local Government Code, is
346	346	amended by amending Subsections (a), (e), (f), and (g) and adding
347	347	Subsection (e-1) to read as follows:
348	348	(a) In this section:
349	349	(1) "Effective[, "effective] tax rate" and "rollback
350	350	tax rate" mean the effective tax rate and rollback tax rate of a
351	351	county or municipality, as applicable, as calculated under Chapter
352	352	26, Tax Code.
353	353	(2) "Small taxing unit" has the meaning assigned by
354	354	Section 26.012, Tax Code.
355	355	(e) A county or municipality that is a small taxing unit and
356	356	that proposes a property tax rate that exceeds the lower of the
357	357	effective tax rate or the rollback tax rate shall provide the
358	358	following notice:
359	359	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
360	360	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
361	361	"A tax rate of $_____ per $100 valuation has been proposed for
362	362	adoption by the governing body of (insert name of county or
363	363	municipality). This rate exceeds the lower of the effective or
364	364	rollback tax rate, and state law requires that two public hearings
365	365	be held by the governing body before adopting the proposed tax rate.
366	366	The governing body of (insert name of county or municipality)
367	367	proposes to use revenue attributable to the tax rate increase for
368	368	the purpose of (description of purpose of increase).
369	369	PROPOSED TAX RATE$______ per $100
370	370	PRECEDING YEAR'S TAX RATE$______ per $100
371	371	EFFECTIVE TAX RATE$______ per $100
372	372	ROLLBACK TAX RATE$______ per $100
373	373	"The effective tax rate is the total tax rate needed to raise the
374	374	same amount of property tax revenue for (insert name of county or
375	375	municipality) from the same properties in both the (insert
376	376	preceding tax year) tax year and the (insert current tax year) tax
377	377	year.
378	378	"The rollback tax rate is the highest tax rate that (insert name of
379	379	county or municipality) may adopt before the voters are entitled to
380	380	petition for an election to limit the rate that may be approved to
381	381	the rollback tax rate.
382	382	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
383	383	FOLLOWS:
384	384	property tax amount = (rate) x (taxable value of your property) /
385	385	100
386	386	"For assistance or detailed information about tax calculations,
387	387	please contact:
388	388	(insert name of county or municipal tax assessor-collector)
389	389	(insert name of county or municipality) tax
390	390	assessor-collector
391	391	(insert address)
392	392	(insert telephone number)
393	393	(insert e-mail address)
394	394	(insert Internet website address, if applicable)
395	395	"You are urged to attend and express your views at the following
396	396	public hearings on the proposed tax rate:
397	397	First Hearing: (insert date and time) at (insert location of
398	398	meeting).
399	399	Second Hearing: (insert date and time) at (insert location
400	400	of meeting)."
401	401	(e-1) A county or municipality that is not a small taxing
402	402	unit and that proposes a property tax rate that exceeds the lower of
403	403	the effective tax rate or the rollback tax rate shall provide the
404	404	following notice:
405	405	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
406	406	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
407	407	"A tax rate of $_____ per $100 valuation has been proposed for
408	408	adoption by the governing body of (insert name of county or
409	409	municipality). This rate exceeds the lower of the effective or
410	410	rollback tax rate, and state law requires that two public hearings
411	411	be held by the governing body before adopting the proposed tax rate.
412	412	The governing body of (insert name of county or municipality)
413	413	proposes to use revenue attributable to the tax rate increase for
414	414	the purpose of (description of purpose of increase).
415	415	PROPOSED TAX RATE$______ per $100
416	416	PRECEDING YEAR'S TAX RATE$______ per $100
417	417	EFFECTIVE TAX RATE$______ per $100
418	418	ROLLBACK TAX RATE$______ per $100
419	419	"The effective tax rate is the total tax rate needed to raise the
420	420	same amount of property tax revenue for (insert name of county or
421	421	municipality) from the same properties in both the (insert
422	422	preceding tax year) tax year and the (insert current tax year) tax
423	423	year.
424	424	"The rollback tax rate is the highest tax rate that (insert name of
425	425	county or municipality) may adopt before the (insert "county" or
426	426	"city") is required to hold an election to limit the rate that may
427	427	be approved to the rollback tax rate.
428	428	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
429	429	FOLLOWS:
430	430	property tax amount = (rate) x (taxable value of your property) /
431	431	100
432	432	"For assistance or detailed information about tax calculations,
433	433	please contact:
434	434	(insert name of county or municipal tax assessor-collector)
435	435	(insert name of county or municipality) tax
436	436	assessor-collector
437	437	(insert address)
438	438	(insert telephone number)
439	439	(insert e-mail address)
440	440	(insert Internet website address, if applicable)
441	441	"You are urged to attend and express your views at the following
442	442	public hearings on the proposed tax rate:
443	443	First Hearing: (insert date and time) at (insert location of
444	444	meeting).
445	445	Second Hearing: (insert date and time) at (insert location
446	446	of meeting)."
447	447	(f) A county or municipality shall:
448	448	(1) provide the notice required by Subsection (d),
449	449	[or] (e), or (e-1), as applicable, not later than the later of
450	450	September 1 or the 30th day after the first date that the taxing
451	451	unit has received each applicable certified appraisal roll by:
452	452	(A) publishing the notice in a newspaper having
453	453	general circulation in:
454	454	(i) the county, in the case of notice
455	455	published by a county; or
456	456	(ii) the county in which the municipality
457	457	is located or primarily located, in the case of notice published by
458	458	a municipality; or
459	459	(B) mailing the notice to each property owner in:
460	460	(i) the county, in the case of notice
461	461	provided by a county; or
462	462	(ii) the municipality, in the case of
463	463	notice provided by a municipality; and
464	464	(2) post the notice on the Internet website of the
465	465	county or municipality, if applicable, beginning not later than the
466	466	later of September 1 or the 30th day after the first date that the
467	467	taxing unit has received each applicable certified appraisal roll
468	468	and continuing until the county or municipality adopts a tax rate.
469	469	(g) If the notice required by Subsection (d), [or] (e), or
470	470	(e-1) is published in a newspaper:
471	471	(1) the notice may not be smaller than one-quarter
472	472	page of a standard-size or a tabloid-size newspaper; and
473	473	(2) the headline on the notice must be in 24-point or
474	474	larger type.
475	475	SECTION 15. Section 1122.2522, Special District Local Laws
476	476	Code, is amended by amending Subsection (a) and adding Subsection
477	477	(a-1) to read as follows:
478	478	(a) If in any year the board adopts a tax rate that exceeds
479	479	the rollback tax rate calculated as provided by Chapter 26, Tax
480	480	Code, and the district is a small taxing unit as defined by Section
481	481	26.012 of that code, the qualified voters of the district by
482	482	petition may require that an election be held to determine whether
483	483	or not to reduce the tax rate adopted by the board for that year to
484	484	the rollback tax rate.
485	485	(a-1) If in any year the board adopts a tax rate that exceeds
486	486	the rollback tax rate calculated as provided by Chapter 26, Tax
487	487	Code, and the district is not a small taxing unit as defined by
488	488	Section 26.012 of that code, an election must be held to determine
489	489	whether or not to approve the tax rate adopted by the board for that
490	490	year.
491	491	SECTION 16. Sections 3828.157 and 8876.152, Special
492	492	District Local Laws Code, are amended to read as follows:
493	493	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
494	494	PROVISIONS. Sections 26.04, 26.05, [and] 26.07, and 26.08, Tax
495	495	Code, do not apply to a tax imposed under Section 3828.153 or
496	496	3828.156.
497	497	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
498	498	(a) Sections 26.04, 26.05, 26.06, [and] 26.07, and 26.08, Tax Code,
499	499	do not apply to a tax imposed by the district.
500	500	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
501	501	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
502	502	78th Legislature, Regular Session, 2003, applies] to the district.
503	503	SECTION 17. Section 49.107(g), Water Code, is amended to
504	504	read as follows:
505	505	(g) Sections 26.04, 26.05, 26.06, [and] 26.07, and 26.08,
506	506	Tax Code, do not apply to a tax levied and collected under this
507	507	section or an ad valorem tax levied and collected for the payment of
508	508	the interest on and principal of bonds issued by a district.
509	509	SECTION 18. Section 49.108(f), Water Code, is amended to
510	510	read as follows:
511	511	(f) Sections 26.04, 26.05, 26.06, [and] 26.07, and 26.08,
512	512	Tax Code, do not apply to a tax levied and collected for payments
513	513	made under a contract approved in accordance with this section.
514	514	SECTION 19. Section 49.236, Water Code, as added by Chapter
515	515	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
516	516	2003, is amended by amending Subsections (a) and (d) and adding
517	517	Subsections (e), (f), (g), (h), (i), (j), (k), (l), and (m) to read
518	518	as follows:
519	519	(a) Before the board adopts an ad valorem tax rate for the
520	520	district for debt service, operation and maintenance purposes, or
521	521	contract purposes, the board shall give notice of each meeting of
522	522	the board at which the adoption of a tax rate will be considered.
523	523	The notice must:
524	524	(1) contain a statement in substantially the following
525	525	form:
526	526	"NOTICE OF PUBLIC HEARING ON TAX RATE
527	527	"The (name of the district) will hold a public hearing on a
528	528	proposed tax rate for the tax year (year of tax levy) on (date and
529	529	time) at (meeting place). Your individual taxes may increase or
530	530	decrease, depending on the change in the taxable value of your
531	531	property in relation to the change in taxable value of all other
532	532	property and the tax rate that is adopted.
533	533	"(Names of all board members and, if a vote was taken, an
534	534	indication of how each voted on the proposed tax rate and an
535	535	indication of any absences.)";
536	536	(2) contain the following information:
537	537	(A) the district's total adopted tax rate for the
538	538	preceding year and the proposed tax rate, expressed as an amount per
539	539	$100;
540	540	(B) the difference, expressed as an amount per
541	541	$100 and as a percent increase or decrease, as applicable, in the
542	542	proposed tax rate compared to the adopted tax rate for the preceding
543	543	year;
544	544	(C) the average appraised value of a residence
545	545	homestead in the district in the preceding year and in the current
546	546	year; the district's total homestead exemption, other than an
547	547	exemption available only to disabled persons or persons 65 years of
548	548	age or older, applicable to that appraised value in each of those
549	549	years; and the average taxable value of a residence homestead in
550	550	the district in each of those years, disregarding any homestead
551	551	exemption available only to disabled persons or persons 65 years of
552	552	age or older;
553	553	(D) the amount of tax that would have been
554	554	imposed by the district in the preceding year on a residence
555	555	homestead appraised at the average appraised value of a residence
556	556	homestead in that year, disregarding any homestead exemption
557	557	available only to disabled persons or persons 65 years of age or
558	558	older;
559	559	(E) the amount of tax that would be imposed by the
560	560	district in the current year on a residence homestead appraised at
561	561	the average appraised value of a residence homestead in that year,
562	562	disregarding any homestead exemption available only to disabled
563	563	persons or persons 65 years of age or older, if the proposed tax
564	564	rate is adopted; [and]
565	565	(F) the difference between the amounts of tax
566	566	calculated under Paragraphs (D) and (E), expressed in dollars and
567	567	cents and described as the annual percentage increase or decrease,
568	568	as applicable, in the tax to be imposed by the district on the
569	569	average residence homestead in the district in the current year if
570	570	the proposed tax rate is adopted; and
571	571	(G) if the proposed combined debt service,
572	572	operation and maintenance, and contract tax rate requires or
573	573	authorizes an election in the district to approve the tax rate, a
574	574	description of the purpose of the proposed tax increase; and
575	575	(3) contain a statement in substantially the following
576	576	form, as applicable:
577	577	(A) if the district is not a small taxing unit and
578	578	there are not any new improvements in the district in the current
579	579	tax year:
580	580	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
581	581	"If taxes on the average residence homestead increase by more
582	582	than five [eight] percent, [the qualified voters of the district by
583	583	petition may require that] an election must be held to determine
584	584	whether to approve [reduce] the [operation and maintenance] tax
585	585	rate [to the rollback tax rate] under Section 49.236(d), Water
586	586	Code."; or
587	587	(B) if the district is a small taxing unit or
588	588	there are any new improvements in the district in the current tax
589	589	year:
590	590	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
591	591	"If taxes on the average residence homestead increase by more
592	592	than eight percent, the qualified voters of the district by
593	593	petition may require that an election be held to determine whether
594	594	to approve the tax rate under Section 49.236(e), Water Code."
595	595	(d) This subsection applies to a district only if the
596	596	district is not a small taxing unit and there are not any new
597	597	improvements in the district in the current tax year. If the board
598	598	[governing body] of the [a] district adopts a combined debt
599	599	service, operation and maintenance, and contract tax rate that
600	600	would impose more than 1.05 [1.08] times the amount of tax imposed
601	601	by the district in the preceding year on a residence homestead
602	602	appraised at the average appraised value of a residence homestead
603	603	in the district in that year, disregarding any homestead exemption
604	604	available only to disabled persons or persons 65 years of age or
605	605	older, [the qualified voters of the district by petition may
606	606	require that] an election must be held to determine whether [or not]
607	607	to approve [reduce] the tax rate adopted for the current year [to
608	608	the rollback tax rate] in accordance with the procedures provided
609	609	by Sections 26.08(b), (c), (d), (d-1), and (d-2) [26.07(b)-(g) and
610	610	26.081], Tax Code.
611	611	(e) This subsection and Subsections (f)-(i) apply to a
612	612	district only if the district is a small taxing unit or there are
613	613	any new improvements in the district in the current tax year. If
614	614	the board of the district adopts a combined debt service, operation
615	615	and maintenance, and contract tax rate that would impose more than
616	616	1.08 times the amount of tax imposed by the district in the
617	617	preceding year on a residence homestead appraised at the average
618	618	appraised value of a residence homestead in the district in that
619	619	year, disregarding any homestead exemption available only to
620	620	disabled persons or persons 65 years of age or older, the qualified
621	621	voters of the district by petition may require that an election be
622	622	held to determine whether to approve the tax rate adopted for the
623	623	current year in accordance with the procedures provided by
624	624	Subsections (f)-(i) of this section and Section 26.081, Tax Code.
625	625	(f) A petition under Subsection (e) is valid only if:
626	626	(1) it states that it is intended to require an
627	627	election in the district on the question of approving the tax rate
628	628	adopted for the current year;
629	629	(2) it is signed by a number of registered voters of
630	630	the district equal to at least:
631	631	(A) seven percent of the number of registered
632	632	voters of the district according to the most recent official list of
633	633	registered voters if the tax rate adopted for the current tax year
634	634	would impose taxes for operation and maintenance in an amount of at
635	635	least $5 million; or
636	636	(B) 10 percent of the number of registered voters
637	637	of the district according to the most recent official list of
638	638	registered voters if the tax rate adopted for the current tax year
639	639	would impose taxes for operation and maintenance in an amount of
640	640	less than $5 million; and
641	641	(3) it is submitted to the board on or before the 90th
642	642	day after the date on which the board adopted the tax rate for the
643	643	current year.
644	644	(g) Not later than the 20th day after the day a petition is
645	645	submitted, the board shall determine whether or not the petition is
646	646	valid and pass a resolution stating its finding. If the board fails
647	647	to act within the time allowed, the petition is treated as if it had
648	648	been found valid.
649	649	(h) If the board finds that the petition is valid (or fails
650	650	to act within the time allowed), it shall order that an election be
651	651	held in the district on a date not less than 30 or more than 90 days
652	652	after the last day on which it could have acted to approve or
653	653	disapprove the petition. A state law requiring local elections to
654	654	be held on a specified date does not apply to the election unless a
655	655	specified date falls within the time permitted by this subsection.
656	656	At the election, the ballots shall be prepared to permit voting for
657	657	or against the proposition: "Approving the ad valorem tax rate of
658	658	$____ per $100 valuation in (name of district) for the current year,
659	659	a rate that is $____ higher per $100 valuation than the district's
660	660	rollback tax rate, for the purpose of (description of purpose of
661	661	increase)." The ballot proposition must include the adopted tax
662	662	rate and the difference between that rate and the rollback tax rate
663	663	in the appropriate places.
664	664	(i) Sections 26.08(c), (d), (d-1), and (d-2), Tax Code,
665	665	apply to an election under Subsection (e) of this section in the
666	666	same manner as those subsections apply to an election under Section
667	667	26.08, Tax Code.
668	668	(j) For purposes of Subsection (d) [Sections 26.07(b)-(g)
669	669	and this subsection], the rollback tax rate of a district is the sum
670	670	of the following tax rates:
671	671	(1) the current year's debt service tax rate;
672	672	(2) the current year's [and] contract tax rate; and
673	673	(3) [rates plus] the operation and maintenance tax
674	674	rate that would impose 1.05 [1.08] times the amount of the operation
675	675	and maintenance tax imposed by the district in the preceding year on
676	676	a residence homestead appraised at the average appraised value of a
677	677	residence homestead in the district in that year, disregarding any
678	678	homestead exemption available only to disabled persons or persons
679	679	65 years of age or older.
680	680	(k) For purposes of Subsection (e), the rollback tax rate of
681	681	a district is the sum of the following tax rates:
682	682	(1) the current year's debt service tax rate;
683	683	(2) the current year's contract tax rate; and
684	684	(3) the operation and maintenance tax rate that would
685	685	impose 1.08 times the amount of the operation and maintenance tax
686	686	imposed by the district in the preceding year on a residence
687	687	homestead appraised at the average appraised value of a residence
688	688	homestead in the district in that year, disregarding any homestead
689	689	exemption available only to disabled persons or persons 65 years of
690	690	age or older.
691	691	(l) Notwithstanding any other provision of this section,
692	692	the board may substitute "eight percent" for "five percent" in
693	693	Subsection (a)(3)(A) and "1.08" for "1.05" in Subsections (d) and
694	694	(j) if any part of the district is located in an area declared a
695	695	disaster area during the current tax year by the governor or by the
696	696	president of the United States.
697	697	(m) In this section:
698	698	(1) "Improvement" has the meaning assigned by Section
699	699	1.04(3)(A), (B), or (C), Tax Code.
700	700	(2) "Small taxing unit" has the meaning assigned by
701	701	Section 26.012, Tax Code.
702	702	SECTION 20. The following provisions are repealed:
703	703	(1) Section 49.236, Water Code, as added by Chapter
704	704	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
705	705	2003; and
706	706	(2) Section 49.2361, Water Code.
707	707	SECTION 21. This Act takes effect January 1, 2018.