Texas 2017 - 85th 1st C.S.

Texas House Bill HB3 Compare Versions

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1	1	85S10083 SMH/TJB-F
2	2	By: Bonnen of Brazoria H.B. No. 3
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to ad valorem taxation; authorizing fees.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	ARTICLE 1. SHORT TITLE
10	10	SECTION 1.01. This Act may be cited as the Property Tax
11	11	Payer Empowerment Act of 2017.
12	12	ARTICLE 2. ADMINISTRATION OF AD VALOREM TAX SYSTEM
13	13	SECTION 2.01. Section 1.085(a), Tax Code, is amended to
14	14	read as follows:
15	15	(a) Notwithstanding any other provision in this title and
16	16	except as provided by this section, any notice, rendition,
17	17	application form, or completed application, or information
18	18	requested under Section 41.461(a)(2), that is required or permitted
19	19	by this title to be delivered between a chief appraiser, an
20	20	appraisal district, an appraisal review board, or any combination
21	21	of those persons and a property owner or [between a chief appraiser,
22	22	an appraisal district, an appraisal review board, or any
23	23	combination of those persons and] a person designated by a property
24	24	owner under Section 1.111(f) may be delivered in an electronic
25	25	format if the chief appraiser and the property owner or person
26	26	designated by the owner agree under this section.
27	27	SECTION 2.02. Chapter 5, Tax Code, is amended by adding
28	28	Section 5.01 to read as follows:
29	29	Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD.
30	30	(a) The comptroller shall appoint the property tax administration
31	31	advisory board to advise the comptroller with respect to the
32	32	division or divisions within the office of the comptroller with
33	33	primary responsibility for state administration of property
34	34	taxation and state oversight of appraisal districts and local tax
35	35	offices. The advisory board may make recommendations to the
36	36	comptroller regarding improving the effectiveness and efficiency
37	37	of the property tax system, best practices, and complaint
38	38	resolution procedures. The comptroller shall post the
39	39	recommendations of the advisory board on the comptroller's Internet
40	40	website.
41	41	(b) The advisory board is composed of at least six members
42	42	appointed by the comptroller. The members of the board should
43	43	include:
44	44	(1) representatives of property tax payers, appraisal
45	45	districts, and school districts; and
46	46	(2) a person who has knowledge or experience in
47	47	conducting ratio studies.
48	48	(c) The members of the advisory board serve at the pleasure
49	49	of the comptroller.
50	50	(d) Any advice to the comptroller relating to a matter
51	51	described by Subsection (a) that is provided by a member of the
52	52	advisory board must be provided at a meeting called by the
53	53	comptroller.
54	54	(e) Chapter 2110, Government Code, does not apply to the
55	55	advisory board.
56	56	SECTION 2.03. Sections 5.041(b), (c), and (e-1), Tax Code,
57	57	are amended to read as follows:
58	58	(b) A member of the appraisal review board established for
59	59	an appraisal district must complete the course established under
60	60	Subsection (a). The course must provide at least eight hours of
61	61	classroom training and education. A member of the appraisal review
62	62	board may not participate in a hearing conducted by the board unless
63	63	the person has completed the course established under Subsection
64	64	(a) and received a certificate of course completion.
65	65	(c) The comptroller may contract with service providers to
66	66	assist with the duties imposed under Subsection (a), but the course
67	67	required may not be provided by an appraisal district, the chief
68	68	appraiser or another employee of an appraisal district, a member of
69	69	the board of directors of an appraisal district, a member of an
70	70	appraisal review board, or a taxing unit. The comptroller may
71	71	assess a fee to recover a portion of the costs incurred for the
72	72	training course, but the fee may not exceed $50 per person trained.
73	73	If the training is provided to an individual other than a member of
74	74	an appraisal review board, the comptroller may assess a fee not to
75	75	exceed $50 per person trained.
76	76	(e-1) In addition to the course established under
77	77	Subsection (a), the comptroller shall approve curricula and provide
78	78	materials for use in a continuing education course for members of an
79	79	appraisal review board. The course must provide at least four hours
80	80	of classroom training and education. The curricula and materials
81	81	must include information regarding:
82	82	(1) the cost, income, and market data comparison
83	83	methods of appraising property;
84	84	(2) the appraisal of business personal property;
85	85	(3) the determination of capitalization rates for
86	86	property appraisal purposes;
87	87	(4) the duties of an appraisal review board;
88	88	(5) the requirements regarding the independence of an
89	89	appraisal review board from the board of directors and the chief
90	90	appraiser and other employees of the appraisal district;
91	91	(6) the prohibitions against ex parte communications
92	92	applicable to appraisal review board members;
93	93	(7) the Uniform Standards of Professional Appraisal
94	94	Practice;
95	95	(8) the duty of the appraisal district to substantiate
96	96	the district's determination of the value of property;
97	97	(9) the requirements regarding the equal and uniform
98	98	appraisal of property;
99	99	(10) the right of a property owner to protest the
100	100	appraisal of the property as provided by Chapter 41; and
101	101	(11) a detailed explanation of each of the actions
102	102	described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
103	103	41.42, and 41.43 so that members are fully aware of each of the
104	104	grounds on which a property appraisal can be appealed.
105	105	SECTION 2.04. Chapter 5, Tax Code, is amended by adding
106	106	Section 5.043 to read as follows:
107	107	Sec. 5.043. TRAINING OF ARBITRATORS. (a) This section
108	108	applies only to persons who have agreed to serve as arbitrators
109	109	under Chapter 41A.
110	110	(b) The comptroller shall:
111	111	(1) approve curricula and provide an arbitration
112	112	manual and other materials for use in training and educating
113	113	arbitrators;
114	114	(2) make all materials for use in training and
115	115	educating arbitrators freely available online; and
116	116	(3) establish and supervise a training program on
117	117	property tax law for the training and education of arbitrators.
118	118	(c) The training program must:
119	119	(1) emphasize the requirements regarding the equal and
120	120	uniform appraisal of property; and
121	121	(2) be at least four hours in length.
122	122	(d) The training program may be provided online. The
123	123	comptroller by rule may prescribe the manner by which the
124	124	comptroller may verify that a person taking the training program
125	125	online has taken and completed the program.
126	126	(e) The comptroller may contract with service providers to
127	127	assist with the duties imposed under Subsection (b), but the
128	128	training program may not be provided by an appraisal district, the
129	129	chief appraiser or another employee of an appraisal district, a
130	130	member of the board of directors of an appraisal district, a member
131	131	of an appraisal review board, or a taxing unit. The comptroller may
132	132	assess a fee to recover a portion of the costs incurred for the
133	133	training program, but the fee may not exceed $50 for each person
134	134	trained.
135	135	(f) The comptroller shall prepare an arbitration manual for
136	136	use in the training program. The manual shall be updated regularly
137	137	and may be revised on request, in writing, to the comptroller. The
138	138	revised language must be approved by the unanimous agreement of a
139	139	committee selected by the comptroller and representing, equally,
140	140	taxpayers and chief appraisers. The person requesting the revision
141	141	must pay the costs of mediation if the comptroller determines that
142	142	mediation is required.
143	143	SECTION 2.05. Section 5.07, Tax Code, is amended by adding
144	144	Subsections (f), (g), (h), and (i) to read as follows:
145	145	(f) In conjunction with prescribing a uniform record system
146	146	to be used by all appraisal districts as required by Subsection (c),
147	147	the comptroller shall prescribe tax rate calculation forms to be
148	148	used by the designated officer or employee of each:
149	149	(1) taxing unit other than a school district to
150	150	calculate and submit the no-new-revenue tax rate and the rollback
151	151	tax rate for the unit as required by Chapter 26; and
152	152	(2) school district to calculate and submit the
153	153	no-new-revenue tax rate, the rollback tax rate, and the rate to
154	154	maintain the same amount of state and local revenue per weighted
155	155	student that the district received in the school year beginning in
156	156	the preceding tax year as required by Chapter 26.
157	157	(g) The forms described by Subsection (f) must be in an
158	158	electronic format and:
159	159	(1) have blanks that can be filled in electronically;
160	160	(2) be capable of being certified by the designated
161	161	officer or employee after completion as accurately calculating the
162	162	applicable tax rates and using values that are the same as the
163	163	values shown in the taxing unit's certified appraisal roll; and
164	164	(3) be capable of being submitted electronically to
165	165	the chief appraiser of each appraisal district in which the taxing
166	166	unit is located.
167	167	(h) For purposes of Subsections (f) and (g), the comptroller
168	168	shall use the forms published on the comptroller's Internet website
169	169	as of January 1, 2017, as modified as necessary to comply with the
170	170	requirements of those subsections. The forms may be updated at the
171	171	discretion of the comptroller to reflect any statutory change in
172	172	the values used to calculate a tax rate or to reflect formatting or
173	173	other nonsubstantive changes.
174	174	(i) The comptroller may revise the forms to reflect
175	175	statutory changes other than those described by Subsection (h) or
176	176	on receipt of a request in writing. A revision under this
177	177	subsection must be approved by the agreement of a majority of the
178	178	members of a committee selected by the comptroller who are present
179	179	at a committee meeting at which a quorum is present. The members of
180	180	the committee must represent, equally, taxpayers and either taxing
181	181	units or persons designated by taxing units. In the case of a
182	182	revision for which the comptroller receives a request in writing,
183	183	the person requesting the revision shall pay the costs of mediation
184	184	if the comptroller determines that mediation is required.
185	185	SECTION 2.06. Section 5.091, Tax Code, is amended to read as
186	186	follows:
187	187	Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
188	188	comptroller shall prepare a list that includes the total tax rate
189	189	imposed by each taxing unit in this state, as [other than a school
190	190	district, if the tax rate is] reported to the comptroller by each
191	191	appraisal district, for the year [preceding the year] in which the
192	192	list is prepared. The comptroller shall:
193	193	(1) prescribe the manner in which and deadline by
194	194	which appraisal districts are required to submit the tax rates to
195	195	the comptroller; and
196	196	(2) list the tax rates alphabetically according to:
197	197	(A) the county or counties in which each taxing
198	198	unit is located; and
199	199	(B) the name of each taxing unit [in descending
200	200	order].
201	201	(b) Not later than January 1 [December 31] of the following
202	202	[each] year, the comptroller shall publish on the comptroller's
203	203	Internet website the list required by Subsection (a).
204	204	SECTION 2.07. Section 5.102(a), Tax Code, is amended to
205	205	read as follows:
206	206	(a) At least once every two years, the comptroller shall
207	207	review the governance of each appraisal district, taxpayer
208	208	assistance provided, and the operating and appraisal standards,
209	209	procedures, and methodology used by each appraisal district, to
210	210	determine compliance with generally accepted standards,
211	211	procedures, and methodology. After consultation with the property
212	212	tax administration advisory board [committee created under Section
213	213	403.302, Government Code], the comptroller by rule may establish
214	214	procedures and standards for conducting and scoring the review.
215	215	SECTION 2.08. Chapter 5, Tax Code, is amended by adding
216	216	Section 5.104 to read as follows:
217	217	Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The
218	218	comptroller shall prepare:
219	219	(1) an appraisal review board survey form that allows
220	220	an individual described by Subsection (b) to submit comments and
221	221	suggestions to the comptroller regarding an appraisal review board;
222	222	and
223	223	(2) instructions for completing and submitting the
224	224	form.
225	225	(b) The following individuals may complete and submit a
226	226	survey form under this section:
227	227	(1) a property owner who files a motion under Section
228	228	25.25 to correct the appraisal roll or a protest under Chapter 41;
229	229	(2) the designated agent of the property owner; or
230	230	(3) a designated representative of the appraisal
231	231	district in which the motion or protest is filed who attends the
232	232	hearing on the motion or protest.
233	233	(c) The survey form must allow an individual to submit
234	234	comments and suggestions regarding:
235	235	(1) the matters listed in Section 5.103(b); and
236	236	(2) any other matter related to the fairness and
237	237	efficiency of the appraisal review board.
238	238	(d) An appraisal district must provide the survey form and
239	239	the instructions for completing and submitting the form to each
240	240	property owner or designated agent of the owner:
241	241	(1) at or before each hearing conducted under Section
242	242	25.25 or Chapter 41 by the appraisal review board established for
243	243	the appraisal district or by a panel of the board; and
244	244	(2) with each order under Section 25.25 or 41.47
245	245	determining a motion or protest, as applicable, delivered by the
246	246	board or by a panel of the board.
247	247	(e) An individual who elects to submit the survey form must
248	248	submit the form to the comptroller as provided by this section. An
249	249	appraisal district may not accept a survey form submitted under
250	250	this section. An individual may submit only one survey form for
251	251	each motion or protest.
252	252	(f) The comptroller shall allow an individual to submit a
253	253	survey form to the comptroller in the following manner:
254	254	(1) in person;
255	255	(2) by mail;
256	256	(3) by electronic mail; or
257	257	(4) through a web page on the comptroller's Internet
258	258	website that allows the individual to complete and submit the form.
259	259	(g) An appraisal district may not require a property owner
260	260	or the designated agent of the owner to complete a survey form at
261	261	the appraisal office in order to be permitted to submit the form to
262	262	the comptroller.
263	263	(h) A property owner or the designated agent of the owner
264	264	who elects to submit a survey form provided to the owner or agent
265	265	under Subsection (d)(1) or (2) must submit the form not later than
266	266	the earlier of the 45th day after the date:
267	267	(1) the form is sent to the owner or agent under
268	268	Subsection (d)(2); or
269	269	(2) the matter that is the subject of the protest is
270	270	finally resolved if the protest is settled or otherwise resolved in
271	271	a manner that does not require the issuance of an order described by
272	272	Subsection (d)(2).
273	273	(i) A designated representative of an appraisal district
274	274	who elects to submit a survey form following a hearing conducted
275	275	under Section 25.25 or Chapter 41 must submit the form not later
276	276	than the 45th day after the date the form is sent to the property
277	277	owner or designated agent of the owner under Subsection (d)(2)
278	278	following that hearing.
279	279	(j) The comptroller shall issue an annual report that
280	280	summarizes the information included in the survey forms submitted
281	281	during the preceding year. The report may not disclose the identity
282	282	of an individual who submitted a survey form.
283	283	(k) The comptroller may adopt rules necessary to implement
284	284	this section.
285	285	SECTION 2.09. Section 6.41, Tax Code, is amended by
286	286	amending Subsections (b) and (d-9) and adding Subsections (b-1),
287	287	(b-2), and (d-10) to read as follows:
288	288	(b) Except as provided by Subsection (b-1) or (b-2), an
289	289	appraisal review [The] board consists of three members.
290	290	(b-1) An appraisal [However, the] district board of
291	291	directors by resolution of a majority of the board's [its] members
292	292	may increase the size of the district's appraisal review board to
293	293	the number of members the board of directors considers appropriate.
294	294	(b-2) An appraisal district board of directors for a
295	295	district established in a county with a population of one million or
296	296	more by resolution of a majority of the board's members shall
297	297	increase the size of the district's appraisal review board to the
298	298	number of members the board of directors considers appropriate to
299	299	manage the duties of the appraisal review board, including the
300	300	duties of each special panel established under Section 6.425.
301	301	(d-9) In selecting individuals who are to serve as members
302	302	of the appraisal review board, the local administrative district
303	303	judge shall select an adequate number of qualified individuals to
304	304	permit the chairman of the appraisal review board to fill the
305	305	positions on each special panel established under Section 6.425.
306	306	(d-10) Upon selection of the individuals who are to serve as
307	307	members of the appraisal review board, the local administrative
308	308	district judge shall enter an appropriate order designating such
309	309	members and setting each member's respective term of office, as
310	310	provided elsewhere in this section.
311	311	SECTION 2.10. Sections 6.412(a) and (d), Tax Code, are
312	312	amended to read as follows:
313	313	(a) An individual is ineligible to serve on an appraisal
314	314	review board if the individual:
315	315	(1) is related within the second degree by
316	316	consanguinity or affinity, as determined under Chapter 573,
317	317	Government Code, to an individual who is engaged in the business of
318	318	appraising property for compensation for use in proceedings under
319	319	this title or of representing property owners for compensation in
320	320	proceedings under this title in the appraisal district for which
321	321	the appraisal review board is established;
322	322	(2) owns property on which delinquent taxes have been
323	323	owed to a taxing unit for more than 60 days after the date the
324	324	individual knew or should have known of the delinquency unless:
325	325	(A) the delinquent taxes and any penalties and
326	326	interest are being paid under an installment payment agreement
327	327	under Section 33.02; or
328	328	(B) a suit to collect the delinquent taxes is
329	329	deferred or abated under Section 33.06 or 33.065; or
330	330	(3) is related within the third degree by
331	331	consanguinity or within the second degree by affinity, as
332	332	determined under Chapter 573, Government Code, to a member of:
333	333	(A) the appraisal district's board of directors;
334	334	or
335	335	(B) the appraisal review board.
336	336	(d) A person is ineligible to serve on the appraisal review
337	337	board of an appraisal district established for a county described
338	338	by Section 6.41(d-1) [having a population of more than 100,000] if
339	339	the person:
340	340	(1) is a former member of the board of directors,
341	341	former officer, or former employee of the appraisal district;
342	342	(2) served as a member of the governing body or officer
343	343	of a taxing unit for which the appraisal district appraises
344	344	property, until the fourth anniversary of the date the person
345	345	ceased to be a member or officer; [or]
346	346	(3) appeared before the appraisal review board for
347	347	compensation during the two-year period preceding the date the
348	348	person is appointed; or
349	349	(4) served for all or part of three previous terms as a
350	350	board member or auxiliary board member on the appraisal review
351	351	board.
352	352	SECTION 2.11. Section 6.414(d), Tax Code, is amended to
353	353	read as follows:
354	354	(d) An auxiliary board member may hear taxpayer protests
355	355	before the appraisal review board. An auxiliary board member may
356	356	not hear taxpayer protests before a special panel established under
357	357	Section 6.425 unless the member is eligible to be appointed to the
358	358	special panel. If one or more auxiliary board members sit on a
359	359	panel established under Section 6.425 or 41.45 to conduct a protest
360	360	hearing, the number of regular appraisal review board members
361	361	required by that section to constitute the panel is reduced by the
362	362	number of auxiliary board members sitting. An auxiliary board
363	363	member sitting on a panel is considered a regular board member for
364	364	all purposes related to the conduct of the hearing.
365	365	SECTION 2.12. Section 6.42, Tax Code, is amended by
366	366	amending Subsection (a) and adding Subsection (d) to read as
367	367	follows:
368	368	(a) A majority of the appraisal review board constitutes a
369	369	quorum. The local administrative district judge under Subchapter
370	370	D, Chapter 74, Government Code, in the county in which [board of
371	371	directors of] the appraisal district is established [by resolution]
372	372	shall select a chairman and a secretary from among the members of
373	373	the appraisal review board. The judge [board of directors of the
374	374	appraisal district] is encouraged to select as chairman [of the
375	375	appraisal review board] a member of the appraisal review board, if
376	376	any, who has a background in law and property appraisal.
377	377	(d) The concurrence of a majority of the members of the
378	378	appraisal review board or a panel of the board present at a meeting
379	379	of the board or panel is sufficient for a recommendation,
380	380	determination, decision, or other action by the board or panel, and
381	381	the concurrence of more than a majority of the members of the board
382	382	or panel may not be required.
383	383	SECTION 2.13. Subchapter C, Chapter 6, Tax Code, is amended
384	384	by adding Section 6.425 to read as follows:
385	385	Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
386	386	CERTAIN DISTRICTS. (a) This section applies only to the appraisal
387	387	review board for an appraisal district described by Section
388	388	6.41(b-2).
389	389	(b) The appraisal review board shall establish special
390	390	panels to conduct protest hearings under Chapter 41 relating to
391	391	property that:
392	392	(1) has an appraised value of $50 million or more as
393	393	determined by the appraisal district; and
394	394	(2) is included in one of the following
395	395	classifications:
396	396	(A) commercial real and personal property;
397	397	(B) real and personal property of utilities;
398	398	(C) industrial and manufacturing real and
399	399	personal property; and
400	400	(D) multifamily residential real property.
401	401	(c) Each special panel described by this section consists of
402	402	three members of the appraisal review board appointed by the
403	403	chairman of the board.
404	404	(d) To be eligible to be appointed to a special panel
405	405	described by this section, a member of the appraisal review board
406	406	must:
407	407	(1) hold a juris doctor or equivalent degree;
408	408	(2) hold a master of business administration degree;
409	409	(3) be licensed as a certified public accountant under
410	410	Chapter 901, Occupations Code;
411	411	(4) be accredited by the American Society of
412	412	Appraisers as an accredited senior appraiser;
413	413	(5) possess an MAI professional designation from the
414	414	Appraisal Institute;
415	415	(6) possess a Certified Assessment Evaluator (CAE)
416	416	professional designation from the International Association of
417	417	Assessing Officers;
418	418	(7) have at least 20 years of experience in property
419	419	tax appraisal or consulting; or
420	420	(8) be licensed as a real estate broker or sales agent
421	421	under Chapter 1101, Occupations Code.
422	422	(e) Notwithstanding Subsection (d), the chairman of the
423	423	appraisal review board may appoint to a special panel described by
424	424	this section a member of the appraisal review board who does not
425	425	meet the qualifications prescribed by that subsection if:
426	426	(1) the number of persons appointed to the board by the
427	427	local administrative district judge who meet those qualifications
428	428	is not sufficient to fill the positions on each special panel; and
429	429	(2) the board member being appointed to the panel
430	430	holds a bachelor's degree in any field.
431	431	(f) In addition to conducting protest hearings relating to
432	432	property described by Subsection (b) of this section, a special
433	433	panel may conduct protest hearings under Chapter 41 relating to
434	434	property not described by Subsection (b) of this section as
435	435	assigned by the chairman of the appraisal review board.
436	436	SECTION 2.14. Effective January 1, 2019, Section 25.19, Tax
437	437	Code, is amended by adding Subsections (b-3) and (b-4) to read as
438	438	follows:
439	439	(b-3) This subsection applies only to an appraisal district
440	440	described by Section 6.41(b-2). In addition to the information
441	441	required by Subsection (b), the chief appraiser shall state in a
442	442	notice of appraised value of property described by Section 6.425(b)
443	443	that the property owner has the right to have a protest relating to
444	444	the property heard by a special panel of the appraisal review board.
445	445	(b-4) Subsection (b)(5) applies only to a notice of
446	446	appraised value required to be delivered by the chief appraiser of
447	447	an appraisal district established in a county with a population of
448	448	less than 120,000. This subsection expires January 1, 2020.
449	449	SECTION 2.15. (a) This section takes effect only if Article
450	450	3 of this Act does not take effect.
451	451	(b) Effective January 1, 2020, Sections 25.19(b) and (i),
452	452	Tax Code, are amended to read as follows:
453	453	(b) The chief appraiser shall separate real from personal
454	454	property and include in the notice for each:
455	455	(1) a list of the taxing units in which the property is
456	456	taxable;
457	457	(2) the appraised value of the property in the
458	458	preceding year;
459	459	(3) the taxable value of the property in the preceding
460	460	year for each taxing unit taxing the property;
461	461	(4) the appraised value of the property for the
462	462	current year, the kind and amount of each exemption and partial
463	463	exemption, if any, approved for the property for the current year
464	464	and for the preceding year, and, if an exemption or partial
465	465	exemption that was approved for the preceding year was canceled or
466	466	reduced for the current year, the amount of the exemption or partial
467	467	exemption canceled or reduced;
468	468	(5) [if the appraised value is greater than it was in
469	469	the preceding year, the amount of tax that would be imposed on the
470	470	property on the basis of the tax rate for the preceding year;
471	471	[(6)] in italic typeface, the following
472	472	statement: "The Texas Legislature does not set the amount of your
473	473	local taxes. Your property tax burden is decided by your locally
474	474	elected officials, and all inquiries concerning your taxes should
475	475	be directed to those officials";
476	476	(6) [(7)] a detailed explanation of the time and
477	477	procedure for protesting the value;
478	478	(7) [(8)] the date and place the appraisal review
479	479	board will begin hearing protests; and
480	480	(8) [(9)] a brief explanation that the governing body
481	481	of each taxing unit decides whether or not taxes on the property
482	482	will increase and the appraisal district only determines the value
483	483	of the property.
484	484	(i) Delivery with a notice required by Subsection (a) or (g)
485	485	of a copy of the pamphlet published by the comptroller under Section
486	486	5.06 or a copy of the notice published by the chief appraiser under
487	487	Section 41.70 is sufficient to comply with the requirement that the
488	488	notice include the information specified by Subsection (b)(6)
489	489	[(b)(7)] or (g)(3), as applicable.
490	490	SECTION 2.16. Section 25.25(c), Tax Code, is amended to
491	491	read as follows:
492	492	(c) The appraisal review board, on motion of the chief
493	493	appraiser or of a property owner, may direct by written order
494	494	changes in the appraisal roll for any of the five preceding years to
495	495	correct:
496	496	(1) clerical errors that affect a property owner's
497	497	liability for a tax imposed in that tax year;
498	498	(2) multiple appraisals of a property in that tax
499	499	year;
500	500	(3) the inclusion of property that does not exist in
501	501	the form or at the location described in the appraisal roll; [or]
502	502	(4) an error in which property is shown as owned by a
503	503	person who did not own the property on January 1 of that tax year; or
504	504	(5) an error in the square footage of a property
505	505	described in the appraisal roll and any error in the appraised value
506	506	of the property that resulted from that error.
507	507	SECTION 2.17. Section 26.012(9), Tax Code, is redesignated
508	508	as Section 26.012(18), Tax Code, and amended to read as follows:
509	509	(18) "No-new-revenue [(9) "Effective] maintenance
510	510	and operations rate" means a rate expressed in dollars per $100 of
511	511	taxable value and calculated according to the following formula:
512	512	NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE AND OPERATIONS
513	513	RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
514	514	YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
515	515	NEW PROPERTY VALUE)
516	516	SECTION 2.18. The heading to Section 26.04, Tax Code, is
517	517	amended to read as follows:
518	518	Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
519	519	NO-NEW-REVENUE [EFFECTIVE] AND ROLLBACK TAX RATES.
520	520	SECTION 2.19. Section 26.04, Tax Code, is amended by
521	521	amending Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and
522	522	(j) and adding Subsections (d-1), (d-2), (e-2), (e-3), and (e-4) to
523	523	read as follows:
524	524	(b) The assessor shall submit the appraisal roll for the
525	525	unit showing the total appraised, assessed, and taxable values of
526	526	all property and the total taxable value of new property to the
527	527	governing body of the unit by August 1 or as soon thereafter as
528	528	practicable. By August 1 or as soon thereafter as practicable, the
529	529	taxing unit's collector shall certify [an estimate of] the
530	530	anticipated collection rate, as defined by Subsection (h), for the
531	531	current year to the governing body. If the collector certified an
532	532	anticipated collection rate in the preceding year and the actual
533	533	collection rate in that year exceeded the anticipated rate, the
534	534	collector shall also certify the amount of debt taxes collected in
535	535	excess of the anticipated amount in the preceding year.
536	536	(c) After the assessor for the unit submits the appraisal
537	537	roll for the unit to the governing body of the unit as required by
538	538	Subsection (b), an [An] officer or employee designated by the
539	539	governing body shall calculate the no-new-revenue [effective] tax
540	540	rate and the rollback tax rate for the unit, where:
541	541	(1) "No-new-revenue [Effective] tax rate" means a rate
542	542	expressed in dollars per $100 of taxable value calculated according
543	543	to the following formula:
544	544	NO-NEW-REVENUE [EFFECTIVE] TAX RATE = (LAST YEAR'S
545	545	LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE -
546	546	NEW PROPERTY VALUE)
547	547	; and
548	548	(2) "Rollback tax rate" means a rate expressed in
549	549	dollars per $100 of taxable value calculated according to the
550	550	following formula:
551	551	ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE
552	552	AND OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
553	553	(d) The no-new-revenue [effective] tax rate for a county is
554	554	the sum of the no-new-revenue [effective] tax rates calculated for
555	555	each type of tax the county levies and the rollback tax rate for a
556	556	county is the sum of the rollback tax rates calculated for each type
557	557	of tax the county levies.
558	558	(d-1) The designated officer or employee shall use the tax
559	559	rate calculation forms prescribed by the comptroller under Section
560	560	5.07 in calculating the no-new-revenue tax rate and the rollback
561	561	tax rate.
562	562	(d-2) The designated officer or employee may not submit the
563	563	no-new-revenue tax rate and the rollback tax rate to the governing
564	564	body of the taxing unit and the unit may not adopt a tax rate until
565	565	the designated officer or employee certifies on the tax rate
566	566	calculation forms that the designated officer or employee has
567	567	accurately calculated the tax rates and has used values that are the
568	568	same as the values shown in the unit's certified appraisal roll in
569	569	performing the calculations.
570	570	(e) By August 7 or as soon thereafter as practicable, the
571	571	designated officer or employee shall submit the rates to the
572	572	governing body. The designated officer or employee [He] shall
573	573	deliver by mail to each property owner in the unit or publish in a
574	574	newspaper and may post prominently on the home page of the unit's
575	575	Internet website, if applicable, in the form prescribed by the
576	576	comptroller:
577	577	(1) the no-new-revenue [effective] tax rate, the
578	578	rollback tax rate, and an explanation of how they were calculated;
579	579	(2) the estimated amount of interest and sinking fund
580	580	balances and the estimated amount of maintenance and operation or
581	581	general fund balances remaining at the end of the current fiscal
582	582	year that are not encumbered with or by corresponding existing debt
583	583	obligation;
584	584	(3) a schedule of the unit's debt obligations showing:
585	585	(A) the amount of principal and interest that
586	586	will be paid to service the unit's debts in the next year from
587	587	property tax revenue, including payments of lawfully incurred
588	588	contractual obligations providing security for the payment of the
589	589	principal of and interest on bonds and other evidences of
590	590	indebtedness issued on behalf of the unit by another political
591	591	subdivision and, if the unit is created under Section 52, Article
592	592	III, or Section 59, Article XVI, Texas Constitution, payments on
593	593	debts that the unit anticipates to incur in the next calendar year;
594	594	(B) the amount by which taxes imposed for debt
595	595	are to be increased because of the unit's anticipated collection
596	596	rate; and
597	597	(C) the total of the amounts listed in Paragraphs
598	598	(A)-(B), less any amount collected in excess of the previous year's
599	599	anticipated collections certified as provided in Subsection (b);
600	600	(4) the amount of additional sales and use tax revenue
601	601	anticipated in calculations under Section 26.041;
602	602	(5) a statement that the adoption of a tax rate equal
603	603	to the no-new-revenue [effective] tax rate would result in an
604	604	increase or decrease, as applicable, in the amount of taxes imposed
605	605	by the unit as compared to last year's levy, and the amount of the
606	606	increase or decrease;
607	607	(6) in the year that a taxing unit calculates an
608	608	adjustment under Subsection (i) or (j), a schedule that includes
609	609	the following elements:
610	610	(A) the name of the unit discontinuing the
611	611	department, function, or activity;
612	612	(B) the amount of property tax revenue spent by
613	613	the unit listed under Paragraph (A) to operate the discontinued
614	614	department, function, or activity in the 12 months preceding the
615	615	month in which the calculations required by this chapter are made;
616	616	and
617	617	(C) the name of the unit that operates a distinct
618	618	department, function, or activity in all or a majority of the
619	619	territory of a taxing unit that has discontinued operating the
620	620	distinct department, function, or activity; and
621	621	(7) in the year following the year in which a taxing
622	622	unit raised its rollback tax rate as required by Subsection (j), a
623	623	schedule that includes the following elements:
624	624	(A) the amount of property tax revenue spent by
625	625	the unit to operate the department, function, or activity for which
626	626	the taxing unit raised the rollback tax rate as required by
627	627	Subsection (j) for the 12 months preceding the month in which the
628	628	calculations required by this chapter are made; and
629	629	(B) the amount published by the unit in the
630	630	preceding tax year under Subdivision (6)(B).
631	631	(e-1) The tax rate certification requirements imposed by
632	632	Subsection (d-2) and the notice requirements imposed by Subsections
633	633	(e)(1)-(6) do not apply to a school district.
634	634	(e-2) By August 7 or as soon thereafter as practicable, the
635	635	chief appraiser of each appraisal district shall deliver by regular
636	636	mail or e-mail to each owner of property located in the appraisal
637	637	district a notice that the estimated amount of taxes to be imposed
638	638	on the owner's property by each taxing unit in which the property is
639	639	located may be found in the property tax database maintained by the
640	640	appraisal district under Section 26.17. The notice must include:
641	641	(1) the following statement:
642	642	"PROPOSED (tax year) PROPERTY TAX BILL INFORMATION
643	643	"Information concerning the property taxes that may be
644	644	imposed on your property by local taxing units, the dates and
645	645	locations of any public hearings on the tax rates of the taxing
646	646	units, and the dates and locations of meetings of the governing
647	647	bodies of the taxing units to vote on the tax rates, together with
648	648	other important property tax information, may be found at the
649	649	website listed below:
650	650	"(address of the Internet website at which the information
651	651	may be found).";
652	652	(2) a statement that the property owner may request
653	653	from the county assessor-collector contact information for the
654	654	assessor for each taxing unit in which the property is located, who
655	655	must provide the information described by this subsection to the
656	656	owner on request; and
657	657	(3) the address and telephone number of the county
658	658	assessor-collector.
659	659	(e-3) The heading of the statement described by Subsection
660	660	(e-2)(1) must be in bold, capital letters in typeset larger than
661	661	that used in the other provisions of the notice.
662	662	(e-4) The comptroller may adopt rules regarding the format
663	663	and delivery of the notice required by Subsection (e-2).
664	664	(f) If as a result of consolidation of taxing units a taxing
665	665	unit includes territory that was in two or more taxing units in the
666	666	preceding year, the amount of taxes imposed in each in the preceding
667	667	year is combined for purposes of calculating the no-new-revenue
668	668	[effective] and rollback tax rates under this section.
669	669	(g) A person who owns taxable property is entitled to an
670	670	injunction prohibiting the taxing unit in which the property is
671	671	taxable from adopting a tax rate if the assessor or designated
672	672	officer or employee of the unit, the chief appraiser of the
673	673	applicable appraisal district, or the taxing unit, as applicable,
674	674	has not complied with the computation, [or] publication, or posting
675	675	requirements of this section or Section 26.17 or 26.18 [and the
676	676	failure to comply was not in good faith].
677	677	(i) This subsection applies to a taxing unit that has agreed
678	678	by written contract to transfer a distinct department, function, or
679	679	activity to another taxing unit and discontinues operating that
680	680	distinct department, function, or activity if the operation of that
681	681	department, function, or activity in all or a majority of the
682	682	territory of the taxing unit is continued by another existing
683	683	taxing unit or by a new taxing unit. The rollback tax rate of a
684	684	taxing unit to which this subsection applies in the first tax year
685	685	in which a budget is adopted that does not allocate revenue to the
686	686	discontinued department, function, or activity is calculated as
687	687	otherwise provided by this section, except that last year's levy
688	688	used to calculate the no-new-revenue [effective] maintenance and
689	689	operations rate of the unit is reduced by the amount of maintenance
690	690	and operations tax revenue spent by the taxing unit to operate the
691	691	department, function, or activity for the 12 months preceding the
692	692	month in which the calculations required by this chapter are made
693	693	and in which the unit operated the discontinued department,
694	694	function, or activity. If the unit did not operate that department,
695	695	function, or activity for the full 12 months preceding the month in
696	696	which the calculations required by this chapter are made, the unit
697	697	shall reduce last year's levy used for calculating the
698	698	no-new-revenue [effective] maintenance and operations rate of the
699	699	unit by the amount of the revenue spent in the last full fiscal year
700	700	in which the unit operated the discontinued department, function,
701	701	or activity.
702	702	(j) This subsection applies to a taxing unit that had agreed
703	703	by written contract to accept the transfer of a distinct
704	704	department, function, or activity from another taxing unit and
705	705	operates a distinct department, function, or activity if the
706	706	operation of a substantially similar department, function, or
707	707	activity in all or a majority of the territory of the taxing unit
708	708	has been discontinued by another taxing unit, including a dissolved
709	709	taxing unit. The rollback tax rate of a taxing unit to which this
710	710	subsection applies in the first tax year after the other taxing unit
711	711	discontinued the substantially similar department, function, or
712	712	activity in which a budget is adopted that allocates revenue to the
713	713	department, function, or activity is calculated as otherwise
714	714	provided by this section, except that last year's levy used to
715	715	calculate the no-new-revenue [effective] maintenance and
716	716	operations rate of the unit is increased by the amount of
717	717	maintenance and operations tax revenue spent by the taxing unit
718	718	that discontinued operating the substantially similar department,
719	719	function, or activity to operate that department, function, or
720	720	activity for the 12 months preceding the month in which the
721	721	calculations required by this chapter are made and in which the unit
722	722	operated the discontinued department, function, or activity. If
723	723	the unit did not operate the discontinued department, function, or
724	724	activity for the full 12 months preceding the month in which the
725	725	calculations required by this chapter are made, the unit may
726	726	increase last year's levy used to calculate the no-new-revenue
727	727	[effective] maintenance and operations rate by an amount not to
728	728	exceed the amount of property tax revenue spent by the
729	729	discontinuing unit to operate the discontinued department,
730	730	function, or activity in the last full fiscal year in which the
731	731	discontinuing unit operated the department, function, or activity.
732	732	SECTION 2.20. Sections 26.041(a), (b), (c), (e), (g), and
733	733	(h), Tax Code, are amended to read as follows:
734	734	(a) In the first year in which an additional sales and use
735	735	tax is required to be collected, the no-new-revenue [effective] tax
736	736	rate and rollback tax rate for the unit are calculated according to
737	737	the following formulas:
738	738	NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
739	739	LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
740	740	PROPERTY VALUE)] - SALES TAX GAIN RATE
741	741	and
742	742	ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE]
743	743	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
744	744	RATE - SALES TAX GAIN RATE
745	745	where "sales tax gain rate" means a number expressed in dollars per
746	746	$100 of taxable value, calculated by dividing the revenue that will
747	747	be generated by the additional sales and use tax in the following
748	748	year as calculated under Subsection (d) [of this section] by the
749	749	current total value.
750	750	(b) Except as provided by Subsections (a) and (c) [of this
751	751	section], in a year in which a taxing unit imposes an additional
752	752	sales and use tax, the rollback tax rate for the unit is calculated
753	753	according to the following formula, regardless of whether the unit
754	754	levied a property tax in the preceding year:
755	755	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
756	756	OPERATIONS EXPENSE x 1.08) / ([TOTAL] CURRENT TOTAL
757	757	VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE -
758	758	SALES TAX REVENUE RATE)
759	759	where "last year's maintenance and operations expense" means the
760	760	amount spent for maintenance and operations from property tax and
761	761	additional sales and use tax revenues in the preceding year, and
762	762	"sales tax revenue rate" means a number expressed in dollars per
763	763	$100 of taxable value, calculated by dividing the revenue that will
764	764	be generated by the additional sales and use tax in the current year
765	765	as calculated under Subsection (d) [of this section] by the current
766	766	total value.
767	767	(c) In a year in which a taxing unit that has been imposing
768	768	an additional sales and use tax ceases to impose an additional sales
769	769	and use tax, the no-new-revenue [effective] tax rate and rollback
770	770	tax rate for the unit are calculated according to the following
771	771	formulas:
772	772	NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
773	773	LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
774	774	PROPERTY VALUE)] + SALES TAX LOSS RATE
775	775	and
776	776	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
777	777	OPERATIONS EXPENSE x 1.08) / ([TOTAL] CURRENT TOTAL
778	778	VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
779	779	where "sales tax loss rate" means a number expressed in dollars per
780	780	$100 of taxable value, calculated by dividing the amount of sales
781	781	and use tax revenue generated in the last four quarters for which
782	782	the information is available by the current total value and "last
783	783	year's maintenance and operations expense" means the amount spent
784	784	for maintenance and operations from property tax and additional
785	785	sales and use tax revenues in the preceding year.
786	786	(e) If a city that imposes an additional sales and use tax
787	787	receives payments under the terms of a contract executed before
788	788	January 1, 1986, in which the city agrees not to annex certain
789	789	property or a certain area and the owners or lessees of the property
790	790	or of property in the area agree to pay at least annually to the city
791	791	an amount determined by reference to all or a percentage of the
792	792	property tax rate of the city and all or a part of the value of the
793	793	property subject to the agreement or included in the area subject to
794	794	the agreement, the governing body, by order adopted by a majority
795	795	vote of the governing body, may direct the designated officer or
796	796	employee to add to the no-new-revenue [effective] and rollback tax
797	797	rates the amount that, when applied to the total taxable value
798	798	submitted to the governing body, would produce an amount of taxes
799	799	equal to the difference between the total amount of payments for the
800	800	tax year under contracts described by this subsection under the
801	801	rollback tax rate calculated under this section and the total
802	802	amount of payments for the tax year that would have been obligated
803	803	to the city if the city had not adopted an additional sales and use
804	804	tax.
805	805	(g) If the rate of the additional sales and use tax is
806	806	increased, the designated officer or employee shall make two
807	807	projections, in the manner provided by Subsection (d) [of this
808	808	section], of the revenue generated by the additional sales and use
809	809	tax in the following year. The first projection must take into
810	810	account the increase and the second projection must not take into
811	811	account the increase. The designated officer or employee shall
812	812	then subtract the amount of the result of the second projection from
813	813	the amount of the result of the first projection to determine the
814	814	revenue generated as a result of the increase in the additional
815	815	sales and use tax. In the first year in which an additional sales
816	816	and use tax is increased, the no-new-revenue [effective] tax rate
817	817	for the unit is the no-new-revenue [effective] tax rate before the
818	818	increase minus a number the numerator of which is the revenue
819	819	generated as a result of the increase in the additional sales and
820	820	use tax, as determined under this subsection, and the denominator
821	821	of which is the current total value minus the new property value.
822	822	(h) If the rate of the additional sales and use tax is
823	823	decreased, the designated officer or employee shall make two
824	824	projections, in the manner provided by Subsection (d) [of this
825	825	section], of the revenue generated by the additional sales and use
826	826	tax in the following year. The first projection must take into
827	827	account the decrease and the second projection must not take into
828	828	account the decrease. The designated officer or employee shall
829	829	then subtract the amount of the result of the first projection from
830	830	the amount of the result of the second projection to determine the
831	831	revenue lost as a result of the decrease in the additional sales and
832	832	use tax. In the first year in which an additional sales and use tax
833	833	is decreased, the no-new-revenue [effective] tax rate for the unit
834	834	is the no-new-revenue [effective] tax rate before the decrease plus
835	835	a number the numerator of which is the revenue lost as a result of
836	836	the decrease in the additional sales and use tax, as determined
837	837	under this subsection, and the denominator of which is the current
838	838	total value minus the new property value.
839	839	SECTION 2.21. The heading to Section 26.043, Tax Code, is
840	840	amended to read as follows:
841	841	Sec. 26.043. ROLLBACK AND NO-NEW-REVENUE [EFFECTIVE] TAX
842	842	RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
843	843	SECTION 2.22. Sections 26.043(a) and (b), Tax Code, are
844	844	amended to read as follows:
845	845	(a) In the tax year in which a city has set an election on
846	846	the question of whether to impose a local sales and use tax under
847	847	Subchapter H, Chapter 453, Transportation Code, the officer or
848	848	employee designated to make the calculations provided by Section
849	849	26.04 may not make those calculations until the outcome of the
850	850	election is determined. If the election is determined in favor of
851	851	the imposition of the tax, the representative shall subtract from
852	852	the city's rollback and no-new-revenue [effective] tax rates the
853	853	amount that, if applied to the city's current total value, would
854	854	impose an amount equal to the amount of property taxes budgeted in
855	855	the current tax year to pay for expenses related to mass transit
856	856	services.
857	857	(b) In a tax year to which this section applies, a reference
858	858	in this chapter to the city's no-new-revenue [effective] or
859	859	rollback tax rate refers to that rate as adjusted under this
860	860	section.
861	861	SECTION 2.23. The heading to Section 26.044, Tax Code, is
862	862	amended to read as follows:
863	863	Sec. 26.044. NO-NEW-REVENUE [EFFECTIVE] TAX RATE TO PAY FOR
864	864	STATE CRIMINAL JUSTICE MANDATE.
865	865	SECTION 2.24. Sections 26.044(a), (b), and (c), Tax Code,
866	866	are amended to read as follows:
867	867	(a) The first time that a county adopts a tax rate after
868	868	September 1, 1991, in which the state criminal justice mandate
869	869	applies to the county, the no-new-revenue [effective] maintenance
870	870	and operation rate for the county is increased by the rate
871	871	calculated according to the following formula:
872	872	(State Criminal Justice Mandate) / (Current Total
873	873	Value - New Property Value)
874	874	(b) In the second and subsequent years that a county adopts
875	875	a tax rate, if the amount spent by the county for the state criminal
876	876	justice mandate increased over the previous year, the
877	877	no-new-revenue [effective] maintenance and operation rate for the
878	878	county is increased by the rate calculated according to the
879	879	following formula:
880	880	(This Year's State Criminal Justice Mandate - Previous
881	881	Year's State Criminal Justice Mandate) / (Current
882	882	Total Value - New Property Value)
883	883	(c) The county shall include a notice of the increase in the
884	884	no-new-revenue [effective] maintenance and operation rate provided
885	885	by this section, including a description and amount of the state
886	886	criminal justice mandate, in the information published under
887	887	Section 26.04(e) and Section 26.06(b) [of this code].
888	888	SECTION 2.25. Sections 26.0441(a), (b), and (c), Tax Code,
889	889	are amended to read as follows:
890	890	(a) In the first tax year in which a taxing unit adopts a tax
891	891	rate after January 1, 2000, and in which the enhanced minimum
892	892	eligibility standards for indigent health care established under
893	893	Section 61.006, Health and Safety Code, apply to the taxing unit,
894	894	the no-new-revenue [effective] maintenance and operations rate for
895	895	the taxing unit is increased by the rate computed according to the
896	896	following formula:
897	897	Amount of Increase = Enhanced Indigent Health Care
898	898	Expenditures / (Current Total Value - New Property
899	899	Value)
900	900	(b) In each subsequent tax year, if the taxing unit's
901	901	enhanced indigent health care expenses exceed the amount of those
902	902	expenses for the preceding year, the no-new-revenue [effective]
903	903	maintenance and operations rate for the taxing unit is increased by
904	904	the rate computed according to the following formula:
905	905	Amount of Increase = (Current Tax Year's Enhanced
906	906	Indigent Health Care Expenditures - Preceding Tax
907	907	Year's Indigent Health Care Expenditures) / (Current
908	908	Total Value - New Property Value)
909	909	(c) The taxing unit shall include a notice of the increase
910	910	in its no-new-revenue [effective] maintenance and operations rate
911	911	provided by this section, including a brief description and the
912	912	amount of the enhanced indigent health care expenditures, in the
913	913	information published under Section 26.04(e) and, if applicable,
914	914	Section 26.06(b).
915	915	SECTION 2.26. Section 26.05, Tax Code, is amended by
916	916	amending Subsections (b), (c), (d), (e), and (g) and adding
917	917	Subsections (d-1) and (d-2) to read as follows:
918	918	(b) A taxing unit may not impose property taxes in any year
919	919	until the governing body has adopted a tax rate for that year, and
920	920	the annual tax rate must be set by ordinance, resolution, or order,
921	921	depending on the method prescribed by law for adoption of a law by
922	922	the governing body. The vote on the ordinance, resolution, or order
923	923	setting the tax rate must be separate from the vote adopting the
924	924	budget. For a taxing unit other than a school district, the vote on
925	925	the ordinance, resolution, or order setting a tax rate that exceeds
926	926	the no-new-revenue [effective] tax rate must be a record vote, and
927	927	at least 60 percent of the members of the governing body must vote
928	928	in favor of the ordinance, resolution, or order. For a school
929	929	district, the vote on the ordinance, resolution, or order setting a
930	930	tax rate that exceeds the sum of the no-new-revenue [effective]
931	931	maintenance and operations tax rate of the district as determined
932	932	under Section 26.08(i) and the district's current debt rate must be
933	933	a record vote, and at least 60 percent of the members of the
934	934	governing body must vote in favor of the ordinance, resolution, or
935	935	order. A motion to adopt an ordinance, resolution, or order setting
936	936	a tax rate that exceeds the no-new-revenue [effective] tax rate
937	937	must be made in the following form: "I move that the property tax
938	938	rate be increased by the adoption of a tax rate of (specify tax
939	939	rate), which is effectively a (insert percentage by which the
940	940	proposed tax rate exceeds the no-new-revenue [effective] tax rate)
941	941	percent increase in the tax rate." If the ordinance, resolution, or
942	942	order sets a tax rate that, if applied to the total taxable value,
943	943	will impose an amount of taxes to fund maintenance and operation
944	944	expenditures of the taxing unit that exceeds the amount of taxes
945	945	imposed for that purpose in the preceding year, the taxing unit
946	946	must:
947	947	(1) include in the ordinance, resolution, or order in
948	948	type larger than the type used in any other portion of the document:
949	949	(A) the following statement: "THIS TAX RATE WILL
950	950	RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
951	951	TAX RATE."; and
952	952	(B) if the tax rate exceeds the no-new-revenue
953	953	[effective] maintenance and operations rate, the following
954	954	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
955	955	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
956	956	[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
957	957	TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
958	958	APPROXIMATELY $(Insert amount)."; and
959	959	(2) include on the home page of any Internet website
960	960	operated by the unit:
961	961	(A) the following statement: "(Insert name of
962	962	unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
963	963	AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
964	964	(B) if the tax rate exceeds the no-new-revenue
965	965	[effective] maintenance and operations rate, the following
966	966	statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
967	967	PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
968	968	[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
969	969	TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
970	970	APPROXIMATELY $(Insert amount)."
971	971	(c) If the governing body of a taxing unit does not adopt a
972	972	tax rate before the date required by Subsection (a), the tax rate
973	973	for the taxing unit for that tax year is the lower of the
974	974	no-new-revenue [effective] tax rate calculated for that tax year or
975	975	the tax rate adopted by the taxing unit for the preceding tax year.
976	976	A tax rate established by this subsection is treated as an adopted
977	977	tax rate. Before the fifth day after the establishment of a tax
978	978	rate by this subsection, the governing body of the taxing unit must
979	979	ratify the applicable tax rate in the manner required by Subsection
980	980	(b).
981	981	(d) The governing body of a taxing unit other than a school
982	982	district may not adopt a tax rate that exceeds the lower of the
983	983	rollback tax rate or the no-new-revenue [effective] tax rate
984	984	calculated as provided by this chapter until the governing body has
985	985	held two public hearings on the proposed tax rate and has otherwise
986	986	complied with Section 26.06 and Section 26.065. The governing body
987	987	of a taxing unit shall reduce a tax rate set by law or by vote of the
988	988	electorate to the lower of the rollback tax rate or the
989	989	no-new-revenue [effective] tax rate and may not adopt a higher rate
990	990	unless it first complies with Section 26.06.
991	991	(d-1) The governing body of a taxing unit may not hold a
992	992	public hearing on a proposed tax rate or a public meeting to adopt a
993	993	tax rate until the 14th day after the date the officer or employee
994	994	designated by the governing body of the unit to calculate the
995	995	no-new-revenue tax rate and the rollback tax rate for the unit
996	996	complies with Section 26.17.
997	997	(d-2) Notwithstanding Subsection (a), the governing body of
998	998	a taxing unit other than a school district may not adopt a tax rate
999	999	until:
1000	1000	(1) the chief appraiser of each appraisal district in
1001	1001	which the taxing unit participates has:
1002	1002	(A) delivered the notice required by Section
1003	1003	26.04(e-2); and
1004	1004	(B) incorporated the tax rate calculation forms
1005	1005	submitted to the appraisal district under Section 26.17(d)(2) by
1006	1006	the designated officer or employee of the taxing unit into the
1007	1007	property tax database maintained by the chief appraiser and made
1008	1008	them available to the public;
1009	1009	(2) the designated officer or employee of the taxing
1010	1010	unit has entered in the property tax database maintained by the
1011	1011	chief appraiser the information described by Section 26.17(b) for
1012	1012	the current tax year; and
1013	1013	(3) the taxing unit has posted the information
1014	1014	described by Section 26.18 on the Internet website used by the
1015	1015	taxing unit for that purpose.
1016	1016	(e) A person who owns taxable property is entitled to an
1017	1017	injunction restraining the collection of taxes by a taxing unit in
1018	1018	which the property is taxable if the taxing unit has not complied
1019	1019	with the requirements of this section or Section 26.04 [and the
1020	1020	failure to comply was not in good faith]. An action to enjoin the
1021	1021	collection of taxes must be filed not later than the 15th day after
1022	1022	the date the taxing unit adopts a tax rate. A property owner is not
1023	1023	required to pay the taxes imposed by a taxing unit on the owner's
1024	1024	property while an action filed by the property owner to enjoin the
1025	1025	collection of taxes imposed by the taxing unit on the owner's
1026	1026	property is pending. If the property owner pays the taxes and
1027	1027	subsequently prevails in the action, the property owner is entitled
1028	1028	to a refund of the taxes paid, together with reasonable attorney's
1029	1029	fees and court costs. The property owner is not required to apply
1030	1030	to the collector for the taxing unit to receive the refund [prior to
1031	1031	the date a taxing unit delivers substantially all of its tax bills].
1032	1032	(g) Notwithstanding Subsection (a), the governing body of a
1033	1033	school district that elects to adopt a tax rate before the adoption
1034	1034	of a budget for the fiscal year that begins in the current tax year
1035	1035	may adopt a tax rate for the current tax year before receipt of the
1036	1036	certified appraisal roll for the school district if the chief
1037	1037	appraiser of the appraisal district in which the school district
1038	1038	participates has certified to the assessor for the school district
1039	1039	an estimate of the taxable value of property in the school district
1040	1040	as provided by Section 26.01(e). If a school district adopts a tax
1041	1041	rate under this subsection, the no-new-revenue [effective] tax rate
1042	1042	and the rollback tax rate of the district shall be calculated based
1043	1043	on the certified estimate of taxable value.
1044	1044	SECTION 2.27. Section 26.052, Tax Code, is amended by
1045	1045	amending Subsection (e) and adding Subsection (f) to read as
1046	1046	follows:
1047	1047	(e) Public notice provided under Subsection (c) must
1048	1048	specify:
1049	1049	(1) the tax rate that the governing body proposes to
1050	1050	adopt;
1051	1051	(2) the date, time, and location of the meeting of the
1052	1052	governing body of the taxing unit at which the governing body will
1053	1053	consider adopting the proposed tax rate; and
1054	1054	(3) if the proposed tax rate for the taxing unit
1055	1055	exceeds the unit's no-new-revenue [effective] tax rate calculated
1056	1056	as provided by Section 26.04, a statement substantially identical
1057	1057	to the following: "The proposed tax rate would increase total taxes
1058	1058	in (name of taxing unit) by (percentage by which the proposed tax
1059	1059	rate exceeds the no-new-revenue [effective] tax rate)."
1060	1060	(f) A taxing unit to which this section applies that elects
1061	1061	to provide public notice of its proposed tax rate under Subsection
1062	1062	(c) may also provide public notice of its proposed tax rate by
1063	1063	posting notice of the proposed tax rate including the information
1064	1064	prescribed by Subsection (e) prominently on the home page of the
1065	1065	Internet website maintained by the taxing unit, if applicable.
1066	1066	SECTION 2.28. Sections 26.06(b), (c), (d), and (e), Tax
1067	1067	Code, are amended to read as follows:
1068	1068	(b) The notice of a public hearing may not be smaller than
1069	1069	one-quarter page of a standard-size or a tabloid-size newspaper,
1070	1070	and the headline on the notice must be in 24-point or larger type.
1071	1071	The notice must contain a statement in the following form:
1072	1072	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
1073	1073	"The (name of the taxing unit) will hold two public hearings
1074	1074	on a proposal to increase total tax revenues from properties on the
1075	1075	tax roll in the preceding tax year by (percentage by which proposed
1076	1076	tax rate exceeds lower of rollback tax rate or no-new-revenue
1077	1077	[effective] tax rate calculated under this chapter) percent. Your
1078	1078	individual taxes may increase at a greater or lesser rate, or even
1079	1079	decrease, depending on the tax rate that is adopted and on the
1080	1080	change in the taxable value of your property in relation to the
1081	1081	change in taxable value of all other property [and the tax rate that
1082	1082	is adopted]. The change in the taxable value of your property in
1083	1083	relation to the change in the taxable value of all other property
1084	1084	determines the distribution of the tax burden among all property
1085	1085	owners.
1086	1086	"The first public hearing will be held on (date and time) at
1087	1087	(meeting place).
1088	1088	"The second public hearing will be held on (date and time) at
1089	1089	(meeting place).
1090	1090	"(Names of all members of the governing body, showing how
1091	1091	each voted on the proposal to consider the tax increase or, if one
1092	1092	or more were absent, indicating the absences.)
1093	1093	"The average taxable value of a residence homestead in (name
1094	1094	of taxing unit) last year was $____ (average taxable value of a
1095	1095	residence homestead in the taxing unit for the preceding tax year,
1096	1096	disregarding residence homestead exemptions available only to
1097	1097	disabled persons or persons 65 years of age or older). Based on
1098	1098	last year's tax rate of $____ (preceding year's adopted tax rate)
1099	1099	per $100 of taxable value, the amount of taxes imposed last year on
1100	1100	the average home was $____ (tax on average taxable value of a
1101	1101	residence homestead in the taxing unit for the preceding tax year,
1102	1102	disregarding residence homestead exemptions available only to
1103	1103	disabled persons or persons 65 years of age or older).
1104	1104	"The average taxable value of a residence homestead in (name
1105	1105	of taxing unit) this year is $____ (average taxable value of a
1106	1106	residence homestead in the taxing unit for the current tax year,
1107	1107	disregarding residence homestead exemptions available only to
1108	1108	disabled persons or persons 65 years of age or older). If the
1109	1109	governing body adopts the no-new-revenue [effective] tax rate for
1110	1110	this year of $____ (no-new-revenue [effective] tax rate) per $100
1111	1111	of taxable value, the amount of taxes imposed this year on the
1112	1112	average home would be $____ (tax on average taxable value of a
1113	1113	residence homestead in the taxing unit for the current tax year,
1114	1114	disregarding residence homestead exemptions available only to
1115	1115	disabled persons or persons 65 years of age or older).
1116	1116	"If the governing body adopts the proposed tax rate of $____
1117	1117	(proposed tax rate) per $100 of taxable value, the amount of taxes
1118	1118	imposed this year on the average home would be $____ (tax on the
1119	1119	average taxable value of a residence in the taxing unit for the
1120	1120	current year disregarding residence homestead exemptions available
1121	1121	only to disabled persons or persons 65 years of age or older).
1122	1122	"Members of the public are encouraged to attend the hearings
1123	1123	and express their views."
1124	1124	(c) The notice of a public hearing under this section may be
1125	1125	delivered by mail to each property owner in the unit, or may be
1126	1126	published in a newspaper. If the notice is published in a
1127	1127	newspaper, it may not be in the part of the paper in which legal
1128	1128	notices and classified advertisements appear. If the taxing unit
1129	1129	operates an Internet website, the notice must also be posted
1130	1130	prominently on the home page of the website from the date the notice
1131	1131	is first published until the second public hearing is concluded.
1132	1132	(d) At the public hearings the governing body shall announce
1133	1133	the date, time, and place of the meeting at which it will vote on the
1134	1134	proposed tax rate. After each hearing the governing body shall give
1135	1135	notice of the meeting at which it will vote on the proposed tax rate
1136	1136	and the notice shall be in the same form as prescribed by
1137	1137	Subsections (b) and (c), except that it must state the following:
1138	1138	"NOTICE OF TAX REVENUE INCREASE
1139	1139	"The (name of the taxing unit) conducted public hearings on
1140	1140	(date of first hearing) and (date of second hearing) on a proposal
1141	1141	to increase the total tax revenues of the (name of the taxing unit)
1142	1142	from properties on the tax roll in the preceding year by (percentage
1143	1143	by which proposed tax rate exceeds lower of rollback tax rate or
1144	1144	no-new-revenue [effective] tax rate calculated under this chapter)
1145	1145	percent.
1146	1146	"The total tax revenue proposed to be raised last year at last
1147	1147	year's tax rate of (insert tax rate for the preceding year) for each
1148	1148	$100 of taxable value was (insert total amount of taxes imposed in
1149	1149	the preceding year).
1150	1150	"The total tax revenue proposed to be raised this year at the
1151	1151	proposed tax rate of (insert proposed tax rate) for each $100 of
1152	1152	taxable value, excluding tax revenue to be raised from new property
1153	1153	added to the tax roll this year, is (insert amount computed by
1154	1154	multiplying proposed tax rate by the difference between current
1155	1155	total value and new property value).
1156	1156	"The total tax revenue proposed to be raised this year at the
1157	1157	proposed tax rate of (insert proposed tax rate) for each $100 of
1158	1158	taxable value, including tax revenue to be raised from new property
1159	1159	added to the tax roll this year, is (insert amount computed by
1160	1160	multiplying proposed tax rate by current total value).
1161	1161	"The (governing body of the taxing unit) is scheduled to vote
1162	1162	on the tax rate that will result in that tax increase at a public
1163	1163	meeting to be held on (date of meeting) at (location of meeting,
1164	1164	including mailing address) at (time of meeting).
1165	1165	"The (governing body of the taxing unit) proposes to use the
1166	1166	increase in total tax revenue for the purpose of (description of
1167	1167	purpose of increase)."
1168	1168	(e) The meeting to vote on the tax increase may not be
1169	1169	earlier than the third day or later than the 14th day after the date
1170	1170	of the second public hearing. The meeting must be held inside the
1171	1171	boundaries of the taxing unit in a publicly owned building or, if a
1172	1172	suitable publicly owned building is not available, in a suitable
1173	1173	building to which the public normally has access. If the governing
1174	1174	body does not adopt a tax rate that exceeds the lower of the
1175	1175	rollback tax rate or the no-new-revenue [effective] tax rate by the
1176	1176	14th day, it must give a new notice under Subsection (d) before it
1177	1177	may adopt a rate that exceeds the lower of the rollback tax rate or
1178	1178	the no-new-revenue [effective] tax rate.
1179	1179	SECTION 2.29. Section 26.065(b), Tax Code, is amended to
1180	1180	read as follows:
1181	1181	(b) If the taxing unit owns, operates, or controls an
1182	1182	Internet website, the unit shall post notice of the public hearing
1183	1183	prominently on the home page of the website continuously for at
1184	1184	least seven days immediately before the public hearing on the
1185	1185	proposed tax rate increase and at least seven days immediately
1186	1186	before the date of the vote proposing the increase in the tax rate.
1187	1187	SECTION 2.30. Sections 26.08(g), (n), and (p), Tax Code,
1188	1188	are amended to read as follows:
1189	1189	(g) In a school district that received distributions from an
1190	1190	equalization tax imposed under former Chapter 18, Education Code,
1191	1191	the no-new-revenue [effective] rate of that tax as of the date of
1192	1192	the county unit system's abolition is added to the district's
1193	1193	rollback tax rate.
1194	1194	(n) For purposes of this section, the rollback tax rate of a
1195	1195	school district whose maintenance and operations tax rate for the
1196	1196	2005 tax year was $1.50 or less per $100 of taxable value is:
1197	1197	(1) for the 2006 tax year, the sum of the rate that is
1198	1198	equal to 88.67 percent of the maintenance and operations tax rate
1199	1199	adopted by the district for the 2005 tax year, the rate of $0.04 per
1200	1200	$100 of taxable value, and the district's current debt rate; and
1201	1201	(2) for the 2007 and subsequent tax years, the lesser
1202	1202	of the following:
1203	1203	(A) the sum of the following:
1204	1204	(i) the rate per $100 of taxable value that
1205	1205	is equal to the product of the state compression percentage, as
1206	1206	determined under Section 42.2516, Education Code, for the current
1207	1207	year and $1.50;
1208	1208	(ii) the rate of $0.04 per $100 of taxable
1209	1209	value;
1210	1210	(iii) the rate that is equal to the sum of
1211	1211	the differences for the 2006 and each subsequent tax year between
1212	1212	the adopted tax rate of the district for that year if the rate was
1213	1213	approved at an election under this section and the rollback tax rate
1214	1214	of the district for that year; and
1215	1215	(iv) the district's current debt rate; or
1216	1216	(B) the sum of the following:
1217	1217	(i) the no-new-revenue [effective]
1218	1218	maintenance and operations tax rate of the district as computed
1219	1219	under Subsection (i) [or (k), as applicable];
1220	1220	(ii) the rate per $100 of taxable value that
1221	1221	is equal to the product of the state compression percentage, as
1222	1222	determined under Section 42.2516, Education Code, for the current
1223	1223	year and $0.06; and
1224	1224	(iii) the district's current debt rate.
1225	1225	(p) Notwithstanding Subsections (i), (n), and (o), if for
1226	1226	the preceding tax year a school district adopted a maintenance and
1227	1227	operations tax rate that was less than the district's
1228	1228	no-new-revenue [effective] maintenance and operations tax rate for
1229	1229	that preceding tax year, the rollback tax rate of the district for
1230	1230	the current tax year is calculated as if the district adopted a
1231	1231	maintenance and operations tax rate for the preceding tax year that
1232	1232	was equal to the district's no-new-revenue [effective] maintenance
1233	1233	and operations tax rate for that preceding tax year.
1234	1234	SECTION 2.31. Section 26.08(i), Tax Code, as effective
1235	1235	September 1, 2017, is amended to read as follows:
1236	1236	(i) For purposes of this section, the no-new-revenue
1237	1237	[effective] maintenance and operations tax rate of a school
1238	1238	district is the tax rate that, applied to the current total value
1239	1239	for the district, would impose taxes in an amount that, when added
1240	1240	to state funds that would be distributed to the district under
1241	1241	Chapter 42, Education Code, for the school year beginning in the
1242	1242	current tax year using that tax rate, would provide the same amount
1243	1243	of state funds distributed under Chapter 42, Education Code, and
1244	1244	maintenance and operations taxes of the district per student in
1245	1245	weighted average daily attendance for that school year that would
1246	1246	have been available to the district in the preceding year if the
1247	1247	funding elements for Chapters 41 and 42, Education Code, for the
1248	1248	current year had been in effect for the preceding year.
1249	1249	SECTION 2.32. Section 26.16, Tax Code, is amended by
1250	1250	amending Subsections (a) and (d) and adding Subsection (a-1) to
1251	1251	read as follows:
1252	1252	(a) The county assessor-collector for each county that
1253	1253	maintains an Internet website shall post on the website of the
1254	1254	county the following information for the most recent five tax years
1255	1255	beginning with the 2012 tax year for each taxing unit all or part of
1256	1256	the territory of which is located in the county:
1257	1257	(1) the adopted tax rate;
1258	1258	(2) the maintenance and operations rate;
1259	1259	(3) the debt rate;
1260	1260	(4) the no-new-revenue [effective] tax rate;
1261	1261	(5) the no-new-revenue [effective] maintenance and
1262	1262	operations rate; and
1263	1263	(6) the rollback tax rate.
1264	1264	(a-1) For purposes of Subsection (a), a reference to the
1265	1265	no-new-revenue tax rate or the no-new-revenue maintenance and
1266	1266	operations rate includes the equivalent effective tax rate or
1267	1267	effective maintenance and operations rate for a preceding year.
1268	1268	This subsection expires January 1, 2024.
1269	1269	(d) The county assessor-collector shall post immediately
1270	1270	below the table prescribed by Subsection (c) the following
1271	1271	statement:
1272	1272	"The county is providing this table of property tax rate
1273	1273	information as a service to the residents of the county. Each
1274	1274	individual taxing unit is responsible for calculating the property
1275	1275	tax rates listed in this table pertaining to that taxing unit and
1276	1276	providing that information to the county.
1277	1277	"The adopted tax rate is the tax rate adopted by the governing
1278	1278	body of a taxing unit.
1279	1279	"The maintenance and operations rate is the component of the
1280	1280	adopted tax rate of a taxing unit that will impose the amount of
1281	1281	taxes needed to fund maintenance and operation expenditures of the
1282	1282	unit for the following year.
1283	1283	"The debt rate is the component of the adopted tax rate of a
1284	1284	taxing unit that will impose the amount of taxes needed to fund the
1285	1285	unit's debt service for the following year.
1286	1286	"The no-new-revenue [effective] tax rate is the tax rate that
1287	1287	would generate the same amount of revenue in the current tax year as
1288	1288	was generated by a taxing unit's adopted tax rate in the preceding
1289	1289	tax year from property that is taxable in both the current tax year
1290	1290	and the preceding tax year.
1291	1291	"The no-new-revenue [effective] maintenance and operations
1292	1292	rate is the tax rate that would generate the same amount of revenue
1293	1293	for maintenance and operations in the current tax year as was
1294	1294	generated by a taxing unit's maintenance and operations rate in the
1295	1295	preceding tax year from property that is taxable in both the current
1296	1296	tax year and the preceding tax year.
1297	1297	"The rollback tax rate is the highest tax rate a taxing unit
1298	1298	may adopt before requiring voter approval at an election. In the
1299	1299	case of a taxing unit other than a school district, the voters by
1300	1300	petition may require that a rollback election be held if the unit
1301	1301	adopts a tax rate in excess of the unit's rollback tax rate. In the
1302	1302	case of a school district, an election will automatically be held if
1303	1303	the district wishes to adopt a tax rate in excess of the district's
1304	1304	rollback tax rate."
1305	1305	SECTION 2.33. Chapter 26, Tax Code, is amended by adding
1306	1306	Sections 26.17 and 26.18 to read as follows:
1307	1307	Sec. 26.17. DATABASE OF PROPERTY-TAX-RELATED INFORMATION.
1308	1308	(a) The chief appraiser of each appraisal district shall create and
1309	1309	maintain a property tax database that:
1310	1310	(1) is identified by the name of the county in which
1311	1311	the appraisal district is established instead of the name of the
1312	1312	appraisal district;
1313	1313	(2) contains information that is provided by
1314	1314	designated officers or employees of the taxing units that are
1315	1315	located in the appraisal district in the manner required by rules
1316	1316	adopted by the comptroller;
1317	1317	(3) is continuously updated as preliminary and revised
1318	1318	data become available to and are provided by the designated
1319	1319	officers or employees of taxing units;
1320	1320	(4) is accessible to the public; and
1321	1321	(5) is searchable by property address and owner.
1322	1322	(b) The database must include, with respect to each property
1323	1323	listed on the appraisal roll for the appraisal district:
1324	1324	(1) the property's identification number;
1325	1325	(2) the property's market value;
1326	1326	(3) the property's taxable value;
1327	1327	(4) the name of each taxing unit in which the property
1328	1328	is located;
1329	1329	(5) for each taxing unit other than a school district
1330	1330	in which the property is located:
1331	1331	(A) the no-new-revenue tax rate; and
1332	1332	(B) the rollback tax rate;
1333	1333	(6) for each school district in which the property is
1334	1334	located:
1335	1335	(A) the rate to maintain the same amount of state
1336	1336	and local revenue per weighted student that the district received
1337	1337	in the school year beginning in the preceding tax year; and
1338	1338	(B) the rollback tax rate;
1339	1339	(7) the tax rate proposed by the governing body of each
1340	1340	taxing unit in which the property is located;
1341	1341	(8) for each taxing unit other than a school district
1342	1342	in which the property is located, the taxes that would be imposed on
1343	1343	the property if the unit adopted a tax rate equal to:
1344	1344	(A) the no-new-revenue tax rate; and
1345	1345	(B) the proposed tax rate;
1346	1346	(9) for each school district in which the property is
1347	1347	located, the taxes that would be imposed on the property if the
1348	1348	district adopted a tax rate equal to:
1349	1349	(A) the rate to maintain the same amount of state
1350	1350	and local revenue per weighted student that the district received
1351	1351	in the school year beginning in the preceding tax year; and
1352	1352	(B) the proposed tax rate;
1353	1353	(10) for each taxing unit other than a school district
1354	1354	in which the property is located, the difference between the amount
1355	1355	calculated under Subdivision (8)(A) and the amount calculated under
1356	1356	Subdivision (8)(B);
1357	1357	(11) for each school district in which the property is
1358	1358	located, the difference between the amount calculated under
1359	1359	Subdivision (9)(A) and the amount calculated under Subdivision
1360	1360	(9)(B);
1361	1361	(12) the date and location of each public hearing, if
1362	1362	applicable, on the proposed tax rate to be held by the governing
1363	1363	body of each taxing unit in which the property is located; and
1364	1364	(13) the date and location of the public meeting at
1365	1365	which the tax rate will be adopted to be held by the governing body
1366	1366	of each taxing unit in which the property is located.
1367	1367	(c) The database must provide a link to the Internet website
1368	1368	used by each taxing unit in which the property is located to post
1369	1369	the information described by Section 26.18.
1370	1370	(d) The officer or employee designated by the governing body
1371	1371	of each taxing unit to calculate the no-new-revenue tax rate and the
1372	1372	rollback tax rate for the unit must electronically:
1373	1373	(1) enter in the database the information described by
1374	1374	Subsection (b) as the information becomes available; and
1375	1375	(2) submit to the appraisal district the tax rate
1376	1376	calculation forms prepared under Section 26.04(d-1) at the same
1377	1377	time the designated officer or employee submits the tax rates to the
1378	1378	governing body of the unit under Section 26.04(e).
1379	1379	(e) The chief appraiser shall deliver by e-mail to the
1380	1380	designated officer or employee confirmation of receipt of the tax
1381	1381	rate calculation forms submitted under Subsection (d)(2). The
1382	1382	chief appraiser shall incorporate the forms into the database and
1383	1383	make them available to the public not later than the third day after
1384	1384	the date the chief appraiser receives them.
1385	1385	Sec. 26.18. POSTING OF TAX RATE AND BUDGET INFORMATION BY
1386	1386	TAXING UNIT ON WEBSITE. Each taxing unit shall maintain an Internet
1387	1387	website or have access to a generally accessible Internet website
1388	1388	that may be used for the purposes of this section. Each taxing unit
1389	1389	shall post or cause to be posted on the Internet website the
1390	1390	following information in a format prescribed by the comptroller:
1391	1391	(1) the name of each member of the governing body of
1392	1392	the taxing unit;
1393	1393	(2) the mailing address, e-mail address, and telephone
1394	1394	number of the taxing unit;
1395	1395	(3) the official contact information for each member
1396	1396	of the governing body of the taxing unit, if that information is
1397	1397	different from the information described by Subdivision (2);
1398	1398	(4) the taxing unit's budget for the preceding two
1399	1399	years;
1400	1400	(5) the taxing unit's proposed or adopted budget for
1401	1401	the current year;
1402	1402	(6) the change in the amount of the taxing unit's
1403	1403	budget from the preceding year to the current year, by dollar amount
1404	1404	and percentage;
1405	1405	(7) in the case of a taxing unit other than a school
1406	1406	district, the amount of property tax revenue budgeted for
1407	1407	maintenance and operations for:
1408	1408	(A) the preceding two years; and
1409	1409	(B) the current year;
1410	1410	(8) in the case of a taxing unit other than a school
1411	1411	district, the amount of property tax revenue budgeted for debt
1412	1412	service for:
1413	1413	(A) the preceding two years; and
1414	1414	(B) the current year;
1415	1415	(9) the tax rate for maintenance and operations
1416	1416	adopted by the taxing unit for the preceding two years;
1417	1417	(10) in the case of a taxing unit other than a school
1418	1418	district, the tax rate for debt service adopted by the unit for the
1419	1419	preceding two years;
1420	1420	(11) in the case of a school district, the interest and
1421	1421	sinking fund tax rate adopted by the district for the preceding two
1422	1422	years;
1423	1423	(12) the tax rate for maintenance and operations
1424	1424	proposed by the taxing unit for the current year;
1425	1425	(13) in the case of a taxing unit other than a school
1426	1426	district, the tax rate for debt service proposed by the unit for the
1427	1427	current year;
1428	1428	(14) in the case of a school district, the interest and
1429	1429	sinking fund tax rate proposed by the district for the current year;
1430	1430	and
1431	1431	(15) the most recent financial audit of the taxing
1432	1432	unit.
1433	1433	SECTION 2.34. Section 41.03(a), Tax Code, is amended to
1434	1434	read as follows:
1435	1435	(a) A taxing unit is entitled to challenge before the
1436	1436	appraisal review board:
1437	1437	(1) [the level of appraisals of any category of
1438	1438	property in the district or in any territory in the district, but
1439	1439	not the appraised value of a single taxpayer's property;
1440	1440	[(2)] an exclusion of property from the appraisal
1441	1441	records;
1442	1442	(2) [(3)] a grant in whole or in part of a partial
1443	1443	exemption;
1444	1444	(3) [(4)] a determination that land qualifies for
1445	1445	appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
1446	1446	(4) [(5)] failure to identify the taxing unit as one
1447	1447	in which a particular property is taxable.
1448	1448	SECTION 2.35. Section 41.44(d), Tax Code, is amended to
1449	1449	read as follows:
1450	1450	(d) A notice of protest is sufficient if it identifies the
1451	1451	protesting property owner, including a person claiming an ownership
1452	1452	interest in the property even if that person is not listed on the
1453	1453	appraisal records as an owner of the property, identifies the
1454	1454	property that is the subject of the protest, and indicates apparent
1455	1455	dissatisfaction with some determination of the appraisal office.
1456	1456	The notice need not be on an official form, but the comptroller
1457	1457	shall prescribe a form that provides for more detail about the
1458	1458	nature of the protest. The form must permit a property owner to
1459	1459	include each property in the appraisal district that is the subject
1460	1460	of a protest. The form must permit a property owner to request that
1461	1461	the protest be heard by a special panel established under Section
1462	1462	6.425 if the protest will be determined by an appraisal review board
1463	1463	to which that section applies and the property is described by
1464	1464	Section 6.425(b). The comptroller, each appraisal office, and each
1465	1465	appraisal review board shall make the forms readily available and
1466	1466	deliver one to a property owner on request.
1467	1467	SECTION 2.36. Section 41.45, Tax Code, is amended by
1468	1468	amending Subsection (d) and adding Subsections (d-1), (d-2), and
1469	1469	(d-3) to read as follows:
1470	1470	(d) This subsection does not apply to a special panel
1471	1471	established under Section 6.425. An appraisal review board
1472	1472	consisting of more than three members may sit in panels of not fewer
1473	1473	than three members to conduct protest hearings. [However, the
1474	1474	determination of a protest heard by a panel must be made by the
1475	1475	board.] If the recommendation of a panel is not accepted by the
1476	1476	board, the board may refer the matter for rehearing to a panel
1477	1477	composed of members who did not hear the original protest [hearing]
1478	1478	or, if there are not at least three members who did not hear the
1479	1479	original protest, the board may determine the protest. [Before
1480	1480	determining a protest or conducting a rehearing before a new panel
1481	1481	or the board, the board shall deliver notice of the hearing or
1482	1482	meeting to determine the protest in accordance with the provisions
1483	1483	of this subchapter.]
1484	1484	(d-1) An appraisal review board to which Section 6.425
1485	1485	applies shall sit in special panels established under that section
1486	1486	to conduct protest hearings. A special panel may conduct a protest
1487	1487	hearing relating to property only if the property is described by
1488	1488	Section 6.425(b) and the property owner has requested that a
1489	1489	special panel conduct the hearing or if the protest is assigned to
1490	1490	the special panel under Section 6.425(f). If the recommendation of
1491	1491	a special panel is not accepted by the board, the board may refer
1492	1492	the matter for rehearing to another special panel composed of
1493	1493	members who did not hear the original protest or, if there are not
1494	1494	at least three other special panel members who did not hear the
1495	1495	original protest, the board may determine the protest.
1496	1496	(d-2) The determination of a protest heard by a panel under
1497	1497	Subsection (d) or (d-1) must be made by the board.
1498	1498	(d-3) The board must deliver notice of a hearing or meeting
1499	1499	to determine a protest heard by a panel, or to rehear a protest,
1500	1500	under Subsection (d) or (d-1) in accordance with the provisions of
1501	1501	this subchapter.
1502	1502	SECTION 2.37. Section 41.46(a), Tax Code, is amended to
1503	1503	read as follows:
1504	1504	(a) The appraisal review board before which a protest
1505	1505	hearing is scheduled shall deliver written notice to the property
1506	1506	owner initiating a protest of the date, time, [and] place, and
1507	1507	subject matter of [fixed for] the hearing on the protest and of the
1508	1508	property owner's entitlement to a postponement of the hearing as
1509	1509	provided by Section 41.45 unless the property owner waives in
1510	1510	writing notice of the hearing. The board shall deliver the notice
1511	1511	not later than the 15th day before the date of the hearing.
1512	1512	SECTION 2.38. Section 41.461, Tax Code, is amended to read
1513	1513	as follows:
1514	1514	Sec. 41.461. NOTICE OF CERTAIN MATTERS BEFORE HEARING;
1515	1515	DELIVERY OF REQUESTED INFORMATION. (a) At least 14 days before the
1516	1516	first scheduled [a] hearing on a protest, the chief appraiser
1517	1517	shall:
1518	1518	(1) deliver a copy of the pamphlet prepared by the
1519	1519	comptroller under Section 5.06 [5.06(a)] to the property owner
1520	1520	initiating the protest if the owner is representing himself, or to
1521	1521	an agent representing the owner if requested by the agent;
1522	1522	(2) inform the property owner that the owner or the
1523	1523	agent of the owner is entitled on request to [may inspect and may
1524	1524	obtain] a copy of the data, schedules, formulas, and all other
1525	1525	information the chief appraiser will [plans to] introduce at the
1526	1526	hearing to establish any matter at issue; and
1527	1527	(3) deliver a copy of the hearing procedures
1528	1528	established by the appraisal review board under Section 41.66 to
1529	1529	the property owner.
1530	1530	(b) The chief appraiser may not charge a property owner or
1531	1531	the designated agent of the owner for copies provided to the [an]
1532	1532	owner or designated agent under this section, regardless of the
1533	1533	manner in which the copies are prepared or delivered [may not exceed
1534	1534	the charge for copies of public information as provided under
1535	1535	Subchapter F, Chapter 552, Government Code, except:
1536	1536	[(1) the total charge for copies provided in
1537	1537	connection with a protest of the appraisal of residential property
1538	1538	may not exceed $15 for each residence; and
1539	1539	[(2) the total charge for copies provided in
1540	1540	connection with a protest of the appraisal of a single unit of
1541	1541	property subject to appraisal, other than residential property, may
1542	1542	not exceed $25].
1543	1543	(c) A chief appraiser must deliver information requested by
1544	1544	a property owner or the agent of the owner under Subsection (a)(2):
1545	1545	(1) by regular first-class mail;
1546	1546	(2) in an electronic format as provided by an
1547	1547	agreement under Section 1.085; or
1548	1548	(3) subject to Subsection (d), by referring the
1549	1549	property owner or the agent of the owner to the exact Internet
1550	1550	location or uniform resource locator (URL) address on an Internet
1551	1551	website maintained by the appraisal district on which the requested
1552	1552	information is identifiable and readily available.
1553	1553	(d) If a chief appraiser provides a property owner or the
1554	1554	agent of the owner the Internet location or address of information
1555	1555	under Subsection (c)(3), the notice must contain a statement in a
1556	1556	conspicuous font that clearly indicates that the property owner or
1557	1557	the agent of the owner may on request receive the information by
1558	1558	regular first-class mail. On request by a property owner or the
1559	1559	agent of the owner, the chief appraiser must provide the
1560	1560	information by regular first-class mail.
1561	1561	SECTION 2.39. Section 41.47, Tax Code, is amended by adding
1562	1562	Subsections (c-2) and (f) and amending Subsections (d) and (e) to
1563	1563	read as follows:
1564	1564	(c-2) The board may not determine the appraised value of the
1565	1565	property that is the subject of a protest to be an amount greater
1566	1566	than the appraised value of the property as shown in the appraisal
1567	1567	records submitted to the board by the chief appraiser under Section
1568	1568	25.22 or 25.23.
1569	1569	(d) The board shall deliver by certified mail:
1570	1570	(1) a notice of issuance of the order and a copy of the
1571	1571	order to the property owner and the chief appraiser; and
1572	1572	(2) a copy of the appraisal review board survey form
1573	1573	prepared under Section 5.104 and instructions for completing and
1574	1574	submitting the form to the property owner.
1575	1575	(e) The notice of the issuance of the order must contain a
1576	1576	prominently printed statement in upper-case bold lettering
1577	1577	informing the property owner in clear and concise language of the
1578	1578	property owner's right to appeal the order of the board [board's
1579	1579	decision] to district court. The statement must describe the
1580	1580	deadline prescribed by Section 42.06(a) [of this code] for filing a
1581	1581	written notice of appeal[,] and the deadline prescribed by Section
1582	1582	42.21(a) [of this code] for filing the petition for review with the
1583	1583	district court.
1584	1584	(f) The appraisal review board shall take the actions
1585	1585	required by Subsections (a) and (d) not later than the 15th day
1586	1586	after the date the hearing on the protest is concluded.
1587	1587	SECTION 2.40. Section 41.66, Tax Code, is amended by
1588	1588	amending Subsections (h), (i), (j), and (k) and adding Subsections
1589	1589	(j-1), (k-1), and (p) to read as follows:
1590	1590	(h) The appraisal review board shall postpone a hearing on a
1591	1591	protest if the property owner or the designated agent of the owner
1592	1592	requests additional time to prepare for the hearing and establishes
1593	1593	to the board that the chief appraiser failed to comply with Section
1594	1594	41.461. The board is not required to postpone a hearing more than
1595	1595	one time under this subsection.
1596	1596	(i) A hearing on a protest filed by a property owner or the
1597	1597	designated agent of the owner [who is not represented by an agent
1598	1598	designated under Section 1.111] shall be set for a time and date
1599	1599	certain. If the hearing is not commenced within two hours of the
1600	1600	time set for the hearing, the appraisal review board shall postpone
1601	1601	the hearing on the request of the property owner or the designated
1602	1602	agent of the owner.
1603	1603	(j) On the request of a property owner or the [a] designated
1604	1604	agent of the owner, an appraisal review board shall schedule
1605	1605	hearings on protests concerning up to 20 designated properties to
1606	1606	be held consecutively on the same day. The designated properties
1607	1607	must be identified in the same notice of protest, and the notice
1608	1608	must contain in boldfaced type the statement "request for same-day
1609	1609	protest hearings." A property owner or the designated agent of the
1610	1610	owner may [not] file more than one request under this subsection
1611	1611	with the appraisal review board in the same tax year. The appraisal
1612	1612	review board may schedule hearings on protests concerning more than
1613	1613	20 properties filed by the same property owner or the designated
1614	1614	agent of the owner and may use different panels to conduct the
1615	1615	hearings based on the board's customary scheduling. The appraisal
1616	1616	review board may follow the practices customarily used by the board
1617	1617	in the scheduling of hearings under this subsection.
1618	1618	(j-1) An appraisal review board may schedule the hearings on
1619	1619	all protests filed by a property owner or the designated agent of
1620	1620	the owner to be held consecutively. The notice of the hearings must
1621	1621	state the date and time that the first hearing will begin, state the
1622	1622	date the last hearing will end, and list the order in which the
1623	1623	hearings will be held. The order of the hearings listed in the
1624	1624	notice may not be changed without the agreement of the property
1625	1625	owner or the designated agent of the owner, the chief appraiser, and
1626	1626	the appraisal review board. The board may not reschedule a hearing
1627	1627	for which notice is given under this subsection to a date earlier
1628	1628	than the seventh day after the date the last hearing was scheduled
1629	1629	to end unless agreed to by the property owner or the designated
1630	1630	agent of the owner, the chief appraiser, and the appraisal review
1631	1631	board. Unless agreed to by the parties, the board must provide
1632	1632	written notice of the date and time of the rescheduled hearing to
1633	1633	the property owner or the designated agent of the owner not later
1634	1634	than the seventh day before the date of the hearing.
1635	1635	(k) This subsection does not apply to a special panel
1636	1636	established under Section 6.425. If an appraisal review board sits
1637	1637	in panels to conduct protest hearings, protests shall be randomly
1638	1638	assigned to panels, except that the board may consider the type of
1639	1639	property subject to the protest or the ground of the protest for the
1640	1640	purpose of using the expertise of a particular panel in hearing
1641	1641	protests regarding particular types of property or based on
1642	1642	particular grounds. If a protest is scheduled to be heard by a
1643	1643	particular panel, the protest may not be reassigned to another
1644	1644	panel without the consent of the property owner or designated
1645	1645	agent. If the appraisal review board has cause to reassign a
1646	1646	protest to another panel, a property owner or designated agent may
1647	1647	agree to reassignment of the protest or may request that the hearing
1648	1648	on the protest be postponed. The board shall postpone the hearing
1649	1649	on that request. A change of members of a panel because of a
1650	1650	conflict of interest, illness, or inability to continue
1651	1651	participating in hearings for the remainder of the day does not
1652	1652	constitute reassignment of a protest to another panel.
1653	1653	(k-1) On the request of a property owner, an appraisal
1654	1654	review board to which Section 6.425 applies shall assign a protest
1655	1655	relating to property described by Section 6.425(b) to a special
1656	1656	panel. In addition, the chairman of the appraisal review board may
1657	1657	assign a protest relating to property not described by Section
1658	1658	6.425(b) to a special panel as authorized by Section 6.425(f).
1659	1659	Protests assigned to special panels shall be randomly assigned to
1660	1660	those panels. If a protest is scheduled to be heard by a particular
1661	1661	special panel, the protest may not be reassigned to another special
1662	1662	panel without the consent of the property owner or designated
1663	1663	agent. If the board has cause to reassign a protest to another
1664	1664	special panel, a property owner or designated agent may agree to
1665	1665	reassignment of the protest or may request that the hearing on the
1666	1666	protest be postponed. The board shall postpone the hearing on that
1667	1667	request. A change of members of a special panel because of a
1668	1668	conflict of interest, illness, or inability to continue
1669	1669	participating in hearings for the remainder of the day does not
1670	1670	constitute reassignment of a protest to another special panel.
1671	1671	(p) At the end of a hearing on a protest, the appraisal
1672	1672	review board shall provide the property owner or the designated
1673	1673	agent of the owner one or more documents indicating that the members
1674	1674	of the board hearing the protest signed the affidavit required by
1675	1675	Subsection (g).
1676	1676	SECTION 2.41. Section 41.67(d), Tax Code, is amended to
1677	1677	read as follows:
1678	1678	(d) Information that was previously requested under Section
1679	1679	41.461 by the protesting party that was not delivered [made
1680	1680	available] to the protesting party at least 14 days before the first
1681	1681	scheduled [or postponed] hearing may not be used or offered in any
1682	1682	form as evidence in the hearing, including as a document or through
1683	1683	argument or testimony.
1684	1684	SECTION 2.42. Section 41.71, Tax Code, is amended to read as
1685	1685	follows:
1686	1686	Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An
1687	1687	appraisal review board by rule shall provide for hearings on
1688	1688	protests [in the evening or] on a Saturday or after 5 p.m. on a
1689	1689	weekday [Sunday].
1690	1690	(b) The board may not schedule:
1691	1691	(1) the first hearing on a protest held on a weekday
1692	1692	evening to begin after 7 p.m.; or
1693	1693	(2) a hearing on a protest on a Sunday.
1694	1694	SECTION 2.43. Section 41A.06(b), Tax Code, as effective
1695	1695	September 1, 2017, is amended to read as follows:
1696	1696	(b) To initially qualify to serve as an arbitrator under
1697	1697	this chapter, a person must:
1698	1698	(1) meet the following requirements, as applicable:
1699	1699	(A) be licensed as an attorney in this state; or
1700	1700	(B) have:
1701	1701	(i) completed at least 30 hours of training
1702	1702	in arbitration and alternative dispute resolution procedures from a
1703	1703	university, college, or legal or real estate trade association; and
1704	1704	(ii) been licensed or certified
1705	1705	continuously during the five years preceding the date the person
1706	1706	agrees to serve as an arbitrator as:
1707	1707	(a) a real estate broker or sales
1708	1708	agent under Chapter 1101, Occupations Code;
1709	1709	(b) a real estate appraiser under
1710	1710	Chapter 1103, Occupations Code; or
1711	1711	(c) a certified public accountant
1712	1712	under Chapter 901, Occupations Code; [and]
1713	1713	(2) complete the course for training and education of
1714	1714	appraisal review board members established under Section 5.041 and
1715	1715	be issued a certificate indicating course completion;
1716	1716	(3) complete the training program on property tax law
1717	1717	for the training and education of arbitrators established under
1718	1718	Section 5.043; and
1719	1719	(4) agree to conduct an arbitration for a fee that is
1720	1720	not more than:
1721	1721	(A) $400, if the property qualifies as the
1722	1722	owner's residence homestead under Section 11.13 and the appraised
1723	1723	or market value, as applicable, of the property is $500,000 or less,
1724	1724	as determined by the order;
1725	1725	(B) $450, if the property qualifies as the
1726	1726	owner's residence homestead under Section 11.13 and the appraised
1727	1727	or market value, as applicable, of the property is more than
1728	1728	$500,000, as determined by the order;
1729	1729	(C) $450, if the property does not qualify as the
1730	1730	owner's residence homestead under Section 11.13 and the appraised
1731	1731	or market value, as applicable, of the property is $1 million or
1732	1732	less, as determined by the order;
1733	1733	(D) $750, if the property does not qualify as the
1734	1734	owner's residence homestead under Section 11.13 and the appraised
1735	1735	or market value, as applicable, of the property is more than $1
1736	1736	million but not more than $2 million, as determined by the order;
1737	1737	(E) $1,000, if the property does not qualify as
1738	1738	the owner's residence homestead under Section 11.13 and the
1739	1739	appraised or market value, as applicable, of the property is more
1740	1740	than $2 million but not more than $3 million, as determined by the
1741	1741	order; or
1742	1742	(F) $1,500, if the property does not qualify as
1743	1743	the owner's residence homestead under Section 11.13 and the
1744	1744	appraised or market value, as applicable, of the property is more
1745	1745	than $3 million but not more than $5 million, as determined by the
1746	1746	order.
1747	1747	SECTION 2.44. Section 41A.061(b), Tax Code, is amended to
1748	1748	read as follows:
1749	1749	(b) To renew the person's agreement to serve as an
1750	1750	arbitrator, the person must:
1751	1751	(1) file a renewal application with the comptroller at
1752	1752	the time and in the manner prescribed by the comptroller;
1753	1753	(2) continue to meet the requirements provided by
1754	1754	Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; and
1755	1755	(3) during the preceding two years have completed at
1756	1756	least eight hours of continuing education in arbitration and
1757	1757	alternative dispute resolution procedures offered by a university,
1758	1758	college, real estate trade association, or legal association.
1759	1759	SECTION 2.45. Section 41A.09(b), Tax Code, is amended to
1760	1760	read as follows:
1761	1761	(b) An award under this section:
1762	1762	(1) must include a determination of the appraised or
1763	1763	market value, as applicable, of the property that is the subject of
1764	1764	the appeal;
1765	1765	(2) may include any remedy or relief a court may order
1766	1766	under Chapter 42 in an appeal relating to the appraised or market
1767	1767	value of property;
1768	1768	(3) shall specify the arbitrator's fee, which may not
1769	1769	exceed the amount provided by Section 41A.06(b)(4) [41A.06(b)(2)];
1770	1770	(4) is final and may not be appealed except as
1771	1771	permitted under Section 171.088, Civil Practice and Remedies Code,
1772	1772	for an award subject to that section; and
1773	1773	(5) may be enforced in the manner provided by
1774	1774	Subchapter D, Chapter 171, Civil Practice and Remedies Code.
1775	1775	SECTION 2.46. Section 45.105(e), Education Code, is amended
1776	1776	to read as follows:
1777	1777	(e) The governing body of an independent school district
1778	1778	that governs a junior college district under Subchapter B, Chapter
1779	1779	130, in a county with a population of more than two million may
1780	1780	dedicate a specific percentage of the local tax levy to the use of
1781	1781	the junior college district for facilities and equipment or for the
1782	1782	maintenance and operating expenses of the junior college district.
1783	1783	To be effective, the dedication must be made by the governing body
1784	1784	on or before the date on which the governing body adopts its tax
1785	1785	rate for a year. The amount of local tax funds derived from the
1786	1786	percentage of the local tax levy dedicated to a junior college
1787	1787	district from a tax levy may not exceed the amount that would be
1788	1788	levied by five percent of the no-new-revenue [effective] tax rate
1789	1789	for the tax year calculated as provided by Section 26.04, Tax Code,
1790	1790	on all property taxable by the school district. All real property
1791	1791	purchased with these funds is the property of the school district,
1792	1792	but is subject to the exclusive control of the governing body of the
1793	1793	junior college district for as long as the junior college district
1794	1794	uses the property for educational purposes.
1795	1795	SECTION 2.47. Section 403.302(o), Government Code, is
1796	1796	amended to read as follows:
1797	1797	(o) The comptroller shall adopt rules governing the conduct
1798	1798	of the study after consultation with the comptroller's property tax
1799	1799	administration advisory board [Comptroller's Property Value Study
1800	1800	Advisory Committee].
1801	1801	SECTION 2.48. Section 102.007(d), Local Government Code, is
1802	1802	amended to read as follows:
1803	1803	(d) An adopted budget must contain a cover page that
1804	1804	includes:
1805	1805	(1) one of the following statements in 18-point or
1806	1806	larger type that accurately describes the adopted budget:
1807	1807	(A) "This budget will raise more revenue from
1808	1808	property taxes than last year's budget by an amount of (insert total
1809	1809	dollar amount of increase), which is a (insert percentage increase)
1810	1810	percent increase from last year's budget. The property tax revenue
1811	1811	to be raised from new property added to the tax roll this year is
1812	1812	(insert amount computed by multiplying the proposed tax rate by the
1813	1813	value of new property added to the roll).";
1814	1814	(B) "This budget will raise less revenue from
1815	1815	property taxes than last year's budget by an amount of (insert total
1816	1816	dollar amount of decrease), which is a (insert percentage decrease)
1817	1817	percent decrease from last year's budget. The property tax revenue
1818	1818	to be raised from new property added to the tax roll this year is
1819	1819	(insert amount computed by multiplying the proposed tax rate by the
1820	1820	value of new property added to the roll)."; or
1821	1821	(C) "This budget will raise the same amount of
1822	1822	revenue from property taxes as last year's budget. The property
1823	1823	tax revenue to be raised from new property added to the tax roll
1824	1824	this year is (insert amount computed by multiplying the proposed
1825	1825	tax rate by the value of new property added to the roll).";
1826	1826	(2) the record vote of each member of the governing
1827	1827	body by name voting on the adoption of the budget;
1828	1828	(3) the municipal property tax rates for the preceding
1829	1829	fiscal year, and each municipal property tax rate that has been
1830	1830	adopted or calculated for the current fiscal year, including:
1831	1831	(A) the property tax rate;
1832	1832	(B) the no-new-revenue [effective] tax rate;
1833	1833	(C) the no-new-revenue [effective] maintenance
1834	1834	and operations tax rate;
1835	1835	(D) the rollback tax rate; and
1836	1836	(E) the debt rate; and
1837	1837	(4) the total amount of municipal debt obligations.
1838	1838	SECTION 2.49. Section 111.008(d), Local Government Code, is
1839	1839	amended to read as follows:
1840	1840	(d) An adopted budget must contain a cover page that
1841	1841	includes:
1842	1842	(1) one of the following statements in 18-point or
1843	1843	larger type that accurately describes the adopted budget:
1844	1844	(A) "This budget will raise more revenue from
1845	1845	property taxes than last year's budget by an amount of (insert total
1846	1846	dollar amount of increase), which is a (insert percentage increase)
1847	1847	percent increase from last year's budget. The property tax revenue
1848	1848	to be raised from new property added to the tax roll this year is
1849	1849	(insert amount computed by multiplying the proposed tax rate by the
1850	1850	value of new property added to the roll).";
1851	1851	(B) "This budget will raise less revenue from
1852	1852	property taxes than last year's budget by an amount of (insert total
1853	1853	dollar amount of decrease), which is a (insert percentage decrease)
1854	1854	percent decrease from last year's budget. The property tax revenue
1855	1855	to be raised from new property added to the tax roll this year is
1856	1856	(insert amount computed by multiplying the proposed tax rate by the
1857	1857	value of new property added to the roll)."; or
1858	1858	(C) "This budget will raise the same amount of
1859	1859	revenue from property taxes as last year's budget. The property
1860	1860	tax revenue to be raised from new property added to the tax roll
1861	1861	this year is (insert amount computed by multiplying the proposed
1862	1862	tax rate by the value of new property added to the roll).";
1863	1863	(2) the record vote of each member of the
1864	1864	commissioners court by name voting on the adoption of the budget;
1865	1865	(3) the county property tax rates for the preceding
1866	1866	fiscal year, and each county property tax rate that has been adopted
1867	1867	or calculated for the current fiscal year, including:
1868	1868	(A) the property tax rate;
1869	1869	(B) the no-new-revenue [effective] tax rate;
1870	1870	(C) the no-new-revenue [effective] maintenance
1871	1871	and operations tax rate;
1872	1872	(D) the rollback tax rate; and
1873	1873	(E) the debt rate; and
1874	1874	(4) the total amount of county debt obligations.
1875	1875	SECTION 2.50. Section 111.039(d), Local Government Code, is
1876	1876	amended to read as follows:
1877	1877	(d) An adopted budget must contain a cover page that
1878	1878	includes:
1879	1879	(1) one of the following statements in 18-point or
1880	1880	larger type that accurately describes the adopted budget:
1881	1881	(A) "This budget will raise more revenue from
1882	1882	property taxes than last year's budget by an amount of (insert total
1883	1883	dollar amount of increase), which is a (insert percentage increase)
1884	1884	percent increase from last year's budget. The property tax revenue
1885	1885	to be raised from new property added to the tax roll this year is
1886	1886	(insert amount computed by multiplying the proposed tax rate by the
1887	1887	value of new property added to the roll).";
1888	1888	(B) "This budget will raise less revenue from
1889	1889	property taxes than last year's budget by an amount of (insert total
1890	1890	dollar amount of decrease), which is a (insert percentage decrease)
1891	1891	percent decrease from last year's budget. The property tax revenue
1892	1892	to be raised from new property added to the tax roll this year is
1893	1893	(insert amount computed by multiplying the proposed tax rate by the
1894	1894	value of new property added to the roll)."; or
1895	1895	(C) "This budget will raise the same amount of
1896	1896	revenue from property taxes as last year's budget. The property
1897	1897	tax revenue to be raised from new property added to the tax roll
1898	1898	this year is (insert amount computed by multiplying the proposed
1899	1899	tax rate by the value of new property added to the roll).";
1900	1900	(2) the record vote of each member of the
1901	1901	commissioners court by name voting on the adoption of the budget;
1902	1902	(3) the county property tax rates for the preceding
1903	1903	fiscal year, and each county property tax rate that has been adopted
1904	1904	or calculated for the current fiscal year, including:
1905	1905	(A) the property tax rate;
1906	1906	(B) the no-new-revenue [effective] tax rate;
1907	1907	(C) the no-new-revenue [effective] maintenance
1908	1908	and operations tax rate;
1909	1909	(D) the rollback tax rate; and
1910	1910	(E) the debt rate; and
1911	1911	(4) the total amount of county debt obligations.
1912	1912	SECTION 2.51. Section 111.068(c), Local Government Code, is
1913	1913	amended to read as follows:
1914	1914	(c) An adopted budget must contain a cover page that
1915	1915	includes:
1916	1916	(1) one of the following statements in 18-point or
1917	1917	larger type that accurately describes the adopted budget:
1918	1918	(A) "This budget will raise more revenue from
1919	1919	property taxes than last year's budget by an amount of (insert total
1920	1920	dollar amount of increase), which is a (insert percentage increase)
1921	1921	percent increase from last year's budget. The property tax revenue
1922	1922	to be raised from new property added to the tax roll this year is
1923	1923	(insert amount computed by multiplying the proposed tax rate by the
1924	1924	value of new property added to the roll).";
1925	1925	(B) "This budget will raise less revenue from
1926	1926	property taxes than last year's budget by an amount of (insert total
1927	1927	dollar amount of decrease), which is a (insert percentage decrease)
1928	1928	percent decrease from last year's budget. The property tax revenue
1929	1929	to be raised from new property added to the tax roll this year is
1930	1930	(insert amount computed by multiplying the proposed tax rate by the
1931	1931	value of new property added to the roll)."; or
1932	1932	(C) "This budget will raise the same amount of
1933	1933	revenue from property taxes as last year's budget. The property
1934	1934	tax revenue to be raised from new property added to the tax roll
1935	1935	this year is (insert amount computed by multiplying the proposed
1936	1936	tax rate by the value of new property added to the roll).";
1937	1937	(2) the record vote of each member of the
1938	1938	commissioners court by name voting on the adoption of the budget;
1939	1939	(3) the county property tax rates for the preceding
1940	1940	fiscal year, and each county property tax rate that has been adopted
1941	1941	or calculated for the current fiscal year, including:
1942	1942	(A) the property tax rate;
1943	1943	(B) the no-new-revenue [effective] tax rate;
1944	1944	(C) the no-new-revenue [effective] maintenance
1945	1945	and operations tax rate;
1946	1946	(D) the rollback tax rate; and
1947	1947	(E) the debt rate; and
1948	1948	(4) the total amount of county debt obligations.
1949	1949	SECTION 2.52. Sections 140.010(a), (d), (e), and (f), Local
1950	1950	Government Code, are amended to read as follows:
1951	1951	(a) In this section, "no-new-revenue [effective] tax rate"
1952	1952	and "rollback tax rate" mean the no-new-revenue [effective] tax
1953	1953	rate and rollback tax rate of a county or municipality, as
1954	1954	applicable, as calculated under Chapter 26, Tax Code.
1955	1955	(d) A county or municipality that proposes a property tax
1956	1956	rate that does not exceed the lower of the no-new-revenue
1957	1957	[effective] tax rate or the rollback tax rate shall provide the
1958	1958	following notice:
1959	1959	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
1960	1960	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
1961	1961	"A tax rate of $______ per $100 valuation has been proposed by the
1962	1962	governing body of (insert name of county or municipality).
1963	1963	PROPOSED TAX RATE $______ per $100
1964	1964	PRECEDING YEAR'S TAX RATE $______ per $100
1965	1965	NO-NEW-REVENUE [EFFECTIVE] TAX RATE $______ per $100
1966	1966	"The no-new-revenue [effective] tax rate is the total tax rate
1967	1967	needed to raise the same amount of property tax revenue for (insert
1968	1968	name of county or municipality) from the same properties in both the
1969	1969	(insert preceding tax year) tax year and the (insert current tax
1970	1970	year) tax year.
1971	1971	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
1972	1972	FOLLOWS:
1973	1973	property tax amount = (rate) x (taxable value of your property) /
1974	1974	100
1975	1975	"For assistance or detailed information about tax calculations,
1976	1976	please contact:
1977	1977	(insert name of county or municipal tax assessor-collector)
1978	1978	(insert name of county or municipality) tax
1979	1979	assessor-collector
1980	1980	(insert address)
1981	1981	(insert telephone number)
1982	1982	(insert e-mail address)
1983	1983	(insert Internet website address, if applicable)"
1984	1984	(e) A county or municipality that proposes a property tax
1985	1985	rate that exceeds the lower of the no-new-revenue [effective] tax
1986	1986	rate or the rollback tax rate shall provide the following notice:
1987	1987	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
1988	1988	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
1989	1989	"A tax rate of $_____ per $100 valuation has been proposed for
1990	1990	adoption by the governing body of (insert name of county or
1991	1991	municipality). This rate exceeds the lower of the no-new-revenue
1992	1992	[effective] or rollback tax rate, and state law requires that two
1993	1993	public hearings be held by the governing body before adopting the
1994	1994	proposed tax rate. The governing body of (insert name of county or
1995	1995	municipality) proposes to use revenue attributable to the tax rate
1996	1996	increase for the purpose of (description of purpose of increase).
1997	1997	PROPOSED TAX RATE$______ per $100
1998	1998	PRECEDING YEAR'S TAX RATE$______ per $100
1999	1999	NO-NEW-REVENUE [EFFECTIVE] TAX RATE$______ per $100
2000	2000	ROLLBACK TAX RATE$______ per $100
2001	2001	"The no-new-revenue [effective] tax rate is the total tax rate
2002	2002	needed to raise the same amount of property tax revenue for (insert
2003	2003	name of county or municipality) from the same properties in both the
2004	2004	(insert preceding tax year) tax year and the (insert current tax
2005	2005	year) tax year.
2006	2006	"The rollback tax rate is the highest tax rate that (insert name of
2007	2007	county or municipality) may adopt before the voters are entitled to
2008	2008	petition for an election to limit the rate that may be approved to
2009	2009	the rollback tax rate.
2010	2010	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
2011	2011	FOLLOWS:
2012	2012	property tax amount = (rate) x (taxable value of your property) /
2013	2013	100
2014	2014	"For assistance or detailed information about tax calculations,
2015	2015	please contact:
2016	2016	(insert name of county or municipal tax assessor-collector)
2017	2017	(insert name of county or municipality) tax
2018	2018	assessor-collector
2019	2019	(insert address)
2020	2020	(insert telephone number)
2021	2021	(insert e-mail address)
2022	2022	(insert Internet website address, if applicable)
2023	2023	"You are urged to attend and express your views at the following
2024	2024	public hearings on the proposed tax rate:
2025	2025	First Hearing: (insert date and time) at (insert location of
2026	2026	meeting).
2027	2027	Second Hearing: (insert date and time) at (insert location
2028	2028	of meeting)."
2029	2029	(f) A county or municipality shall:
2030	2030	(1) provide the notice required by Subsection (d) or
2031	2031	(e), as applicable, not later than the later of September 1 or the
2032	2032	30th day after the first date that the taxing unit has received each
2033	2033	applicable certified appraisal roll by:
2034	2034	(A) publishing the notice in a newspaper having
2035	2035	general circulation in:
2036	2036	(i) the county, in the case of notice
2037	2037	published by a county; or
2038	2038	(ii) the county in which the municipality
2039	2039	is located or primarily located, in the case of notice published by
2040	2040	a municipality; or
2041	2041	(B) mailing the notice to each property owner in:
2042	2042	(i) the county, in the case of notice
2043	2043	provided by a county; or
2044	2044	(ii) the municipality, in the case of
2045	2045	notice provided by a municipality; and
2046	2046	(2) post the notice prominently on the home page of the
2047	2047	Internet website of the county or municipality, if applicable,
2048	2048	beginning not later than the later of September 1 or the 30th day
2049	2049	after the first date that the taxing unit has received each
2050	2050	applicable certified appraisal roll and continuing until the county
2051	2051	or municipality adopts a tax rate.
2052	2052	SECTION 2.53. Section 8876.152(b), Special District Local
2053	2053	Laws Code, is amended to read as follows:
2054	2054	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
2055	2055	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
2056	2056	78th Legislature, Regular Session, 2003, applies] to the district.
2057	2057	SECTION 2.54. Section 49.236(a), Water Code, as added by
2058	2058	Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
2059	2059	Session, 2003, is amended to read as follows:
2060	2060	(a) Before the board adopts an ad valorem tax rate for the
2061	2061	district for debt service, operation and maintenance purposes, or
2062	2062	contract purposes, the board shall give notice of each meeting of
2063	2063	the board at which the adoption of a tax rate will be considered.
2064	2064	The notice must:
2065	2065	(1) contain a statement in substantially the following
2066	2066	form:
2067	2067	"NOTICE OF PUBLIC HEARING ON TAX RATE
2068	2068	"The (name of the district) will hold a public hearing on a
2069	2069	proposed tax rate for the tax year (year of tax levy) on (date and
2070	2070	time) at (meeting place). Your individual taxes may increase at a
2071	2071	greater or lesser rate, or even decrease, depending on the tax rate
2072	2072	that is adopted and on the change in the taxable value of your
2073	2073	property in relation to the change in taxable value of all other
2074	2074	property [and the tax rate that is adopted]. The change in the
2075	2075	taxable value of your property in relation to the change in the
2076	2076	taxable value of all other property determines the distribution of
2077	2077	the tax burden among all property owners.
2078	2078	"(Names of all board members and, if a vote was taken, an
2079	2079	indication of how each voted on the proposed tax rate and an
2080	2080	indication of any absences.)";
2081	2081	(2) contain the following information:
2082	2082	(A) the district's total adopted tax rate for the
2083	2083	preceding year and the proposed tax rate, expressed as an amount per
2084	2084	$100;
2085	2085	(B) the difference, expressed as an amount per
2086	2086	$100 and as a percent increase or decrease, as applicable, in the
2087	2087	proposed tax rate compared to the adopted tax rate for the preceding
2088	2088	year;
2089	2089	(C) the average appraised value of a residence
2090	2090	homestead in the district in the preceding year and in the current
2091	2091	year; the district's total homestead exemption, other than an
2092	2092	exemption available only to disabled persons or persons 65 years of
2093	2093	age or older, applicable to that appraised value in each of those
2094	2094	years; and the average taxable value of a residence homestead in
2095	2095	the district in each of those years, disregarding any homestead
2096	2096	exemption available only to disabled persons or persons 65 years of
2097	2097	age or older;
2098	2098	(D) the amount of tax that would have been
2099	2099	imposed by the district in the preceding year on a residence
2100	2100	homestead appraised at the average appraised value of a residence
2101	2101	homestead in that year, disregarding any homestead exemption
2102	2102	available only to disabled persons or persons 65 years of age or
2103	2103	older;
2104	2104	(E) the amount of tax that would be imposed by the
2105	2105	district in the current year on a residence homestead appraised at
2106	2106	the average appraised value of a residence homestead in that year,
2107	2107	disregarding any homestead exemption available only to disabled
2108	2108	persons or persons 65 years of age or older, if the proposed tax
2109	2109	rate is adopted; [and]
2110	2110	(F) the difference between the amounts of tax
2111	2111	calculated under Paragraphs (D) and (E), expressed in dollars and
2112	2112	cents and described as the annual percentage increase or decrease,
2113	2113	as applicable, in the tax to be imposed by the district on the
2114	2114	average residence homestead in the district in the current year if
2115	2115	the proposed tax rate is adopted; and
2116	2116	(G) if the proposed combined debt service,
2117	2117	operation and maintenance, and contract tax rate would authorize
2118	2118	the qualified voters of the district by petition to require a
2119	2119	rollback election to be held in the district, a description of the
2120	2120	purpose of the proposed tax increase; and
2121	2121	(3) contain a statement in substantially the following
2122	2122	form:
2123	2123	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
2124	2124	"If taxes on the average residence homestead increase by more
2125	2125	than eight percent, the qualified voters of the district by
2126	2126	petition may require that an election be held to determine whether
2127	2127	to reduce the operation and maintenance tax rate to the rollback tax
2128	2128	rate under Section 49.236(d), Water Code."
2129	2129	SECTION 2.55. The following provisions are repealed:
2130	2130	(1) Sections 403.302(m-1) and (n), Government Code;
2131	2131	(2) Sections 5.103(e) and (f), Tax Code;
2132	2132	(3) Section 6.412(e), Tax Code;
2133	2133	(4) Section 41A.06(c), Tax Code;
2134	2134	(5) Section 49.236, Water Code, as added by Chapter
2135	2135	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2136	2136	2003; and
2137	2137	(6) Section 49.2361, Water Code.
2138	2138	SECTION 2.56. Section 5.041, Tax Code, as amended by this
2139	2139	Act, applies only to an appraisal review board member appointed to
2140	2140	serve a term of office that begins on or after January 1, 2018.
2141	2141	SECTION 2.57. The comptroller shall implement Section
2142	2142	5.043, Tax Code, as added by this Act, as soon as practicable after
2143	2143	January 1, 2018.
2144	2144	SECTION 2.58. (a) The comptroller shall comply with
2145	2145	Sections 5.07(f), (g), (h), and (i), Tax Code, as added by this Act,
2146	2146	as soon as practicable after January 1, 2018.
2147	2147	(b) The comptroller shall comply with Section 5.091, Tax
2148	2148	Code, as amended by this Act, not later than January 1, 2021.
2149	2149	SECTION 2.59. The comptroller shall prepare and make
2150	2150	available the survey form and instructions for completing and
2151	2151	submitting the form required by Section 5.104, Tax Code, as added by
2152	2152	this Act, as soon as practicable after January 1, 2018. An
2153	2153	appraisal district is not required to provide the survey form or
2154	2154	instructions under a requirement of that section until the form and
2155	2155	instructions are prepared and made available by the comptroller.
2156	2156	SECTION 2.60. Section 6.41(d-9), Tax Code, as amended by
2157	2157	this Act, applies only to the appointment of appraisal review board
2158	2158	members to terms beginning on or after January 1, 2019.
2159	2159	SECTION 2.61. Section 6.412, Tax Code, as amended by this
2160	2160	Act, does not affect the eligibility of a person serving on an
2161	2161	appraisal review board immediately before January 1, 2018, to
2162	2162	continue to serve on the board for the term to which the member was
2163	2163	appointed.
2164	2164	SECTION 2.62. Section 6.42(d), Tax Code, as added by this
2165	2165	Act, applies only to a recommendation, determination, decision, or
2166	2166	other action by an appraisal review board or a panel of such a board
2167	2167	on or after January 1, 2018. A recommendation, determination,
2168	2168	decision, or other action by an appraisal review board or a panel of
2169	2169	such a board before January 1, 2018, is governed by the law as it
2170	2170	existed immediately before that date, and that law is continued in
2171	2171	effect for that purpose.
2172	2172	SECTION 2.63. Section 25.25(c), Tax Code, as amended by
2173	2173	this Act, applies only to a motion to correct an appraisal roll
2174	2174	filed on or after January 1, 2018. A motion to correct an appraisal
2175	2175	roll filed before January 1, 2018, is governed by the law in effect
2176	2176	on the date the motion was filed, and the former law is continued in
2177	2177	effect for that purpose.
2178	2178	SECTION 2.64. (a) An appraisal district established in a
2179	2179	county with a population of 120,000 or more and each taxing unit
2180	2180	located wholly or partly in such an appraisal district shall comply
2181	2181	with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18,
2182	2182	Tax Code, as added by this Act, beginning with the 2019 tax year.
2183	2183	(b) An appraisal district established in a county with a
2184	2184	population of less than 120,000 and each taxing unit located wholly
2185	2185	in such an appraisal district shall comply with Sections
2186	2186	26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18, Tax Code, as
2187	2187	added by this Act, beginning with the 2020 tax year.
2188	2188	SECTION 2.65. (a) Except as provided by Subsections (b) and
2189	2189	(c) of this section, the changes in law made by this Act to Chapter
2190	2190	41, Tax Code, apply only to a protest for which the notice of
2191	2191	protest was filed by a property owner or the designated agent of the
2192	2192	owner with the appraisal review board established for an appraisal
2193	2193	district on or after January 1, 2018.
2194	2194	(b) Section 41.03(a), Tax Code, as amended by this Act,
2195	2195	applies only to a challenge under Chapter 41, Tax Code, for which a
2196	2196	challenge petition is filed on or after January 1, 2018. A
2197	2197	challenge under Chapter 41, Tax Code, for which a challenge
2198	2198	petition was filed before January 1, 2018, is governed by the law in
2199	2199	effect on the date the challenge petition was filed, and the former
2200	2200	law is continued in effect for that purpose.
2201	2201	(c) Sections 41.45 and 41.66, Tax Code, as amended by this
2202	2202	Act, apply only to a protest filed under Chapter 41, Tax Code, on or
2203	2203	after January 1, 2019. A protest filed under that chapter before
2204	2204	January 1, 2019, is governed by the law in effect on the date the
2205	2205	protest was filed, and the former law is continued in effect for
2206	2206	that purpose.
2207	2207	SECTION 2.66. The changes in law made by this Act in the
2208	2208	qualifications of persons serving as arbitrators in binding
2209	2209	arbitrations of appeals of appraisal review board orders do not
2210	2210	affect the entitlement of a person serving as an arbitrator
2211	2211	immediately before January 1, 2018, to continue to serve as an
2212	2212	arbitrator and to conduct hearings on arbitrations until the person
2213	2213	is required to renew the person's agreement with the comptroller to
2214	2214	serve as an arbitrator. The changes in law apply only to a person
2215	2215	who initially qualifies to serve as an arbitrator or who renews the
2216	2216	person's agreement with the comptroller to serve as an arbitrator
2217	2217	on or after January 1, 2018. This Act does not prohibit a person who
2218	2218	is serving as an arbitrator on January 1, 2018, from renewing the
2219	2219	person's agreement with the comptroller to serve as an arbitrator
2220	2220	if the person has the qualifications required for an arbitrator
2221	2221	under the Tax Code as amended by this Act.
2222	2222	SECTION 2.67. (a) Except as otherwise provided by this
2223	2223	article, this article takes effect January 1, 2018.
2224	2224	(b) The following provisions take effect September 1, 2018:
2225	2225	(1) Sections 6.41(b) and (d-9), Tax Code, as amended
2226	2226	by this Act;
2227	2227	(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
2228	2228	as added by this Act;
2229	2229	(3) Section 6.414(d), Tax Code, as amended by this
2230	2230	Act;
2231	2231	(4) Section 6.425, Tax Code, as added by this Act;
2232	2232	(5) Section 41.44(d), Tax Code, as amended by this
2233	2233	Act;
2234	2234	(6) Section 41.45(d), Tax Code, as amended by this
2235	2235	Act;
2236	2236	(7) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
2237	2237	as added by this Act;
2238	2238	(8) Section 41.66(k), Tax Code, as amended by this
2239	2239	Act; and
2240	2240	(9) Section 41.66(k-1), Tax Code, as added by this
2241	2241	Act.
2242	2242	(c) The following provisions take effect January 1, 2019:
2243	2243	(1) Sections 26.04(d-1), (d-2), (e-2), (e-3), and
2244	2244	(e-4), Tax Code, as added by this Act;
2245	2245	(2) Sections 26.04(e-1) and (g), Tax Code, as amended
2246	2246	by this Act;
2247	2247	(3) Sections 26.05(d-1) and (d-2), Tax Code, as added
2248	2248	by this Act; and
2249	2249	(4) Section 26.05(e), Tax Code, as amended by this
2250	2250	Act.
2251	2251	ARTICLE 3. LIMITATION ON INCREASES IN APPRAISED VALUE OF
2252	2252	COMMERCIAL OR INDUSTRIAL REAL PROPERTY
2253	2253	SECTION 3.01. Section 1.12(d), Tax Code, is amended to read
2254	2254	as follows:
2255	2255	(d) For purposes of this section, the appraisal ratio of a
2256	2256	homestead to which Section 23.23 applies or of commercial or
2257	2257	industrial real property to which Section 23.231 applies is the
2258	2258	ratio of the property's market value as determined by the appraisal
2259	2259	district or appraisal review board, as applicable, to the market
2260	2260	value of the property according to law. The appraisal ratio is not
2261	2261	calculated according to the appraised value of the property as
2262	2262	limited by Section 23.23 or 23.231.
2263	2263	SECTION 3.02. Subchapter B, Chapter 23, Tax Code, is
2264	2264	amended by adding Section 23.231 to read as follows:
2265	2265	Sec. 23.231. LIMITATION ON APPRAISED VALUE OF COMMERCIAL OR
2266	2266	INDUSTRIAL REAL PROPERTY. (a) In this section, "new improvement"
2267	2267	means an improvement to commercial or industrial real property made
2268	2268	after the most recent appraisal of the property that increases the
2269	2269	market value of the property and the value of which is not included
2270	2270	in the appraised value of the property for the preceding tax
2271	2271	year. The term does not include repairs to or ordinary maintenance
2272	2272	of an existing structure or the grounds or another feature of the
2273	2273	property.
2274	2274	(b) This section does not apply to:
2275	2275	(1) residential property;
2276	2276	(2) a mineral interest; or
2277	2277	(3) property appraised under Subchapter C, D, E, F, G,
2278	2278	or H.
2279	2279	(c) Notwithstanding the requirements of Section 25.18 and
2280	2280	regardless of whether the appraisal office has appraised the
2281	2281	property and determined the market value of the property for the tax
2282	2282	year, an appraisal office may increase the appraised value of a
2283	2283	parcel of commercial or industrial real property for a tax year to
2284	2284	an amount not to exceed the lesser of:
2285	2285	(1) the market value of the property for the most
2286	2286	recent tax year that the market value was determined by the
2287	2287	appraisal office; or
2288	2288	(2) the sum of:
2289	2289	(A) 20 percent of the appraised value of the
2290	2290	property for the preceding tax year;
2291	2291	(B) the appraised value of the property for the
2292	2292	preceding tax year; and
2293	2293	(C) the market value of all new improvements to
2294	2294	the property.
2295	2295	(d) When appraising a parcel of commercial or industrial
2296	2296	real property, the chief appraiser shall:
2297	2297	(1) appraise the property at its market value; and
2298	2298	(2) include in the appraisal records both the market
2299	2299	value of the property and the amount computed under Subsection
2300	2300	(c)(2).
2301	2301	(e) The limitation provided by Subsection (c) takes effect
2302	2302	as to a parcel of commercial or industrial real property on January
2303	2303	1 of the tax year following the first tax year in which the owner
2304	2304	owns the property on January 1 and in which the property qualifies
2305	2305	as commercial or industrial real property under this section.
2306	2306	Except as provided by Subsection (f), the limitation expires on
2307	2307	January 1 of the tax year following the first tax year in which the
2308	2308	owner of the property ceases to own the property or the property
2309	2309	ceases to qualify as commercial or industrial real property.
2310	2310	(f) If property subject to a limitation under this section
2311	2311	is owned by two or more persons, the limitation expires on January 1
2312	2312	of the tax year following the first tax year in which the ownership
2313	2313	of at least a 50 percent interest in the property is sold or
2314	2314	otherwise transferred.
2315	2315	(g) Notwithstanding Subsections (a) and (c) and except as
2316	2316	provided by Subdivision (2) of this subsection, an improvement to
2317	2317	property that would otherwise constitute a new improvement is not
2318	2318	treated as a new improvement if the improvement is a replacement
2319	2319	structure for a structure that was rendered unusable by a casualty
2320	2320	or by wind or water damage. For purposes of appraising the property
2321	2321	under Subsection (c) in the tax year in which the structure would
2322	2322	have constituted a new improvement:
2323	2323	(1) the appraised value the property would have had in
2324	2324	the preceding tax year if the casualty or damage had not occurred is
2325	2325	considered to be the appraised value of the property for that year,
2326	2326	regardless of whether that appraised value exceeds the actual
2327	2327	appraised value of the property for that year as limited by
2328	2328	Subsection (c); and
2329	2329	(2) the replacement structure is considered to be a
2330	2330	new improvement only if:
2331	2331	(A) the square footage of the replacement
2332	2332	structure exceeds that of the replaced structure as that structure
2333	2333	existed before the casualty or damage occurred; or
2334	2334	(B) the exterior of the replacement structure is
2335	2335	of higher quality construction and composition than that of the
2336	2336	replaced structure.
2337	2337	(h) In this subsection, "disaster recovery program" means
2338	2338	the disaster recovery program administered by the General Land
2339	2339	Office that is funded with community development block grant
2340	2340	disaster recovery money authorized by the Consolidated Security,
2341	2341	Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
2342	2342	L. No. 110-329), and the Consolidated and Further Continuing
2343	2343	Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
2344	2344	Subsection (g)(2), and only to the extent necessary to satisfy the
2345	2345	requirements of the disaster recovery program, a replacement
2346	2346	structure described by that subdivision is not considered to be a
2347	2347	new improvement if to satisfy the requirements of the disaster
2348	2348	recovery program it was necessary that:
2349	2349	(1) the square footage of the replacement structure
2350	2350	exceed that of the replaced structure as that structure existed
2351	2351	before the casualty or damage occurred; or
2352	2352	(2) the exterior of the replacement structure be of
2353	2353	higher quality construction and composition than that of the
2354	2354	replaced structure.
2355	2355	SECTION 3.03. (a) Effective January 1, 2018, Sections
2356	2356	25.19(b) and (g), Tax Code, are amended to read as follows:
2357	2357	(b) The chief appraiser shall separate real from personal
2358	2358	property and include in the notice for each:
2359	2359	(1) a list of the taxing units in which the property is
2360	2360	taxable;
2361	2361	(2) the appraised value of the property in the
2362	2362	preceding year;
2363	2363	(3) the taxable value of the property in the preceding
2364	2364	year for each taxing unit taxing the property;
2365	2365	(4) the appraised value of the property for the
2366	2366	current year, the kind and amount of each exemption and partial
2367	2367	exemption, if any, approved for the property for the current year
2368	2368	and for the preceding year, and, if an exemption or partial
2369	2369	exemption that was approved for the preceding year was canceled or
2370	2370	reduced for the current year, the amount of the exemption or partial
2371	2371	exemption canceled or reduced;
2372	2372	(4-a) a statement of whether the property qualifies
2373	2373	for the limitation on appraised value provided by Section 23.231;
2374	2374	(5) if the appraised value is greater than it was in
2375	2375	the preceding year, the amount of tax that would be imposed on the
2376	2376	property on the basis of the tax rate for the preceding year;
2377	2377	(6) in italic typeface, the following
2378	2378	statement: "The Texas Legislature does not set the amount of your
2379	2379	local taxes. Your property tax burden is decided by your locally
2380	2380	elected officials, and all inquiries concerning your taxes should
2381	2381	be directed to those officials";
2382	2382	(7) a detailed explanation of the time and procedure
2383	2383	for protesting the value;
2384	2384	(8) the date and place the appraisal review board will
2385	2385	begin hearing protests; and
2386	2386	(9) a brief explanation that the governing body of
2387	2387	each taxing unit decides whether or not taxes on the property will
2388	2388	increase and the appraisal district only determines the value of
2389	2389	the property.
2390	2390	(g) By April 1 or as soon thereafter as practicable if the
2391	2391	property is a single-family residence that qualifies for an
2392	2392	exemption under Section 11.13, or by May 1 or as soon thereafter as
2393	2393	practicable in connection with any other property, the chief
2394	2394	appraiser shall deliver a written notice to the owner of each
2395	2395	property not included in a notice required to be delivered under
2396	2396	Subsection (a), if the property was reappraised in the current tax
2397	2397	year, if the ownership of the property changed during the preceding
2398	2398	year, or if the property owner or the agent of a property owner
2399	2399	authorized under Section 1.111 makes a written request for the
2400	2400	notice. The chief appraiser shall separate real from personal
2401	2401	property and include in the notice for each property:
2402	2402	(1) the appraised value of the property in the
2403	2403	preceding year;
2404	2404	(2) the appraised value of the property for the
2405	2405	current year and the kind of each partial exemption, if any,
2406	2406	approved for the current year;
2407	2407	(2-a) a statement of whether the property qualifies
2408	2408	for the limitation on appraised value provided by Section 23.231;
2409	2409	(3) a detailed explanation of the time and procedure
2410	2410	for protesting the value; and
2411	2411	(4) the date and place the appraisal review board will
2412	2412	begin hearing protests.
2413	2413	(b) Effective January 1, 2020, Sections 25.19(b) and (i),
2414	2414	Tax Code, are amended to read as follows:
2415	2415	(b) The chief appraiser shall separate real from personal
2416	2416	property and include in the notice for each:
2417	2417	(1) a list of the taxing units in which the property is
2418	2418	taxable;
2419	2419	(2) the appraised value of the property in the
2420	2420	preceding year;
2421	2421	(3) the taxable value of the property in the preceding
2422	2422	year for each taxing unit taxing the property;
2423	2423	(4) the appraised value of the property for the
2424	2424	current year, the kind and amount of each exemption and partial
2425	2425	exemption, if any, approved for the property for the current year
2426	2426	and for the preceding year, and, if an exemption or partial
2427	2427	exemption that was approved for the preceding year was canceled or
2428	2428	reduced for the current year, the amount of the exemption or partial
2429	2429	exemption canceled or reduced;
2430	2430	(4-a) a statement of whether the property qualifies
2431	2431	for the limitation on appraised value provided by Section 23.231;
2432	2432	(5) [if the appraised value is greater than it was in
2433	2433	the preceding year, the amount of tax that would be imposed on the
2434	2434	property on the basis of the tax rate for the preceding year;
2435	2435	[(6)] in italic typeface, the following
2436	2436	statement: "The Texas Legislature does not set the amount of your
2437	2437	local taxes. Your property tax burden is decided by your locally
2438	2438	elected officials, and all inquiries concerning your taxes should
2439	2439	be directed to those officials";
2440	2440	(6) [(7)] a detailed explanation of the time and
2441	2441	procedure for protesting the value;
2442	2442	(7) [(8)] the date and place the appraisal review
2443	2443	board will begin hearing protests; and
2444	2444	(8) [(9)] a brief explanation that the governing body
2445	2445	of each taxing unit decides whether or not taxes on the property
2446	2446	will increase and the appraisal district only determines the value
2447	2447	of the property.
2448	2448	(i) Delivery with a notice required by Subsection (a) or (g)
2449	2449	of a copy of the pamphlet published by the comptroller under Section
2450	2450	5.06 or a copy of the notice published by the chief appraiser under
2451	2451	Section 41.70 is sufficient to comply with the requirement that the
2452	2452	notice include the information specified by Subsection (b)(6)
2453	2453	[(b)(7)] or (g)(3), as applicable.
2454	2454	SECTION 3.04. Section 41.41(a), Tax Code, is amended to
2455	2455	read as follows:
2456	2456	(a) A property owner is entitled to protest before the
2457	2457	appraisal review board the following actions:
2458	2458	(1) determination of the appraised value of the
2459	2459	owner's property or, in the case of land appraised as provided by
2460	2460	Subchapter C, D, E, or H, Chapter 23, determination of its appraised
2461	2461	or market value;
2462	2462	(2) unequal appraisal of the owner's property;
2463	2463	(3) inclusion of the owner's property on the appraisal
2464	2464	records;
2465	2465	(4) denial to the property owner in whole or in part of
2466	2466	a partial exemption;
2467	2467	(4-a) determination that the owner's property does not
2468	2468	qualify for the limitation on appraised value provided by Section
2469	2469	23.231;
2470	2470	(5) determination that the owner's land does not
2471	2471	qualify for appraisal as provided by Subchapter C, D, E, or H,
2472	2472	Chapter 23;
2473	2473	(6) identification of the taxing units in which the
2474	2474	owner's property is taxable in the case of the appraisal district's
2475	2475	appraisal roll;
2476	2476	(7) determination that the property owner is the owner
2477	2477	of property;
2478	2478	(8) a determination that a change in use of land
2479	2479	appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
2480	2480	or
2481	2481	(9) any other action of the chief appraiser, appraisal
2482	2482	district, or appraisal review board that applies to and adversely
2483	2483	affects the property owner.
2484	2484	SECTION 3.05. Section 42.26(d), Tax Code, is amended to
2485	2485	read as follows:
2486	2486	(d) For purposes of this section, the value of the property
2487	2487	subject to the suit and the value of a comparable property or sample
2488	2488	property that is used for comparison must be the market value
2489	2489	determined by the appraisal district when the property is [a
2490	2490	residence homestead] subject to the limitation on appraised value
2491	2491	imposed by Section 23.23 or 23.231.
2492	2492	SECTION 3.06. Sections 403.302(d) and (i), Government Code,
2493	2493	are amended to read as follows:
2494	2494	(d) For the purposes of this section, "taxable value" means
2495	2495	the market value of all taxable property less:
2496	2496	(1) the total dollar amount of any residence homestead
2497	2497	exemptions lawfully granted under Section 11.13(b) or (c), Tax
2498	2498	Code, in the year that is the subject of the study for each school
2499	2499	district;
2500	2500	(2) one-half of the total dollar amount of any
2501	2501	residence homestead exemptions granted under Section 11.13(n), Tax
2502	2502	Code, in the year that is the subject of the study for each school
2503	2503	district;
2504	2504	(3) the total dollar amount of any exemptions granted
2505	2505	before May 31, 1993, within a reinvestment zone under agreements
2506	2506	authorized by Chapter 312, Tax Code;
2507	2507	(4) subject to Subsection (e), the total dollar amount
2508	2508	of any captured appraised value of property that:
2509	2509	(A) is within a reinvestment zone created on or
2510	2510	before May 31, 1999, or is proposed to be included within the
2511	2511	boundaries of a reinvestment zone as the boundaries of the zone and
2512	2512	the proposed portion of tax increment paid into the tax increment
2513	2513	fund by a school district are described in a written notification
2514	2514	provided by the municipality or the board of directors of the zone
2515	2515	to the governing bodies of the other taxing units in the manner
2516	2516	provided by former Section 311.003(e), Tax Code, before May 31,
2517	2517	1999, and within the boundaries of the zone as those boundaries
2518	2518	existed on September 1, 1999, including subsequent improvements to
2519	2519	the property regardless of when made;
2520	2520	(B) generates taxes paid into a tax increment
2521	2521	fund created under Chapter 311, Tax Code, under a reinvestment zone
2522	2522	financing plan approved under Section 311.011(d), Tax Code, on or
2523	2523	before September 1, 1999; and
2524	2524	(C) is eligible for tax increment financing under
2525	2525	Chapter 311, Tax Code;
2526	2526	(5) the total dollar amount of any captured appraised
2527	2527	value of property that:
2528	2528	(A) is within a reinvestment zone:
2529	2529	(i) created on or before December 31, 2008,
2530	2530	by a municipality with a population of less than 18,000; and
2531	2531	(ii) the project plan for which includes
2532	2532	the alteration, remodeling, repair, or reconstruction of a
2533	2533	structure that is included on the National Register of Historic
2534	2534	Places and requires that a portion of the tax increment of the zone
2535	2535	be used for the improvement or construction of related facilities
2536	2536	or for affordable housing;
2537	2537	(B) generates school district taxes that are paid
2538	2538	into a tax increment fund created under Chapter 311, Tax Code; and
2539	2539	(C) is eligible for tax increment financing under
2540	2540	Chapter 311, Tax Code;
2541	2541	(6) the total dollar amount of any exemptions granted
2542	2542	under Section 11.251 or 11.253, Tax Code;
2543	2543	(7) the difference between the comptroller's estimate
2544	2544	of the market value and the productivity value of land that
2545	2545	qualifies for appraisal on the basis of its productive capacity,
2546	2546	except that the productivity value estimated by the comptroller may
2547	2547	not exceed the fair market value of the land;
2548	2548	(8) the portion of the appraised value of residence
2549	2549	homesteads of individuals who receive a tax limitation under
2550	2550	Section 11.26, Tax Code, on which school district taxes are not
2551	2551	imposed in the year that is the subject of the study, calculated as
2552	2552	if the residence homesteads were appraised at the full value
2553	2553	required by law;
2554	2554	(9) a portion of the market value of property not
2555	2555	otherwise fully taxable by the district at market value because of:
2556	2556	(A) action required by statute or the
2557	2557	constitution of this state, other than Section 11.311, Tax Code,
2558	2558	that, if the tax rate adopted by the district is applied to it,
2559	2559	produces an amount equal to the difference between the tax that the
2560	2560	district would have imposed on the property if the property were
2561	2561	fully taxable at market value and the tax that the district is
2562	2562	actually authorized to impose on the property, if this subsection
2563	2563	does not otherwise require that portion to be deducted; or
2564	2564	(B) action taken by the district under Subchapter
2565	2565	B or C, Chapter 313, Tax Code, before the expiration of the
2566	2566	subchapter;
2567	2567	(10) the market value of all tangible personal
2568	2568	property, other than manufactured homes, owned by a family or
2569	2569	individual and not held or used for the production of income;
2570	2570	(11) the appraised value of property the collection of
2571	2571	delinquent taxes on which is deferred under Section 33.06, Tax
2572	2572	Code;
2573	2573	(12) the portion of the appraised value of property
2574	2574	the collection of delinquent taxes on which is deferred under
2575	2575	Section 33.065, Tax Code; and
2576	2576	(13) the amount by which the market value of property
2577	2577	[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
2578	2578	applies exceeds the appraised value of that property as calculated
2579	2579	under Section 23.23 or 23.231, Tax Code, as applicable [that
2580	2580	section].
2581	2581	(i) If the comptroller determines in the study that the
2582	2582	market value of property in a school district as determined by the
2583	2583	appraisal district that appraises property for the school district,
2584	2584	less the total of the amounts and values listed in Subsection (d) as
2585	2585	determined by that appraisal district, is valid, the comptroller,
2586	2586	in determining the taxable value of property in the school district
2587	2587	under Subsection (d), shall for purposes of Subsection (d)(13)
2588	2588	subtract from the market value as determined by the appraisal
2589	2589	district of properties [residence homesteads] to which Section
2590	2590	23.23 or 23.231, Tax Code, applies the amount by which that amount
2591	2591	exceeds the appraised value of those properties as calculated by
2592	2592	the appraisal district under Section 23.23 or 23.231, Tax Code, as
2593	2593	applicable. If the comptroller determines in the study that the
2594	2594	market value of property in a school district as determined by the
2595	2595	appraisal district that appraises property for the school district,
2596	2596	less the total of the amounts and values listed in Subsection (d) as
2597	2597	determined by that appraisal district, is not valid, the
2598	2598	comptroller, in determining the taxable value of property in the
2599	2599	school district under Subsection (d), shall for purposes of
2600	2600	Subsection (d)(13) subtract from the market value as estimated by
2601	2601	the comptroller of properties [residence homesteads] to which
2602	2602	Section 23.23 or 23.231, Tax Code, applies the amount by which that
2603	2603	amount exceeds the appraised value of those properties as
2604	2604	calculated by the appraisal district under Section 23.23 or 23.231,
2605	2605	Tax Code, as applicable.
2606	2606	SECTION 3.07. This article applies only to the appraisal of
2607	2607	commercial or industrial real property for ad valorem tax purposes
2608	2608	for a tax year that begins on or after January 1, 2018.
2609	2609	SECTION 3.08. Except as otherwise provided by this article,
2610	2610	this article takes effect January 1, 2018, but only if the
2611	2611	constitutional amendment proposed by the 85th Legislature, 1st
2612	2612	Called Session, 2017, to authorize the legislature to limit
2613	2613	increases in the appraised value of commercial or industrial real
2614	2614	property for ad valorem tax purposes to 20 percent or more of the
2615	2615	appraised value of the property for the preceding tax year is
2616	2616	approved by the voters. If that amendment is not approved by the
2617	2617	voters, this article has no effect.
2618	2618	ARTICLE 4. EFFECTIVE DATE
2619	2619	SECTION 4.01. Except as otherwise provided by this Act,
2620	2620	this Act takes effect January 1, 2018.