85S10083 SMH/TJB-F
By: Bonnen of Brazoria H.B. No. 3
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. SHORT TITLE
SECTION 1.01. This Act may be cited as the Property Tax
Payer Empowerment Act of 2017.
ARTICLE 2. ADMINISTRATION OF AD VALOREM TAX SYSTEM
SECTION 2.01. Section 1.085(a), Tax Code, is amended to
read as follows:
(a) Notwithstanding any other provision in this title and
except as provided by this section, any notice, rendition,
application form, or completed application, or information
requested under Section 41.461(a)(2), that is required or permitted
by this title to be delivered between a chief appraiser, an
appraisal district, an appraisal review board, or any combination
of those persons and a property owner or [between a chief appraiser,
an appraisal district, an appraisal review board, or any
combination of those persons and] a person designated by a property
owner under Section 1.111(f) may be delivered in an electronic
format if the chief appraiser and the property owner or person
designated by the owner agree under this section.
SECTION 2.02. Chapter 5, Tax Code, is amended by adding
Section 5.01 to read as follows:
Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD.
(a) The comptroller shall appoint the property tax administration
advisory board to advise the comptroller with respect to the
division or divisions within the office of the comptroller with
primary responsibility for state administration of property
taxation and state oversight of appraisal districts and local tax
offices. The advisory board may make recommendations to the
comptroller regarding improving the effectiveness and efficiency
of the property tax system, best practices, and complaint
resolution procedures. The comptroller shall post the
recommendations of the advisory board on the comptroller's Internet
website.
(b) The advisory board is composed of at least six members
appointed by the comptroller. The members of the board should
include:
(1) representatives of property tax payers, appraisal
districts, and school districts; and
(2) a person who has knowledge or experience in
conducting ratio studies.
(c) The members of the advisory board serve at the pleasure
of the comptroller.
(d) Any advice to the comptroller relating to a matter
described by Subsection (a) that is provided by a member of the
advisory board must be provided at a meeting called by the
comptroller.
(e) Chapter 2110, Government Code, does not apply to the
advisory board.
SECTION 2.03. Sections 5.041(b), (c), and (e-1), Tax Code,
are amended to read as follows:
(b) A member of the appraisal review board established for
an appraisal district must complete the course established under
Subsection (a). The course must provide at least eight hours of
classroom training and education. A member of the appraisal review
board may not participate in a hearing conducted by the board unless
the person has completed the course established under Subsection
(a) and received a certificate of course completion.
(c) The comptroller may contract with service providers to
assist with the duties imposed under Subsection (a), but the course
required may not be provided by an appraisal district, the chief
appraiser or another employee of an appraisal district, a member of
the board of directors of an appraisal district, a member of an
appraisal review board, or a taxing unit. The comptroller may
assess a fee to recover a portion of the costs incurred for the
training course, but the fee may not exceed $50 per person trained.
If the training is provided to an individual other than a member of
an appraisal review board, the comptroller may assess a fee not to
exceed $50 per person trained.
(e-1) In addition to the course established under
Subsection (a), the comptroller shall approve curricula and provide
materials for use in a continuing education course for members of an
appraisal review board. The course must provide at least four hours
of classroom training and education. The curricula and materials
must include information regarding:
(1) the cost, income, and market data comparison
methods of appraising property;
(2) the appraisal of business personal property;
(3) the determination of capitalization rates for
property appraisal purposes;
(4) the duties of an appraisal review board;
(5) the requirements regarding the independence of an
appraisal review board from the board of directors and the chief
appraiser and other employees of the appraisal district;
(6) the prohibitions against ex parte communications
applicable to appraisal review board members;
(7) the Uniform Standards of Professional Appraisal
Practice;
(8) the duty of the appraisal district to substantiate
the district's determination of the value of property;
(9) the requirements regarding the equal and uniform
appraisal of property;
(10) the right of a property owner to protest the
appraisal of the property as provided by Chapter 41; and
(11) a detailed explanation of each of the actions
described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
41.42, and 41.43 so that members are fully aware of each of the
grounds on which a property appraisal can be appealed.
SECTION 2.04. Chapter 5, Tax Code, is amended by adding
Section 5.043 to read as follows:
Sec. 5.043. TRAINING OF ARBITRATORS. (a) This section
applies only to persons who have agreed to serve as arbitrators
under Chapter 41A.
(b) The comptroller shall:
(1) approve curricula and provide an arbitration
manual and other materials for use in training and educating
arbitrators;
(2) make all materials for use in training and
educating arbitrators freely available online; and
(3) establish and supervise a training program on
property tax law for the training and education of arbitrators.
(c) The training program must:
(1) emphasize the requirements regarding the equal and
uniform appraisal of property; and
(2) be at least four hours in length.
(d) The training program may be provided online. The
comptroller by rule may prescribe the manner by which the
comptroller may verify that a person taking the training program
online has taken and completed the program.
(e) The comptroller may contract with service providers to
assist with the duties imposed under Subsection (b), but the
training program may not be provided by an appraisal district, the
chief appraiser or another employee of an appraisal district, a
member of the board of directors of an appraisal district, a member
of an appraisal review board, or a taxing unit. The comptroller may
assess a fee to recover a portion of the costs incurred for the
training program, but the fee may not exceed $50 for each person
trained.
(f) The comptroller shall prepare an arbitration manual for
use in the training program. The manual shall be updated regularly
and may be revised on request, in writing, to the comptroller. The
revised language must be approved by the unanimous agreement of a
committee selected by the comptroller and representing, equally,
taxpayers and chief appraisers. The person requesting the revision
must pay the costs of mediation if the comptroller determines that
mediation is required.
SECTION 2.05. Section 5.07, Tax Code, is amended by adding
Subsections (f), (g), (h), and (i) to read as follows:
(f) In conjunction with prescribing a uniform record system
to be used by all appraisal districts as required by Subsection (c),
the comptroller shall prescribe tax rate calculation forms to be
used by the designated officer or employee of each:
(1) taxing unit other than a school district to
calculate and submit the no-new-revenue tax rate and the rollback
tax rate for the unit as required by Chapter 26; and
(2) school district to calculate and submit the
no-new-revenue tax rate, the rollback tax rate, and the rate to
maintain the same amount of state and local revenue per weighted
student that the district received in the school year beginning in
the preceding tax year as required by Chapter 26.
(g) The forms described by Subsection (f) must be in an
electronic format and:
(1) have blanks that can be filled in electronically;
(2) be capable of being certified by the designated
officer or employee after completion as accurately calculating the
applicable tax rates and using values that are the same as the
values shown in the taxing unit's certified appraisal roll; and
(3) be capable of being submitted electronically to
the chief appraiser of each appraisal district in which the taxing
unit is located.
(h) For purposes of Subsections (f) and (g), the comptroller
shall use the forms published on the comptroller's Internet website
as of January 1, 2017, as modified as necessary to comply with the
requirements of those subsections. The forms may be updated at the
discretion of the comptroller to reflect any statutory change in
the values used to calculate a tax rate or to reflect formatting or
other nonsubstantive changes.
(i) The comptroller may revise the forms to reflect
statutory changes other than those described by Subsection (h) or
on receipt of a request in writing. A revision under this
subsection must be approved by the agreement of a majority of the
members of a committee selected by the comptroller who are present
at a committee meeting at which a quorum is present. The members of
the committee must represent, equally, taxpayers and either taxing
units or persons designated by taxing units. In the case of a
revision for which the comptroller receives a request in writing,
the person requesting the revision shall pay the costs of mediation
if the comptroller determines that mediation is required.
SECTION 2.06. Section 5.091, Tax Code, is amended to read as
follows:
Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
comptroller shall prepare a list that includes the total tax rate
imposed by each taxing unit in this state, as [other than a school
district, if the tax rate is] reported to the comptroller by each
appraisal district, for the year [preceding the year] in which the
list is prepared. The comptroller shall:
(1) prescribe the manner in which and deadline by
which appraisal districts are required to submit the tax rates to
the comptroller; and
(2) list the tax rates alphabetically according to:
(A) the county or counties in which each taxing
unit is located; and
(B) the name of each taxing unit [in descending
order].
(b) Not later than January 1 [December 31] of the following
[each] year, the comptroller shall publish on the comptroller's
Internet website the list required by Subsection (a).
SECTION 2.07. Section 5.102(a), Tax Code, is amended to
read as follows:
(a) At least once every two years, the comptroller shall
review the governance of each appraisal district, taxpayer
assistance provided, and the operating and appraisal standards,
procedures, and methodology used by each appraisal district, to
determine compliance with generally accepted standards,
procedures, and methodology. After consultation with the property
tax administration advisory board [committee created under Section
403.302, Government Code], the comptroller by rule may establish
procedures and standards for conducting and scoring the review.
SECTION 2.08. Chapter 5, Tax Code, is amended by adding
Section 5.104 to read as follows:
Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The
comptroller shall prepare:
(1) an appraisal review board survey form that allows
an individual described by Subsection (b) to submit comments and
suggestions to the comptroller regarding an appraisal review board;
and
(2) instructions for completing and submitting the
form.
(b) The following individuals may complete and submit a
survey form under this section:
(1) a property owner who files a motion under Section
25.25 to correct the appraisal roll or a protest under Chapter 41;
(2) the designated agent of the property owner; or
(3) a designated representative of the appraisal
district in which the motion or protest is filed who attends the
hearing on the motion or protest.
(c) The survey form must allow an individual to submit
comments and suggestions regarding:
(1) the matters listed in Section 5.103(b); and
(2) any other matter related to the fairness and
efficiency of the appraisal review board.
(d) An appraisal district must provide the survey form and
the instructions for completing and submitting the form to each
property owner or designated agent of the owner:
(1) at or before each hearing conducted under Section
25.25 or Chapter 41 by the appraisal review board established for
the appraisal district or by a panel of the board; and
(2) with each order under Section 25.25 or 41.47
determining a motion or protest, as applicable, delivered by the
board or by a panel of the board.
(e) An individual who elects to submit the survey form must
submit the form to the comptroller as provided by this section. An
appraisal district may not accept a survey form submitted under
this section. An individual may submit only one survey form for
each motion or protest.
(f) The comptroller shall allow an individual to submit a
survey form to the comptroller in the following manner:
(1) in person;
(2) by mail;
(3) by electronic mail; or
(4) through a web page on the comptroller's Internet
website that allows the individual to complete and submit the form.
(g) An appraisal district may not require a property owner
or the designated agent of the owner to complete a survey form at
the appraisal office in order to be permitted to submit the form to
the comptroller.
(h) A property owner or the designated agent of the owner
who elects to submit a survey form provided to the owner or agent
under Subsection (d)(1) or (2) must submit the form not later than
the earlier of the 45th day after the date:
(1) the form is sent to the owner or agent under
Subsection (d)(2); or
(2) the matter that is the subject of the protest is
finally resolved if the protest is settled or otherwise resolved in
a manner that does not require the issuance of an order described by
Subsection (d)(2).
(i) A designated representative of an appraisal district
who elects to submit a survey form following a hearing conducted
under Section 25.25 or Chapter 41 must submit the form not later
than the 45th day after the date the form is sent to the property
owner or designated agent of the owner under Subsection (d)(2)
following that hearing.
(j) The comptroller shall issue an annual report that
summarizes the information included in the survey forms submitted
during the preceding year. The report may not disclose the identity
of an individual who submitted a survey form.
(k) The comptroller may adopt rules necessary to implement
this section.
SECTION 2.09. Section 6.41, Tax Code, is amended by
amending Subsections (b) and (d-9) and adding Subsections (b-1),
(b-2), and (d-10) to read as follows:
(b) Except as provided by Subsection (b-1) or (b-2), an
appraisal review [The] board consists of three members.
(b-1) An appraisal [However, the] district board of
directors by resolution of a majority of the board's [its] members
may increase the size of the district's appraisal review board to
the number of members the board of directors considers appropriate.
(b-2) An appraisal district board of directors for a
district established in a county with a population of one million or
more by resolution of a majority of the board's members shall
increase the size of the district's appraisal review board to the
number of members the board of directors considers appropriate to
manage the duties of the appraisal review board, including the
duties of each special panel established under Section 6.425.
(d-9) In selecting individuals who are to serve as members
of the appraisal review board, the local administrative district
judge shall select an adequate number of qualified individuals to
permit the chairman of the appraisal review board to fill the
positions on each special panel established under Section 6.425.
(d-10) Upon selection of the individuals who are to serve as
members of the appraisal review board, the local administrative
district judge shall enter an appropriate order designating such
members and setting each member's respective term of office, as
provided elsewhere in this section.
SECTION 2.10. Sections 6.412(a) and (d), Tax Code, are
amended to read as follows:
(a) An individual is ineligible to serve on an appraisal
review board if the individual:
(1) is related within the second degree by
consanguinity or affinity, as determined under Chapter 573,
Government Code, to an individual who is engaged in the business of
appraising property for compensation for use in proceedings under
this title or of representing property owners for compensation in
proceedings under this title in the appraisal district for which
the appraisal review board is established;
(2) owns property on which delinquent taxes have been
owed to a taxing unit for more than 60 days after the date the
individual knew or should have known of the delinquency unless:
(A) the delinquent taxes and any penalties and
interest are being paid under an installment payment agreement
under Section 33.02; or
(B) a suit to collect the delinquent taxes is
deferred or abated under Section 33.06 or 33.065; or
(3) is related within the third degree by
consanguinity or within the second degree by affinity, as
determined under Chapter 573, Government Code, to a member of:
(A) the appraisal district's board of directors;
or
(B) the appraisal review board.
(d) A person is ineligible to serve on the appraisal review
board of an appraisal district established for a county described
by Section 6.41(d-1) [having a population of more than 100,000] if
the person:
(1) is a former member of the board of directors,
former officer, or former employee of the appraisal district;
(2) served as a member of the governing body or officer
of a taxing unit for which the appraisal district appraises
property, until the fourth anniversary of the date the person
ceased to be a member or officer; [or]
(3) appeared before the appraisal review board for
compensation during the two-year period preceding the date the
person is appointed; or
(4) served for all or part of three previous terms as a
board member or auxiliary board member on the appraisal review
board.
SECTION 2.11. Section 6.414(d), Tax Code, is amended to
read as follows:
(d) An auxiliary board member may hear taxpayer protests
before the appraisal review board. An auxiliary board member may
not hear taxpayer protests before a special panel established under
Section 6.425 unless the member is eligible to be appointed to the
special panel. If one or more auxiliary board members sit on a
panel established under Section 6.425 or 41.45 to conduct a protest
hearing, the number of regular appraisal review board members
required by that section to constitute the panel is reduced by the
number of auxiliary board members sitting. An auxiliary board
member sitting on a panel is considered a regular board member for
all purposes related to the conduct of the hearing.
SECTION 2.12. Section 6.42, Tax Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) A majority of the appraisal review board constitutes a
quorum. The local administrative district judge under Subchapter
D, Chapter 74, Government Code, in the county in which [board of
directors of] the appraisal district is established [by resolution]
shall select a chairman and a secretary from among the members of
the appraisal review board. The judge [board of directors of the
appraisal district] is encouraged to select as chairman [of the
appraisal review board] a member of the appraisal review board, if
any, who has a background in law and property appraisal.
(d) The concurrence of a majority of the members of the
appraisal review board or a panel of the board present at a meeting
of the board or panel is sufficient for a recommendation,
determination, decision, or other action by the board or panel, and
the concurrence of more than a majority of the members of the board
or panel may not be required.
SECTION 2.13. Subchapter C, Chapter 6, Tax Code, is amended
by adding Section 6.425 to read as follows:
Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
CERTAIN DISTRICTS. (a) This section applies only to the appraisal
review board for an appraisal district described by Section
6.41(b-2).
(b) The appraisal review board shall establish special
panels to conduct protest hearings under Chapter 41 relating to
property that:
(1) has an appraised value of $50 million or more as
determined by the appraisal district; and
(2) is included in one of the following
classifications:
(A) commercial real and personal property;
(B) real and personal property of utilities;
(C) industrial and manufacturing real and
personal property; and
(D) multifamily residential real property.
(c) Each special panel described by this section consists of
three members of the appraisal review board appointed by the
chairman of the board.
(d) To be eligible to be appointed to a special panel
described by this section, a member of the appraisal review board
must:
(1) hold a juris doctor or equivalent degree;
(2) hold a master of business administration degree;
(3) be licensed as a certified public accountant under
Chapter 901, Occupations Code;
(4) be accredited by the American Society of
Appraisers as an accredited senior appraiser;
(5) possess an MAI professional designation from the
Appraisal Institute;
(6) possess a Certified Assessment Evaluator (CAE)
professional designation from the International Association of
Assessing Officers;
(7) have at least 20 years of experience in property
tax appraisal or consulting; or
(8) be licensed as a real estate broker or sales agent
under Chapter 1101, Occupations Code.
(e) Notwithstanding Subsection (d), the chairman of the
appraisal review board may appoint to a special panel described by
this section a member of the appraisal review board who does not
meet the qualifications prescribed by that subsection if:
(1) the number of persons appointed to the board by the
local administrative district judge who meet those qualifications
is not sufficient to fill the positions on each special panel; and
(2) the board member being appointed to the panel
holds a bachelor's degree in any field.
(f) In addition to conducting protest hearings relating to
property described by Subsection (b) of this section, a special
panel may conduct protest hearings under Chapter 41 relating to
property not described by Subsection (b) of this section as
assigned by the chairman of the appraisal review board.
SECTION 2.14. Effective January 1, 2019, Section 25.19, Tax
Code, is amended by adding Subsections (b-3) and (b-4) to read as
follows:
(b-3) This subsection applies only to an appraisal district
described by Section 6.41(b-2). In addition to the information
required by Subsection (b), the chief appraiser shall state in a
notice of appraised value of property described by Section 6.425(b)
that the property owner has the right to have a protest relating to
the property heard by a special panel of the appraisal review board.
(b-4) Subsection (b)(5) applies only to a notice of
appraised value required to be delivered by the chief appraiser of
an appraisal district established in a county with a population of
less than 120,000. This subsection expires January 1, 2020.
SECTION 2.15. (a) This section takes effect only if Article
3 of this Act does not take effect.
(b) Effective January 1, 2020, Sections 25.19(b) and (i),
Tax Code, are amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(5) [if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for the preceding year;
[(6)] in italic typeface, the following
statement: "The Texas Legislature does not set the amount of your
local taxes. Your property tax burden is decided by your locally
elected officials, and all inquiries concerning your taxes should
be directed to those officials";
(6) [(7)] a detailed explanation of the time and
procedure for protesting the value;
(7) [(8)] the date and place the appraisal review
board will begin hearing protests; and
(8) [(9)] a brief explanation that the governing body
of each taxing unit decides whether or not taxes on the property
will increase and the appraisal district only determines the value
of the property.
(i) Delivery with a notice required by Subsection (a) or (g)
of a copy of the pamphlet published by the comptroller under Section
5.06 or a copy of the notice published by the chief appraiser under
Section 41.70 is sufficient to comply with the requirement that the
notice include the information specified by Subsection (b)(6)
[(b)(7)] or (g)(3), as applicable.
SECTION 2.16. Section 25.25(c), Tax Code, is amended to
read as follows:
(c) The appraisal review board, on motion of the chief
appraiser or of a property owner, may direct by written order
changes in the appraisal roll for any of the five preceding years to
correct:
(1) clerical errors that affect a property owner's
liability for a tax imposed in that tax year;
(2) multiple appraisals of a property in that tax
year;
(3) the inclusion of property that does not exist in
the form or at the location described in the appraisal roll; [or]
(4) an error in which property is shown as owned by a
person who did not own the property on January 1 of that tax year; or
(5) an error in the square footage of a property
described in the appraisal roll and any error in the appraised value
of the property that resulted from that error.
SECTION 2.17. Section 26.012(9), Tax Code, is redesignated
as Section 26.012(18), Tax Code, and amended to read as follows:
(18) "No-new-revenue [(9) "Effective] maintenance
and operations rate" means a rate expressed in dollars per $100 of
taxable value and calculated according to the following formula:
NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE AND OPERATIONS
RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
NEW PROPERTY VALUE)
SECTION 2.18. The heading to Section 26.04, Tax Code, is
amended to read as follows:
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
NO-NEW-REVENUE [EFFECTIVE] AND ROLLBACK TAX RATES.
SECTION 2.19. Section 26.04, Tax Code, is amended by
amending Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and
(j) and adding Subsections (d-1), (d-2), (e-2), (e-3), and (e-4) to
read as follows:
(b) The assessor shall submit the appraisal roll for the
unit showing the total appraised, assessed, and taxable values of
all property and the total taxable value of new property to the
governing body of the unit by August 1 or as soon thereafter as
practicable. By August 1 or as soon thereafter as practicable, the
taxing unit's collector shall certify [an estimate of] the
anticipated collection rate, as defined by Subsection (h), for the
current year to the governing body. If the collector certified an
anticipated collection rate in the preceding year and the actual
collection rate in that year exceeded the anticipated rate, the
collector shall also certify the amount of debt taxes collected in
excess of the anticipated amount in the preceding year.
(c) After the assessor for the unit submits the appraisal
roll for the unit to the governing body of the unit as required by
Subsection (b), an [An] officer or employee designated by the
governing body shall calculate the no-new-revenue [effective] tax
rate and the rollback tax rate for the unit, where:
(1) "No-new-revenue [Effective] tax rate" means a rate
expressed in dollars per $100 of taxable value calculated according
to the following formula:
NO-NEW-REVENUE [EFFECTIVE] TAX RATE = (LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE -
NEW PROPERTY VALUE)
; and
(2) "Rollback tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE
AND OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
(d) The no-new-revenue [effective] tax rate for a county is
the sum of the no-new-revenue [effective] tax rates calculated for
each type of tax the county levies and the rollback tax rate for a
county is the sum of the rollback tax rates calculated for each type
of tax the county levies.
(d-1) The designated officer or employee shall use the tax
rate calculation forms prescribed by the comptroller under Section
5.07 in calculating the no-new-revenue tax rate and the rollback
tax rate.
(d-2) The designated officer or employee may not submit the
no-new-revenue tax rate and the rollback tax rate to the governing
body of the taxing unit and the unit may not adopt a tax rate until
the designated officer or employee certifies on the tax rate
calculation forms that the designated officer or employee has
accurately calculated the tax rates and has used values that are the
same as the values shown in the unit's certified appraisal roll in
performing the calculations.
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall
deliver by mail to each property owner in the unit or publish in a
newspaper and may post prominently on the home page of the unit's
Internet website, if applicable, in the form prescribed by the
comptroller:
(1) the no-new-revenue [effective] tax rate, the
rollback tax rate, and an explanation of how they were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that
will be paid to service the unit's debts in the next year from
property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the unit by another political
subdivision and, if the unit is created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, payments on
debts that the unit anticipates to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the unit's anticipated collection
rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) a statement that the adoption of a tax rate equal
to the no-new-revenue [effective] tax rate would result in an
increase or decrease, as applicable, in the amount of taxes imposed
by the unit as compared to last year's levy, and the amount of the
increase or decrease;
(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
(A) the name of the unit discontinuing the
department, function, or activity;
(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
(C) the name of the unit that operates a distinct
department, function, or activity in all or a majority of the
territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
(7) in the year following the year in which a taxing
unit raised its rollback tax rate as required by Subsection (j), a
schedule that includes the following elements:
(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback tax rate as required by
Subsection (j) for the 12 months preceding the month in which the
calculations required by this chapter are made; and
(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B).
(e-1) The tax rate certification requirements imposed by
Subsection (d-2) and the notice requirements imposed by Subsections
(e)(1)-(6) do not apply to a school district.
(e-2) By August 7 or as soon thereafter as practicable, the
chief appraiser of each appraisal district shall deliver by regular
mail or e-mail to each owner of property located in the appraisal
district a notice that the estimated amount of taxes to be imposed
on the owner's property by each taxing unit in which the property is
located may be found in the property tax database maintained by the
appraisal district under Section 26.17. The notice must include:
(1) the following statement:
"PROPOSED (tax year) PROPERTY TAX BILL INFORMATION
"Information concerning the property taxes that may be
imposed on your property by local taxing units, the dates and
locations of any public hearings on the tax rates of the taxing
units, and the dates and locations of meetings of the governing
bodies of the taxing units to vote on the tax rates, together with
other important property tax information, may be found at the
website listed below:
"(address of the Internet website at which the information
may be found).";
(2) a statement that the property owner may request
from the county assessor-collector contact information for the
assessor for each taxing unit in which the property is located, who
must provide the information described by this subsection to the
owner on request; and
(3) the address and telephone number of the county
assessor-collector.
(e-3) The heading of the statement described by Subsection
(e-2)(1) must be in bold, capital letters in typeset larger than
that used in the other provisions of the notice.
(e-4) The comptroller may adopt rules regarding the format
and delivery of the notice required by Subsection (e-2).
(f) If as a result of consolidation of taxing units a taxing
unit includes territory that was in two or more taxing units in the
preceding year, the amount of taxes imposed in each in the preceding
year is combined for purposes of calculating the no-new-revenue
[effective] and rollback tax rates under this section.
(g) A person who owns taxable property is entitled to an
injunction prohibiting the taxing unit in which the property is
taxable from adopting a tax rate if the assessor or designated
officer or employee of the unit, the chief appraiser of the
applicable appraisal district, or the taxing unit, as applicable,
has not complied with the computation, [or] publication, or posting
requirements of this section or Section 26.17 or 26.18 [and the
failure to comply was not in good faith].
(i) This subsection applies to a taxing unit that has agreed
by written contract to transfer a distinct department, function, or
activity to another taxing unit and discontinues operating that
distinct department, function, or activity if the operation of that
department, function, or activity in all or a majority of the
territory of the taxing unit is continued by another existing
taxing unit or by a new taxing unit. The rollback tax rate of a
taxing unit to which this subsection applies in the first tax year
in which a budget is adopted that does not allocate revenue to the
discontinued department, function, or activity is calculated as
otherwise provided by this section, except that last year's levy
used to calculate the no-new-revenue [effective] maintenance and
operations rate of the unit is reduced by the amount of maintenance
and operations tax revenue spent by the taxing unit to operate the
department, function, or activity for the 12 months preceding the
month in which the calculations required by this chapter are made
and in which the unit operated the discontinued department,
function, or activity. If the unit did not operate that department,
function, or activity for the full 12 months preceding the month in
which the calculations required by this chapter are made, the unit
shall reduce last year's levy used for calculating the
no-new-revenue [effective] maintenance and operations rate of the
unit by the amount of the revenue spent in the last full fiscal year
in which the unit operated the discontinued department, function,
or activity.
(j) This subsection applies to a taxing unit that had agreed
by written contract to accept the transfer of a distinct
department, function, or activity from another taxing unit and
operates a distinct department, function, or activity if the
operation of a substantially similar department, function, or
activity in all or a majority of the territory of the taxing unit
has been discontinued by another taxing unit, including a dissolved
taxing unit. The rollback tax rate of a taxing unit to which this
subsection applies in the first tax year after the other taxing unit
discontinued the substantially similar department, function, or
activity in which a budget is adopted that allocates revenue to the
department, function, or activity is calculated as otherwise
provided by this section, except that last year's levy used to
calculate the no-new-revenue [effective] maintenance and
operations rate of the unit is increased by the amount of
maintenance and operations tax revenue spent by the taxing unit
that discontinued operating the substantially similar department,
function, or activity to operate that department, function, or
activity for the 12 months preceding the month in which the
calculations required by this chapter are made and in which the unit
operated the discontinued department, function, or activity. If
the unit did not operate the discontinued department, function, or
activity for the full 12 months preceding the month in which the
calculations required by this chapter are made, the unit may
increase last year's levy used to calculate the no-new-revenue
[effective] maintenance and operations rate by an amount not to
exceed the amount of property tax revenue spent by the
discontinuing unit to operate the discontinued department,
function, or activity in the last full fiscal year in which the
discontinuing unit operated the department, function, or activity.
SECTION 2.20. Sections 26.041(a), (b), (c), (e), (g), and
(h), Tax Code, are amended to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the no-new-revenue [effective] tax
rate and rollback tax rate for the unit are calculated according to
the following formulas:
NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] - SALES TAX GAIN RATE
and
ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE]
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
RATE - SALES TAX GAIN RATE
where "sales tax gain rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the following
year as calculated under Subsection (d) [of this section] by the
current total value.
(b) Except as provided by Subsections (a) and (c) [of this
section], in a year in which a taxing unit imposes an additional
sales and use tax, the rollback tax rate for the unit is calculated
according to the following formula, regardless of whether the unit
levied a property tax in the preceding year:
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.08) / ([TOTAL] CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE -
SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means the
amount spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that will
be generated by the additional sales and use tax in the current year
as calculated under Subsection (d) [of this section] by the current
total value.
(c) In a year in which a taxing unit that has been imposing
an additional sales and use tax ceases to impose an additional sales
and use tax, the no-new-revenue [effective] tax rate and rollback
tax rate for the unit are calculated according to the following
formulas:
NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] + SALES TAX LOSS RATE
and
ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
OPERATIONS EXPENSE x 1.08) / ([TOTAL] CURRENT TOTAL
VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
where "sales tax loss rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the amount of sales
and use tax revenue generated in the last four quarters for which
the information is available by the current total value and "last
year's maintenance and operations expense" means the amount spent
for maintenance and operations from property tax and additional
sales and use tax revenues in the preceding year.
(e) If a city that imposes an additional sales and use tax
receives payments under the terms of a contract executed before
January 1, 1986, in which the city agrees not to annex certain
property or a certain area and the owners or lessees of the property
or of property in the area agree to pay at least annually to the city
an amount determined by reference to all or a percentage of the
property tax rate of the city and all or a part of the value of the
property subject to the agreement or included in the area subject to
the agreement, the governing body, by order adopted by a majority
vote of the governing body, may direct the designated officer or
employee to add to the no-new-revenue [effective] and rollback tax
rates the amount that, when applied to the total taxable value
submitted to the governing body, would produce an amount of taxes
equal to the difference between the total amount of payments for the
tax year under contracts described by this subsection under the
rollback tax rate calculated under this section and the total
amount of payments for the tax year that would have been obligated
to the city if the city had not adopted an additional sales and use
tax.
(g) If the rate of the additional sales and use tax is
increased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) [of this
section], of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the increase and the second projection must not take into
account the increase. The designated officer or employee shall
then subtract the amount of the result of the second projection from
the amount of the result of the first projection to determine the
revenue generated as a result of the increase in the additional
sales and use tax. In the first year in which an additional sales
and use tax is increased, the no-new-revenue [effective] tax rate
for the unit is the no-new-revenue [effective] tax rate before the
increase minus a number the numerator of which is the revenue
generated as a result of the increase in the additional sales and
use tax, as determined under this subsection, and the denominator
of which is the current total value minus the new property value.
(h) If the rate of the additional sales and use tax is
decreased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) [of this
section], of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the decrease and the second projection must not take into
account the decrease. The designated officer or employee shall
then subtract the amount of the result of the first projection from
the amount of the result of the second projection to determine the
revenue lost as a result of the decrease in the additional sales and
use tax. In the first year in which an additional sales and use tax
is decreased, the no-new-revenue [effective] tax rate for the unit
is the no-new-revenue [effective] tax rate before the decrease plus
a number the numerator of which is the revenue lost as a result of
the decrease in the additional sales and use tax, as determined
under this subsection, and the denominator of which is the current
total value minus the new property value.
SECTION 2.21. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK AND NO-NEW-REVENUE [EFFECTIVE] TAX
RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 2.22. Sections 26.043(a) and (b), Tax Code, are
amended to read as follows:
(a) In the tax year in which a city has set an election on
the question of whether to impose a local sales and use tax under
Subchapter H, Chapter 453, Transportation Code, the officer or
employee designated to make the calculations provided by Section
26.04 may not make those calculations until the outcome of the
election is determined. If the election is determined in favor of
the imposition of the tax, the representative shall subtract from
the city's rollback and no-new-revenue [effective] tax rates the
amount that, if applied to the city's current total value, would
impose an amount equal to the amount of property taxes budgeted in
the current tax year to pay for expenses related to mass transit
services.
(b) In a tax year to which this section applies, a reference
in this chapter to the city's no-new-revenue [effective] or
rollback tax rate refers to that rate as adjusted under this
section.
SECTION 2.23. The heading to Section 26.044, Tax Code, is
amended to read as follows:
Sec. 26.044. NO-NEW-REVENUE [EFFECTIVE] TAX RATE TO PAY FOR
STATE CRIMINAL JUSTICE MANDATE.
SECTION 2.24. Sections 26.044(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) The first time that a county adopts a tax rate after
September 1, 1991, in which the state criminal justice mandate
applies to the county, the no-new-revenue [effective] maintenance
and operation rate for the county is increased by the rate
calculated according to the following formula:
(State Criminal Justice Mandate) / (Current Total
Value - New Property Value)
(b) In the second and subsequent years that a county adopts
a tax rate, if the amount spent by the county for the state criminal
justice mandate increased over the previous year, the
no-new-revenue [effective] maintenance and operation rate for the
county is increased by the rate calculated according to the
following formula:
(This Year's State Criminal Justice Mandate - Previous
Year's State Criminal Justice Mandate) / (Current
Total Value - New Property Value)
(c) The county shall include a notice of the increase in the
no-new-revenue [effective] maintenance and operation rate provided
by this section, including a description and amount of the state
criminal justice mandate, in the information published under
Section 26.04(e) and Section 26.06(b) [of this code].
SECTION 2.25. Sections 26.0441(a), (b), and (c), Tax Code,
are amended to read as follows:
(a) In the first tax year in which a taxing unit adopts a tax
rate after January 1, 2000, and in which the enhanced minimum
eligibility standards for indigent health care established under
Section 61.006, Health and Safety Code, apply to the taxing unit,
the no-new-revenue [effective] maintenance and operations rate for
the taxing unit is increased by the rate computed according to the
following formula:
Amount of Increase = Enhanced Indigent Health Care
Expenditures / (Current Total Value - New Property
Value)
(b) In each subsequent tax year, if the taxing unit's
enhanced indigent health care expenses exceed the amount of those
expenses for the preceding year, the no-new-revenue [effective]
maintenance and operations rate for the taxing unit is increased by
the rate computed according to the following formula:
Amount of Increase = (Current Tax Year's Enhanced
Indigent Health Care Expenditures - Preceding Tax
Year's Indigent Health Care Expenditures) / (Current
Total Value - New Property Value)
(c) The taxing unit shall include a notice of the increase
in its no-new-revenue [effective] maintenance and operations rate
provided by this section, including a brief description and the
amount of the enhanced indigent health care expenditures, in the
information published under Section 26.04(e) and, if applicable,
Section 26.06(b).
SECTION 2.26. Section 26.05, Tax Code, is amended by
amending Subsections (b), (c), (d), (e), and (g) and adding
Subsections (d-1) and (d-2) to read as follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. For a taxing unit other than a school district, the vote on
the ordinance, resolution, or order setting a tax rate that exceeds
the no-new-revenue [effective] tax rate must be a record vote, and
at least 60 percent of the members of the governing body must vote
in favor of the ordinance, resolution, or order. For a school
district, the vote on the ordinance, resolution, or order setting a
tax rate that exceeds the sum of the no-new-revenue [effective]
maintenance and operations tax rate of the district as determined
under Section 26.08(i) and the district's current debt rate must be
a record vote, and at least 60 percent of the members of the
governing body must vote in favor of the ordinance, resolution, or
order. A motion to adopt an ordinance, resolution, or order setting
a tax rate that exceeds the no-new-revenue [effective] tax rate
must be made in the following form: "I move that the property tax
rate be increased by the adoption of a tax rate of (specify tax
rate), which is effectively a (insert percentage by which the
proposed tax rate exceeds the no-new-revenue [effective] tax rate)
percent increase in the tax rate." If the ordinance, resolution, or
order sets a tax rate that, if applied to the total taxable value,
will impose an amount of taxes to fund maintenance and operation
expenditures of the taxing unit that exceeds the amount of taxes
imposed for that purpose in the preceding year, the taxing unit
must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE."; and
(B) if the tax rate exceeds the no-new-revenue
[effective] maintenance and operations rate, the following
statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website
operated by the unit:
(A) the following statement: "(Insert name of
unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE
AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the no-new-revenue
[effective] maintenance and operations rate, the following
statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
APPROXIMATELY $(Insert amount)."
(c) If the governing body of a taxing unit does not adopt a
tax rate before the date required by Subsection (a), the tax rate
for the taxing unit for that tax year is the lower of the
no-new-revenue [effective] tax rate calculated for that tax year or
the tax rate adopted by the taxing unit for the preceding tax year.
A tax rate established by this subsection is treated as an adopted
tax rate. Before the fifth day after the establishment of a tax
rate by this subsection, the governing body of the taxing unit must
ratify the applicable tax rate in the manner required by Subsection
(b).
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that exceeds the lower of the
rollback tax rate or the no-new-revenue [effective] tax rate
calculated as provided by this chapter until the governing body has
held two public hearings on the proposed tax rate and has otherwise
complied with Section 26.06 and Section 26.065. The governing body
of a taxing unit shall reduce a tax rate set by law or by vote of the
electorate to the lower of the rollback tax rate or the
no-new-revenue [effective] tax rate and may not adopt a higher rate
unless it first complies with Section 26.06.
(d-1) The governing body of a taxing unit may not hold a
public hearing on a proposed tax rate or a public meeting to adopt a
tax rate until the 14th day after the date the officer or employee
designated by the governing body of the unit to calculate the
no-new-revenue tax rate and the rollback tax rate for the unit
complies with Section 26.17.
(d-2) Notwithstanding Subsection (a), the governing body of
a taxing unit other than a school district may not adopt a tax rate
until:
(1) the chief appraiser of each appraisal district in
which the taxing unit participates has:
(A) delivered the notice required by Section
26.04(e-2); and
(B) incorporated the tax rate calculation forms
submitted to the appraisal district under Section 26.17(d)(2) by
the designated officer or employee of the taxing unit into the
property tax database maintained by the chief appraiser and made
them available to the public;
(2) the designated officer or employee of the taxing
unit has entered in the property tax database maintained by the
chief appraiser the information described by Section 26.17(b) for
the current tax year; and
(3) the taxing unit has posted the information
described by Section 26.18 on the Internet website used by the
taxing unit for that purpose.
(e) A person who owns taxable property is entitled to an
injunction restraining the collection of taxes by a taxing unit in
which the property is taxable if the taxing unit has not complied
with the requirements of this section or Section 26.04 [and the
failure to comply was not in good faith]. An action to enjoin the
collection of taxes must be filed not later than the 15th day after
the date the taxing unit adopts a tax rate. A property owner is not
required to pay the taxes imposed by a taxing unit on the owner's
property while an action filed by the property owner to enjoin the
collection of taxes imposed by the taxing unit on the owner's
property is pending. If the property owner pays the taxes and
subsequently prevails in the action, the property owner is entitled
to a refund of the taxes paid, together with reasonable attorney's
fees and court costs. The property owner is not required to apply
to the collector for the taxing unit to receive the refund [prior to
the date a taxing unit delivers substantially all of its tax bills].
(g) Notwithstanding Subsection (a), the governing body of a
school district that elects to adopt a tax rate before the adoption
of a budget for the fiscal year that begins in the current tax year
may adopt a tax rate for the current tax year before receipt of the
certified appraisal roll for the school district if the chief
appraiser of the appraisal district in which the school district
participates has certified to the assessor for the school district
an estimate of the taxable value of property in the school district
as provided by Section 26.01(e). If a school district adopts a tax
rate under this subsection, the no-new-revenue [effective] tax rate
and the rollback tax rate of the district shall be calculated based
on the certified estimate of taxable value.
SECTION 2.27. Section 26.052, Tax Code, is amended by
amending Subsection (e) and adding Subsection (f) to read as
follows:
(e) Public notice provided under Subsection (c) must
specify:
(1) the tax rate that the governing body proposes to
adopt;
(2) the date, time, and location of the meeting of the
governing body of the taxing unit at which the governing body will
consider adopting the proposed tax rate; and
(3) if the proposed tax rate for the taxing unit
exceeds the unit's no-new-revenue [effective] tax rate calculated
as provided by Section 26.04, a statement substantially identical
to the following: "The proposed tax rate would increase total taxes
in (name of taxing unit) by (percentage by which the proposed tax
rate exceeds the no-new-revenue [effective] tax rate)."
(f) A taxing unit to which this section applies that elects
to provide public notice of its proposed tax rate under Subsection
(c) may also provide public notice of its proposed tax rate by
posting notice of the proposed tax rate including the information
prescribed by Subsection (e) prominently on the home page of the
Internet website maintained by the taxing unit, if applicable.
SECTION 2.28. Sections 26.06(b), (c), (d), and (e), Tax
Code, are amended to read as follows:
(b) The notice of a public hearing may not be smaller than
one-quarter page of a standard-size or a tabloid-size newspaper,
and the headline on the notice must be in 24-point or larger type.
The notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"The (name of the taxing unit) will hold two public hearings
on a proposal to increase total tax revenues from properties on the
tax roll in the preceding tax year by (percentage by which proposed
tax rate exceeds lower of rollback tax rate or no-new-revenue
[effective] tax rate calculated under this chapter) percent. Your
individual taxes may increase at a greater or lesser rate, or even
decrease, depending on the tax rate that is adopted and on the
change in the taxable value of your property in relation to the
change in taxable value of all other property [and the tax rate that
is adopted]. The change in the taxable value of your property in
relation to the change in the taxable value of all other property
determines the distribution of the tax burden among all property
owners.
"The first public hearing will be held on (date and time) at
(meeting place).
"The second public hearing will be held on (date and time) at
(meeting place).
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)
"The average taxable value of a residence homestead in (name
of taxing unit) last year was $____ (average taxable value of a
residence homestead in the taxing unit for the preceding tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older). Based on
last year's tax rate of $____ (preceding year's adopted tax rate)
per $100 of taxable value, the amount of taxes imposed last year on
the average home was $____ (tax on average taxable value of a
residence homestead in the taxing unit for the preceding tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older).
"The average taxable value of a residence homestead in (name
of taxing unit) this year is $____ (average taxable value of a
residence homestead in the taxing unit for the current tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older). If the
governing body adopts the no-new-revenue [effective] tax rate for
this year of $____ (no-new-revenue [effective] tax rate) per $100
of taxable value, the amount of taxes imposed this year on the
average home would be $____ (tax on average taxable value of a
residence homestead in the taxing unit for the current tax year,
disregarding residence homestead exemptions available only to
disabled persons or persons 65 years of age or older).
"If the governing body adopts the proposed tax rate of $____
(proposed tax rate) per $100 of taxable value, the amount of taxes
imposed this year on the average home would be $____ (tax on the
average taxable value of a residence in the taxing unit for the
current year disregarding residence homestead exemptions available
only to disabled persons or persons 65 years of age or older).
"Members of the public are encouraged to attend the hearings
and express their views."
(c) The notice of a public hearing under this section may be
delivered by mail to each property owner in the unit, or may be
published in a newspaper. If the notice is published in a
newspaper, it may not be in the part of the paper in which legal
notices and classified advertisements appear. If the taxing unit
operates an Internet website, the notice must also be posted
prominently on the home page of the website from the date the notice
is first published until the second public hearing is concluded.
(d) At the public hearings the governing body shall announce
the date, time, and place of the meeting at which it will vote on the
proposed tax rate. After each hearing the governing body shall give
notice of the meeting at which it will vote on the proposed tax rate
and the notice shall be in the same form as prescribed by
Subsections (b) and (c), except that it must state the following:
"NOTICE OF TAX REVENUE INCREASE
"The (name of the taxing unit) conducted public hearings on
(date of first hearing) and (date of second hearing) on a proposal
to increase the total tax revenues of the (name of the taxing unit)
from properties on the tax roll in the preceding year by (percentage
by which proposed tax rate exceeds lower of rollback tax rate or
no-new-revenue [effective] tax rate calculated under this chapter)
percent.
"The total tax revenue proposed to be raised last year at last
year's tax rate of (insert tax rate for the preceding year) for each
$100 of taxable value was (insert total amount of taxes imposed in
the preceding year).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, excluding tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by the difference between current
total value and new property value).
"The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, including tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by current total value).
"The (governing body of the taxing unit) is scheduled to vote
on the tax rate that will result in that tax increase at a public
meeting to be held on (date of meeting) at (location of meeting,
including mailing address) at (time of meeting).
"The (governing body of the taxing unit) proposes to use the
increase in total tax revenue for the purpose of (description of
purpose of increase)."
(e) The meeting to vote on the tax increase may not be
earlier than the third day or later than the 14th day after the date
of the second public hearing. The meeting must be held inside the
boundaries of the taxing unit in a publicly owned building or, if a
suitable publicly owned building is not available, in a suitable
building to which the public normally has access. If the governing
body does not adopt a tax rate that exceeds the lower of the
rollback tax rate or the no-new-revenue [effective] tax rate by the
14th day, it must give a new notice under Subsection (d) before it
may adopt a rate that exceeds the lower of the rollback tax rate or
the no-new-revenue [effective] tax rate.
SECTION 2.29. Section 26.065(b), Tax Code, is amended to
read as follows:
(b) If the taxing unit owns, operates, or controls an
Internet website, the unit shall post notice of the public hearing
prominently on the home page of the website continuously for at
least seven days immediately before the public hearing on the
proposed tax rate increase and at least seven days immediately
before the date of the vote proposing the increase in the tax rate.
SECTION 2.30. Sections 26.08(g), (n), and (p), Tax Code,
are amended to read as follows:
(g) In a school district that received distributions from an
equalization tax imposed under former Chapter 18, Education Code,
the no-new-revenue [effective] rate of that tax as of the date of
the county unit system's abolition is added to the district's
rollback tax rate.
(n) For purposes of this section, the rollback tax rate of a
school district whose maintenance and operations tax rate for the
2005 tax year was $1.50 or less per $100 of taxable value is:
(1) for the 2006 tax year, the sum of the rate that is
equal to 88.67 percent of the maintenance and operations tax rate
adopted by the district for the 2005 tax year, the rate of $0.04 per
$100 of taxable value, and the district's current debt rate; and
(2) for the 2007 and subsequent tax years, the lesser
of the following:
(A) the sum of the following:
(i) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $1.50;
(ii) the rate of $0.04 per $100 of taxable
value;
(iii) the rate that is equal to the sum of
the differences for the 2006 and each subsequent tax year between
the adopted tax rate of the district for that year if the rate was
approved at an election under this section and the rollback tax rate
of the district for that year; and
(iv) the district's current debt rate; or
(B) the sum of the following:
(i) the no-new-revenue [effective]
maintenance and operations tax rate of the district as computed
under Subsection (i) [or (k), as applicable];
(ii) the rate per $100 of taxable value that
is equal to the product of the state compression percentage, as
determined under Section 42.2516, Education Code, for the current
year and $0.06; and
(iii) the district's current debt rate.
(p) Notwithstanding Subsections (i), (n), and (o), if for
the preceding tax year a school district adopted a maintenance and
operations tax rate that was less than the district's
no-new-revenue [effective] maintenance and operations tax rate for
that preceding tax year, the rollback tax rate of the district for
the current tax year is calculated as if the district adopted a
maintenance and operations tax rate for the preceding tax year that
was equal to the district's no-new-revenue [effective] maintenance
and operations tax rate for that preceding tax year.
SECTION 2.31. Section 26.08(i), Tax Code, as effective
September 1, 2017, is amended to read as follows:
(i) For purposes of this section, the no-new-revenue
[effective] maintenance and operations tax rate of a school
district is the tax rate that, applied to the current total value
for the district, would impose taxes in an amount that, when added
to state funds that would be distributed to the district under
Chapter 42, Education Code, for the school year beginning in the
current tax year using that tax rate, would provide the same amount
of state funds distributed under Chapter 42, Education Code, and
maintenance and operations taxes of the district per student in
weighted average daily attendance for that school year that would
have been available to the district in the preceding year if the
funding elements for Chapters 41 and 42, Education Code, for the
current year had been in effect for the preceding year.
SECTION 2.32. Section 26.16, Tax Code, is amended by
amending Subsections (a) and (d) and adding Subsection (a-1) to
read as follows:
(a) The county assessor-collector for each county that
maintains an Internet website shall post on the website of the
county the following information for the most recent five tax years
beginning with the 2012 tax year for each taxing unit all or part of
the territory of which is located in the county:
(1) the adopted tax rate;
(2) the maintenance and operations rate;
(3) the debt rate;
(4) the no-new-revenue [effective] tax rate;
(5) the no-new-revenue [effective] maintenance and
operations rate; and
(6) the rollback tax rate.
(a-1) For purposes of Subsection (a), a reference to the
no-new-revenue tax rate or the no-new-revenue maintenance and
operations rate includes the equivalent effective tax rate or
effective maintenance and operations rate for a preceding year.
This subsection expires January 1, 2024.
(d) The county assessor-collector shall post immediately
below the table prescribed by Subsection (c) the following
statement:
"The county is providing this table of property tax rate
information as a service to the residents of the county. Each
individual taxing unit is responsible for calculating the property
tax rates listed in this table pertaining to that taxing unit and
providing that information to the county.
"The adopted tax rate is the tax rate adopted by the governing
body of a taxing unit.
"The maintenance and operations rate is the component of the
adopted tax rate of a taxing unit that will impose the amount of
taxes needed to fund maintenance and operation expenditures of the
unit for the following year.
"The debt rate is the component of the adopted tax rate of a
taxing unit that will impose the amount of taxes needed to fund the
unit's debt service for the following year.
"The no-new-revenue [effective] tax rate is the tax rate that
would generate the same amount of revenue in the current tax year as
was generated by a taxing unit's adopted tax rate in the preceding
tax year from property that is taxable in both the current tax year
and the preceding tax year.
"The no-new-revenue [effective] maintenance and operations
rate is the tax rate that would generate the same amount of revenue
for maintenance and operations in the current tax year as was
generated by a taxing unit's maintenance and operations rate in the
preceding tax year from property that is taxable in both the current
tax year and the preceding tax year.
"The rollback tax rate is the highest tax rate a taxing unit
may adopt before requiring voter approval at an election. In the
case of a taxing unit other than a school district, the voters by
petition may require that a rollback election be held if the unit
adopts a tax rate in excess of the unit's rollback tax rate. In the
case of a school district, an election will automatically be held if
the district wishes to adopt a tax rate in excess of the district's
rollback tax rate."
SECTION 2.33. Chapter 26, Tax Code, is amended by adding
Sections 26.17 and 26.18 to read as follows:
Sec. 26.17. DATABASE OF PROPERTY-TAX-RELATED INFORMATION.
(a) The chief appraiser of each appraisal district shall create and
maintain a property tax database that:
(1) is identified by the name of the county in which
the appraisal district is established instead of the name of the
appraisal district;
(2) contains information that is provided by
designated officers or employees of the taxing units that are
located in the appraisal district in the manner required by rules
adopted by the comptroller;
(3) is continuously updated as preliminary and revised
data become available to and are provided by the designated
officers or employees of taxing units;
(4) is accessible to the public; and
(5) is searchable by property address and owner.
(b) The database must include, with respect to each property
listed on the appraisal roll for the appraisal district:
(1) the property's identification number;
(2) the property's market value;
(3) the property's taxable value;
(4) the name of each taxing unit in which the property
is located;
(5) for each taxing unit other than a school district
in which the property is located:
(A) the no-new-revenue tax rate; and
(B) the rollback tax rate;
(6) for each school district in which the property is
located:
(A) the rate to maintain the same amount of state
and local revenue per weighted student that the district received
in the school year beginning in the preceding tax year; and
(B) the rollback tax rate;
(7) the tax rate proposed by the governing body of each
taxing unit in which the property is located;
(8) for each taxing unit other than a school district
in which the property is located, the taxes that would be imposed on
the property if the unit adopted a tax rate equal to:
(A) the no-new-revenue tax rate; and
(B) the proposed tax rate;
(9) for each school district in which the property is
located, the taxes that would be imposed on the property if the
district adopted a tax rate equal to:
(A) the rate to maintain the same amount of state
and local revenue per weighted student that the district received
in the school year beginning in the preceding tax year; and
(B) the proposed tax rate;
(10) for each taxing unit other than a school district
in which the property is located, the difference between the amount
calculated under Subdivision (8)(A) and the amount calculated under
Subdivision (8)(B);
(11) for each school district in which the property is
located, the difference between the amount calculated under
Subdivision (9)(A) and the amount calculated under Subdivision
(9)(B);
(12) the date and location of each public hearing, if
applicable, on the proposed tax rate to be held by the governing
body of each taxing unit in which the property is located; and
(13) the date and location of the public meeting at
which the tax rate will be adopted to be held by the governing body
of each taxing unit in which the property is located.
(c) The database must provide a link to the Internet website
used by each taxing unit in which the property is located to post
the information described by Section 26.18.
(d) The officer or employee designated by the governing body
of each taxing unit to calculate the no-new-revenue tax rate and the
rollback tax rate for the unit must electronically:
(1) enter in the database the information described by
Subsection (b) as the information becomes available; and
(2) submit to the appraisal district the tax rate
calculation forms prepared under Section 26.04(d-1) at the same
time the designated officer or employee submits the tax rates to the
governing body of the unit under Section 26.04(e).
(e) The chief appraiser shall deliver by e-mail to the
designated officer or employee confirmation of receipt of the tax
rate calculation forms submitted under Subsection (d)(2). The
chief appraiser shall incorporate the forms into the database and
make them available to the public not later than the third day after
the date the chief appraiser receives them.
Sec. 26.18. POSTING OF TAX RATE AND BUDGET INFORMATION BY
TAXING UNIT ON WEBSITE. Each taxing unit shall maintain an Internet
website or have access to a generally accessible Internet website
that may be used for the purposes of this section. Each taxing unit
shall post or cause to be posted on the Internet website the
following information in a format prescribed by the comptroller:
(1) the name of each member of the governing body of
the taxing unit;
(2) the mailing address, e-mail address, and telephone
number of the taxing unit;
(3) the official contact information for each member
of the governing body of the taxing unit, if that information is
different from the information described by Subdivision (2);
(4) the taxing unit's budget for the preceding two
years;
(5) the taxing unit's proposed or adopted budget for
the current year;
(6) the change in the amount of the taxing unit's
budget from the preceding year to the current year, by dollar amount
and percentage;
(7) in the case of a taxing unit other than a school
district, the amount of property tax revenue budgeted for
maintenance and operations for:
(A) the preceding two years; and
(B) the current year;
(8) in the case of a taxing unit other than a school
district, the amount of property tax revenue budgeted for debt
service for:
(A) the preceding two years; and
(B) the current year;
(9) the tax rate for maintenance and operations
adopted by the taxing unit for the preceding two years;
(10) in the case of a taxing unit other than a school
district, the tax rate for debt service adopted by the unit for the
preceding two years;
(11) in the case of a school district, the interest and
sinking fund tax rate adopted by the district for the preceding two
years;
(12) the tax rate for maintenance and operations
proposed by the taxing unit for the current year;
(13) in the case of a taxing unit other than a school
district, the tax rate for debt service proposed by the unit for the
current year;
(14) in the case of a school district, the interest and
sinking fund tax rate proposed by the district for the current year;
and
(15) the most recent financial audit of the taxing
unit.
SECTION 2.34. Section 41.03(a), Tax Code, is amended to
read as follows:
(a) A taxing unit is entitled to challenge before the
appraisal review board:
(1) [the level of appraisals of any category of
property in the district or in any territory in the district, but
not the appraised value of a single taxpayer's property;
[(2)] an exclusion of property from the appraisal
records;
(2) [(3)] a grant in whole or in part of a partial
exemption;
(3) [(4)] a determination that land qualifies for
appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
(4) [(5)] failure to identify the taxing unit as one
in which a particular property is taxable.
SECTION 2.35. Section 41.44(d), Tax Code, is amended to
read as follows:
(d) A notice of protest is sufficient if it identifies the
protesting property owner, including a person claiming an ownership
interest in the property even if that person is not listed on the
appraisal records as an owner of the property, identifies the
property that is the subject of the protest, and indicates apparent
dissatisfaction with some determination of the appraisal office.
The notice need not be on an official form, but the comptroller
shall prescribe a form that provides for more detail about the
nature of the protest. The form must permit a property owner to
include each property in the appraisal district that is the subject
of a protest. The form must permit a property owner to request that
the protest be heard by a special panel established under Section
6.425 if the protest will be determined by an appraisal review board
to which that section applies and the property is described by
Section 6.425(b). The comptroller, each appraisal office, and each
appraisal review board shall make the forms readily available and
deliver one to a property owner on request.
SECTION 2.36. Section 41.45, Tax Code, is amended by
amending Subsection (d) and adding Subsections (d-1), (d-2), and
(d-3) to read as follows:
(d) This subsection does not apply to a special panel
established under Section 6.425. An appraisal review board
consisting of more than three members may sit in panels of not fewer
than three members to conduct protest hearings. [However, the
determination of a protest heard by a panel must be made by the
board.] If the recommendation of a panel is not accepted by the
board, the board may refer the matter for rehearing to a panel
composed of members who did not hear the original protest [hearing]
or, if there are not at least three members who did not hear the
original protest, the board may determine the protest. [Before
determining a protest or conducting a rehearing before a new panel
or the board, the board shall deliver notice of the hearing or
meeting to determine the protest in accordance with the provisions
of this subchapter.]
(d-1) An appraisal review board to which Section 6.425
applies shall sit in special panels established under that section
to conduct protest hearings. A special panel may conduct a protest
hearing relating to property only if the property is described by
Section 6.425(b) and the property owner has requested that a
special panel conduct the hearing or if the protest is assigned to
the special panel under Section 6.425(f). If the recommendation of
a special panel is not accepted by the board, the board may refer
the matter for rehearing to another special panel composed of
members who did not hear the original protest or, if there are not
at least three other special panel members who did not hear the
original protest, the board may determine the protest.
(d-2) The determination of a protest heard by a panel under
Subsection (d) or (d-1) must be made by the board.
(d-3) The board must deliver notice of a hearing or meeting
to determine a protest heard by a panel, or to rehear a protest,
under Subsection (d) or (d-1) in accordance with the provisions of
this subchapter.
SECTION 2.37. Section 41.46(a), Tax Code, is amended to
read as follows:
(a) The appraisal review board before which a protest
hearing is scheduled shall deliver written notice to the property
owner initiating a protest of the date, time, [and] place, and
subject matter of [fixed for] the hearing on the protest and of the
property owner's entitlement to a postponement of the hearing as
provided by Section 41.45 unless the property owner waives in
writing notice of the hearing. The board shall deliver the notice
not later than the 15th day before the date of the hearing.
SECTION 2.38. Section 41.461, Tax Code, is amended to read
as follows:
Sec. 41.461. NOTICE OF CERTAIN MATTERS BEFORE HEARING;
DELIVERY OF REQUESTED INFORMATION. (a) At least 14 days before the
first scheduled [a] hearing on a protest, the chief appraiser
shall:
(1) deliver a copy of the pamphlet prepared by the
comptroller under Section 5.06 [5.06(a)] to the property owner
initiating the protest if the owner is representing himself, or to
an agent representing the owner if requested by the agent;
(2) inform the property owner that the owner or the
agent of the owner is entitled on request to [may inspect and may
obtain] a copy of the data, schedules, formulas, and all other
information the chief appraiser will [plans to] introduce at the
hearing to establish any matter at issue; and
(3) deliver a copy of the hearing procedures
established by the appraisal review board under Section 41.66 to
the property owner.
(b) The chief appraiser may not charge a property owner or
the designated agent of the owner for copies provided to the [an]
owner or designated agent under this section, regardless of the
manner in which the copies are prepared or delivered [may not exceed
the charge for copies of public information as provided under
Subchapter F, Chapter 552, Government Code, except:
[(1) the total charge for copies provided in
connection with a protest of the appraisal of residential property
may not exceed $15 for each residence; and
[(2) the total charge for copies provided in
connection with a protest of the appraisal of a single unit of
property subject to appraisal, other than residential property, may
not exceed $25].
(c) A chief appraiser must deliver information requested by
a property owner or the agent of the owner under Subsection (a)(2):
(1) by regular first-class mail;
(2) in an electronic format as provided by an
agreement under Section 1.085; or
(3) subject to Subsection (d), by referring the
property owner or the agent of the owner to the exact Internet
location or uniform resource locator (URL) address on an Internet
website maintained by the appraisal district on which the requested
information is identifiable and readily available.
(d) If a chief appraiser provides a property owner or the
agent of the owner the Internet location or address of information
under Subsection (c)(3), the notice must contain a statement in a
conspicuous font that clearly indicates that the property owner or
the agent of the owner may on request receive the information by
regular first-class mail. On request by a property owner or the
agent of the owner, the chief appraiser must provide the
information by regular first-class mail.
SECTION 2.39. Section 41.47, Tax Code, is amended by adding
Subsections (c-2) and (f) and amending Subsections (d) and (e) to
read as follows:
(c-2) The board may not determine the appraised value of the
property that is the subject of a protest to be an amount greater
than the appraised value of the property as shown in the appraisal
records submitted to the board by the chief appraiser under Section
25.22 or 25.23.
(d) The board shall deliver by certified mail:
(1) a notice of issuance of the order and a copy of the
order to the property owner and the chief appraiser; and
(2) a copy of the appraisal review board survey form
prepared under Section 5.104 and instructions for completing and
submitting the form to the property owner.
(e) The notice of the issuance of the order must contain a
prominently printed statement in upper-case bold lettering
informing the property owner in clear and concise language of the
property owner's right to appeal the order of the board [board's
decision] to district court. The statement must describe the
deadline prescribed by Section 42.06(a) [of this code] for filing a
written notice of appeal[,] and the deadline prescribed by Section
42.21(a) [of this code] for filing the petition for review with the
district court.
(f) The appraisal review board shall take the actions
required by Subsections (a) and (d) not later than the 15th day
after the date the hearing on the protest is concluded.
SECTION 2.40. Section 41.66, Tax Code, is amended by
amending Subsections (h), (i), (j), and (k) and adding Subsections
(j-1), (k-1), and (p) to read as follows:
(h) The appraisal review board shall postpone a hearing on a
protest if the property owner or the designated agent of the owner
requests additional time to prepare for the hearing and establishes
to the board that the chief appraiser failed to comply with Section
41.461. The board is not required to postpone a hearing more than
one time under this subsection.
(i) A hearing on a protest filed by a property owner or the
designated agent of the owner [who is not represented by an agent
designated under Section 1.111] shall be set for a time and date
certain. If the hearing is not commenced within two hours of the
time set for the hearing, the appraisal review board shall postpone
the hearing on the request of the property owner or the designated
agent of the owner.
(j) On the request of a property owner or the [a] designated
agent of the owner, an appraisal review board shall schedule
hearings on protests concerning up to 20 designated properties to
be held consecutively on the same day. The designated properties
must be identified in the same notice of protest, and the notice
must contain in boldfaced type the statement "request for same-day
protest hearings." A property owner or the designated agent of the
owner may [not] file more than one request under this subsection
with the appraisal review board in the same tax year. The appraisal
review board may schedule hearings on protests concerning more than
20 properties filed by the same property owner or the designated
agent of the owner and may use different panels to conduct the
hearings based on the board's customary scheduling. The appraisal
review board may follow the practices customarily used by the board
in the scheduling of hearings under this subsection.
(j-1) An appraisal review board may schedule the hearings on
all protests filed by a property owner or the designated agent of
the owner to be held consecutively. The notice of the hearings must
state the date and time that the first hearing will begin, state the
date the last hearing will end, and list the order in which the
hearings will be held. The order of the hearings listed in the
notice may not be changed without the agreement of the property
owner or the designated agent of the owner, the chief appraiser, and
the appraisal review board. The board may not reschedule a hearing
for which notice is given under this subsection to a date earlier
than the seventh day after the date the last hearing was scheduled
to end unless agreed to by the property owner or the designated
agent of the owner, the chief appraiser, and the appraisal review
board. Unless agreed to by the parties, the board must provide
written notice of the date and time of the rescheduled hearing to
the property owner or the designated agent of the owner not later
than the seventh day before the date of the hearing.
(k) This subsection does not apply to a special panel
established under Section 6.425. If an appraisal review board sits
in panels to conduct protest hearings, protests shall be randomly
assigned to panels, except that the board may consider the type of
property subject to the protest or the ground of the protest for the
purpose of using the expertise of a particular panel in hearing
protests regarding particular types of property or based on
particular grounds. If a protest is scheduled to be heard by a
particular panel, the protest may not be reassigned to another
panel without the consent of the property owner or designated
agent. If the appraisal review board has cause to reassign a
protest to another panel, a property owner or designated agent may
agree to reassignment of the protest or may request that the hearing
on the protest be postponed. The board shall postpone the hearing
on that request. A change of members of a panel because of a
conflict of interest, illness, or inability to continue
participating in hearings for the remainder of the day does not
constitute reassignment of a protest to another panel.
(k-1) On the request of a property owner, an appraisal
review board to which Section 6.425 applies shall assign a protest
relating to property described by Section 6.425(b) to a special
panel. In addition, the chairman of the appraisal review board may
assign a protest relating to property not described by Section
6.425(b) to a special panel as authorized by Section 6.425(f).
Protests assigned to special panels shall be randomly assigned to
those panels. If a protest is scheduled to be heard by a particular
special panel, the protest may not be reassigned to another special
panel without the consent of the property owner or designated
agent. If the board has cause to reassign a protest to another
special panel, a property owner or designated agent may agree to
reassignment of the protest or may request that the hearing on the
protest be postponed. The board shall postpone the hearing on that
request. A change of members of a special panel because of a
conflict of interest, illness, or inability to continue
participating in hearings for the remainder of the day does not
constitute reassignment of a protest to another special panel.
(p) At the end of a hearing on a protest, the appraisal
review board shall provide the property owner or the designated
agent of the owner one or more documents indicating that the members
of the board hearing the protest signed the affidavit required by
Subsection (g).
SECTION 2.41. Section 41.67(d), Tax Code, is amended to
read as follows:
(d) Information that was previously requested under Section
41.461 by the protesting party that was not delivered [made
available] to the protesting party at least 14 days before the first
scheduled [or postponed] hearing may not be used or offered in any
form as evidence in the hearing, including as a document or through
argument or testimony.
SECTION 2.42. Section 41.71, Tax Code, is amended to read as
follows:
Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An
appraisal review board by rule shall provide for hearings on
protests [in the evening or] on a Saturday or after 5 p.m. on a
weekday [Sunday].
(b) The board may not schedule:
(1) the first hearing on a protest held on a weekday
evening to begin after 7 p.m.; or
(2) a hearing on a protest on a Sunday.
SECTION 2.43. Section 41A.06(b), Tax Code, as effective
September 1, 2017, is amended to read as follows:
(b) To initially qualify to serve as an arbitrator under
this chapter, a person must:
(1) meet the following requirements, as applicable:
(A) be licensed as an attorney in this state; or
(B) have:
(i) completed at least 30 hours of training
in arbitration and alternative dispute resolution procedures from a
university, college, or legal or real estate trade association; and
(ii) been licensed or certified
continuously during the five years preceding the date the person
agrees to serve as an arbitrator as:
(a) a real estate broker or sales
agent under Chapter 1101, Occupations Code;
(b) a real estate appraiser under
Chapter 1103, Occupations Code; or
(c) a certified public accountant
under Chapter 901, Occupations Code; [and]
(2) complete the course for training and education of
appraisal review board members established under Section 5.041 and
be issued a certificate indicating course completion;
(3) complete the training program on property tax law
for the training and education of arbitrators established under
Section 5.043; and
(4) agree to conduct an arbitration for a fee that is
not more than:
(A) $400, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $500,000 or less,
as determined by the order;
(B) $450, if the property qualifies as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than
$500,000, as determined by the order;
(C) $450, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is $1 million or
less, as determined by the order;
(D) $750, if the property does not qualify as the
owner's residence homestead under Section 11.13 and the appraised
or market value, as applicable, of the property is more than $1
million but not more than $2 million, as determined by the order;
(E) $1,000, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $2 million but not more than $3 million, as determined by the
order; or
(F) $1,500, if the property does not qualify as
the owner's residence homestead under Section 11.13 and the
appraised or market value, as applicable, of the property is more
than $3 million but not more than $5 million, as determined by the
order.
SECTION 2.44. Section 41A.061(b), Tax Code, is amended to
read as follows:
(b) To renew the person's agreement to serve as an
arbitrator, the person must:
(1) file a renewal application with the comptroller at
the time and in the manner prescribed by the comptroller;
(2) continue to meet the requirements provided by
Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; and
(3) during the preceding two years have completed at
least eight hours of continuing education in arbitration and
alternative dispute resolution procedures offered by a university,
college, real estate trade association, or legal association.
SECTION 2.45. Section 41A.09(b), Tax Code, is amended to
read as follows:
(b) An award under this section:
(1) must include a determination of the appraised or
market value, as applicable, of the property that is the subject of
the appeal;
(2) may include any remedy or relief a court may order
under Chapter 42 in an appeal relating to the appraised or market
value of property;
(3) shall specify the arbitrator's fee, which may not
exceed the amount provided by Section 41A.06(b)(4) [41A.06(b)(2)];
(4) is final and may not be appealed except as
permitted under Section 171.088, Civil Practice and Remedies Code,
for an award subject to that section; and
(5) may be enforced in the manner provided by
Subchapter D, Chapter 171, Civil Practice and Remedies Code.
SECTION 2.46. Section 45.105(e), Education Code, is amended
to read as follows:
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B, Chapter
130, in a county with a population of more than two million may
dedicate a specific percentage of the local tax levy to the use of
the junior college district for facilities and equipment or for the
maintenance and operating expenses of the junior college district.
To be effective, the dedication must be made by the governing body
on or before the date on which the governing body adopts its tax
rate for a year. The amount of local tax funds derived from the
percentage of the local tax levy dedicated to a junior college
district from a tax levy may not exceed the amount that would be
levied by five percent of the no-new-revenue [effective] tax rate
for the tax year calculated as provided by Section 26.04, Tax Code,
on all property taxable by the school district. All real property
purchased with these funds is the property of the school district,
but is subject to the exclusive control of the governing body of the
junior college district for as long as the junior college district
uses the property for educational purposes.
SECTION 2.47. Section 403.302(o), Government Code, is
amended to read as follows:
(o) The comptroller shall adopt rules governing the conduct
of the study after consultation with the comptroller's property tax
administration advisory board [Comptroller's Property Value Study
Advisory Committee].
SECTION 2.48. Section 102.007(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the governing
body by name voting on the adoption of the budget;
(3) the municipal property tax rates for the preceding
fiscal year, and each municipal property tax rate that has been
adopted or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of municipal debt obligations.
SECTION 2.49. Section 111.008(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 2.50. Section 111.039(d), Local Government Code, is
amended to read as follows:
(d) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 2.51. Section 111.068(c), Local Government Code, is
amended to read as follows:
(c) An adopted budget must contain a cover page that
includes:
(1) one of the following statements in 18-point or
larger type that accurately describes the adopted budget:
(A) "This budget will raise more revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of increase), which is a (insert percentage increase)
percent increase from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll).";
(B) "This budget will raise less revenue from
property taxes than last year's budget by an amount of (insert total
dollar amount of decrease), which is a (insert percentage decrease)
percent decrease from last year's budget. The property tax revenue
to be raised from new property added to the tax roll this year is
(insert amount computed by multiplying the proposed tax rate by the
value of new property added to the roll)."; or
(C) "This budget will raise the same amount of
revenue from property taxes as last year's budget. The property
tax revenue to be raised from new property added to the tax roll
this year is (insert amount computed by multiplying the proposed
tax rate by the value of new property added to the roll).";
(2) the record vote of each member of the
commissioners court by name voting on the adoption of the budget;
(3) the county property tax rates for the preceding
fiscal year, and each county property tax rate that has been adopted
or calculated for the current fiscal year, including:
(A) the property tax rate;
(B) the no-new-revenue [effective] tax rate;
(C) the no-new-revenue [effective] maintenance
and operations tax rate;
(D) the rollback tax rate; and
(E) the debt rate; and
(4) the total amount of county debt obligations.
SECTION 2.52. Sections 140.010(a), (d), (e), and (f), Local
Government Code, are amended to read as follows:
(a) In this section, "no-new-revenue [effective] tax rate"
and "rollback tax rate" mean the no-new-revenue [effective] tax
rate and rollback tax rate of a county or municipality, as
applicable, as calculated under Chapter 26, Tax Code.
(d) A county or municipality that proposes a property tax
rate that does not exceed the lower of the no-new-revenue
[effective] tax rate or the rollback tax rate shall provide the
following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $______ per $100 valuation has been proposed by the
governing body of (insert name of county or municipality).
PROPOSED TAX RATE $______ per $100
PRECEDING YEAR'S TAX RATE $______ per $100
NO-NEW-REVENUE [EFFECTIVE] TAX RATE $______ per $100
"The no-new-revenue [effective] tax rate is the total tax rate
needed to raise the same amount of property tax revenue for (insert
name of county or municipality) from the same properties in both the
(insert preceding tax year) tax year and the (insert current tax
year) tax year.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)"
(e) A county or municipality that proposes a property tax
rate that exceeds the lower of the no-new-revenue [effective] tax
rate or the rollback tax rate shall provide the following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the lower of the no-new-revenue
[effective] or rollback tax rate, and state law requires that two
public hearings be held by the governing body before adopting the
proposed tax rate. The governing body of (insert name of county or
municipality) proposes to use revenue attributable to the tax rate
increase for the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
NO-NEW-REVENUE [EFFECTIVE] TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
"The no-new-revenue [effective] tax rate is the total tax rate
needed to raise the same amount of property tax revenue for (insert
name of county or municipality) from the same properties in both the
(insert preceding tax year) tax year and the (insert current tax
year) tax year.
"The rollback tax rate is the highest tax rate that (insert name of
county or municipality) may adopt before the voters are entitled to
petition for an election to limit the rate that may be approved to
the rollback tax rate.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)
"You are urged to attend and express your views at the following
public hearings on the proposed tax rate:
First Hearing: (insert date and time) at (insert location of
meeting).
Second Hearing: (insert date and time) at (insert location
of meeting)."
(f) A county or municipality shall:
(1) provide the notice required by Subsection (d) or
(e), as applicable, not later than the later of September 1 or the
30th day after the first date that the taxing unit has received each
applicable certified appraisal roll by:
(A) publishing the notice in a newspaper having
general circulation in:
(i) the county, in the case of notice
published by a county; or
(ii) the county in which the municipality
is located or primarily located, in the case of notice published by
a municipality; or
(B) mailing the notice to each property owner in:
(i) the county, in the case of notice
provided by a county; or
(ii) the municipality, in the case of
notice provided by a municipality; and
(2) post the notice prominently on the home page of the
Internet website of the county or municipality, if applicable,
beginning not later than the later of September 1 or the 30th day
after the first date that the taxing unit has received each
applicable certified appraisal roll and continuing until the county
or municipality adopts a tax rate.
SECTION 2.53. Section 8876.152(b), Special District Local
Laws Code, is amended to read as follows:
(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
78th Legislature, Regular Session, 2003, applies] to the district.
SECTION 2.54. Section 49.236(a), Water Code, as added by
Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(a) Before the board adopts an ad valorem tax rate for the
district for debt service, operation and maintenance purposes, or
contract purposes, the board shall give notice of each meeting of
the board at which the adoption of a tax rate will be considered.
The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase at a
greater or lesser rate, or even decrease, depending on the tax rate
that is adopted and on the change in the taxable value of your
property in relation to the change in taxable value of all other
property [and the tax rate that is adopted]. The change in the
taxable value of your property in relation to the change in the
taxable value of all other property determines the distribution of
the tax burden among all property owners.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of
age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in
the district in each of those years, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, if the proposed tax
rate is adopted; [and]
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(G) if the proposed combined debt service,
operation and maintenance, and contract tax rate would authorize
the qualified voters of the district by petition to require a
rollback election to be held in the district, a description of the
purpose of the proposed tax increase; and
(3) contain a statement in substantially the following
form:
"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
"If taxes on the average residence homestead increase by more
than eight percent, the qualified voters of the district by
petition may require that an election be held to determine whether
to reduce the operation and maintenance tax rate to the rollback tax
rate under Section 49.236(d), Water Code."
SECTION 2.55. The following provisions are repealed:
(1) Sections 403.302(m-1) and (n), Government Code;
(2) Sections 5.103(e) and (f), Tax Code;
(3) Section 6.412(e), Tax Code;
(4) Section 41A.06(c), Tax Code;
(5) Section 49.236, Water Code, as added by Chapter
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2003; and
(6) Section 49.2361, Water Code.
SECTION 2.56. Section 5.041, Tax Code, as amended by this
Act, applies only to an appraisal review board member appointed to
serve a term of office that begins on or after January 1, 2018.
SECTION 2.57. The comptroller shall implement Section
5.043, Tax Code, as added by this Act, as soon as practicable after
January 1, 2018.
SECTION 2.58. (a) The comptroller shall comply with
Sections 5.07(f), (g), (h), and (i), Tax Code, as added by this Act,
as soon as practicable after January 1, 2018.
(b) The comptroller shall comply with Section 5.091, Tax
Code, as amended by this Act, not later than January 1, 2021.
SECTION 2.59. The comptroller shall prepare and make
available the survey form and instructions for completing and
submitting the form required by Section 5.104, Tax Code, as added by
this Act, as soon as practicable after January 1, 2018. An
appraisal district is not required to provide the survey form or
instructions under a requirement of that section until the form and
instructions are prepared and made available by the comptroller.
SECTION 2.60. Section 6.41(d-9), Tax Code, as amended by
this Act, applies only to the appointment of appraisal review board
members to terms beginning on or after January 1, 2019.
SECTION 2.61. Section 6.412, Tax Code, as amended by this
Act, does not affect the eligibility of a person serving on an
appraisal review board immediately before January 1, 2018, to
continue to serve on the board for the term to which the member was
appointed.
SECTION 2.62. Section 6.42(d), Tax Code, as added by this
Act, applies only to a recommendation, determination, decision, or
other action by an appraisal review board or a panel of such a board
on or after January 1, 2018. A recommendation, determination,
decision, or other action by an appraisal review board or a panel of
such a board before January 1, 2018, is governed by the law as it
existed immediately before that date, and that law is continued in
effect for that purpose.
SECTION 2.63. Section 25.25(c), Tax Code, as amended by
this Act, applies only to a motion to correct an appraisal roll
filed on or after January 1, 2018. A motion to correct an appraisal
roll filed before January 1, 2018, is governed by the law in effect
on the date the motion was filed, and the former law is continued in
effect for that purpose.
SECTION 2.64. (a) An appraisal district established in a
county with a population of 120,000 or more and each taxing unit
located wholly or partly in such an appraisal district shall comply
with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18,
Tax Code, as added by this Act, beginning with the 2019 tax year.
(b) An appraisal district established in a county with a
population of less than 120,000 and each taxing unit located wholly
in such an appraisal district shall comply with Sections
26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18, Tax Code, as
added by this Act, beginning with the 2020 tax year.
SECTION 2.65. (a) Except as provided by Subsections (b) and
(c) of this section, the changes in law made by this Act to Chapter
41, Tax Code, apply only to a protest for which the notice of
protest was filed by a property owner or the designated agent of the
owner with the appraisal review board established for an appraisal
district on or after January 1, 2018.
(b) Section 41.03(a), Tax Code, as amended by this Act,
applies only to a challenge under Chapter 41, Tax Code, for which a
challenge petition is filed on or after January 1, 2018. A
challenge under Chapter 41, Tax Code, for which a challenge
petition was filed before January 1, 2018, is governed by the law in
effect on the date the challenge petition was filed, and the former
law is continued in effect for that purpose.
(c) Sections 41.45 and 41.66, Tax Code, as amended by this
Act, apply only to a protest filed under Chapter 41, Tax Code, on or
after January 1, 2019. A protest filed under that chapter before
January 1, 2019, is governed by the law in effect on the date the
protest was filed, and the former law is continued in effect for
that purpose.
SECTION 2.66. The changes in law made by this Act in the
qualifications of persons serving as arbitrators in binding
arbitrations of appeals of appraisal review board orders do not
affect the entitlement of a person serving as an arbitrator
immediately before January 1, 2018, to continue to serve as an
arbitrator and to conduct hearings on arbitrations until the person
is required to renew the person's agreement with the comptroller to
serve as an arbitrator. The changes in law apply only to a person
who initially qualifies to serve as an arbitrator or who renews the
person's agreement with the comptroller to serve as an arbitrator
on or after January 1, 2018. This Act does not prohibit a person who
is serving as an arbitrator on January 1, 2018, from renewing the
person's agreement with the comptroller to serve as an arbitrator
if the person has the qualifications required for an arbitrator
under the Tax Code as amended by this Act.
SECTION 2.67. (a) Except as otherwise provided by this
article, this article takes effect January 1, 2018.
(b) The following provisions take effect September 1, 2018:
(1) Sections 6.41(b) and (d-9), Tax Code, as amended
by this Act;
(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
as added by this Act;
(3) Section 6.414(d), Tax Code, as amended by this
Act;
(4) Section 6.425, Tax Code, as added by this Act;
(5) Section 41.44(d), Tax Code, as amended by this
Act;
(6) Section 41.45(d), Tax Code, as amended by this
Act;
(7) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
as added by this Act;
(8) Section 41.66(k), Tax Code, as amended by this
Act; and
(9) Section 41.66(k-1), Tax Code, as added by this
Act.
(c) The following provisions take effect January 1, 2019:
(1) Sections 26.04(d-1), (d-2), (e-2), (e-3), and
(e-4), Tax Code, as added by this Act;
(2) Sections 26.04(e-1) and (g), Tax Code, as amended
by this Act;
(3) Sections 26.05(d-1) and (d-2), Tax Code, as added
by this Act; and
(4) Section 26.05(e), Tax Code, as amended by this
Act.
ARTICLE 3. LIMITATION ON INCREASES IN APPRAISED VALUE OF
COMMERCIAL OR INDUSTRIAL REAL PROPERTY
SECTION 3.01. Section 1.12(d), Tax Code, is amended to read
as follows:
(d) For purposes of this section, the appraisal ratio of a
homestead to which Section 23.23 applies or of commercial or
industrial real property to which Section 23.231 applies is the
ratio of the property's market value as determined by the appraisal
district or appraisal review board, as applicable, to the market
value of the property according to law. The appraisal ratio is not
calculated according to the appraised value of the property as
limited by Section 23.23 or 23.231.
SECTION 3.02. Subchapter B, Chapter 23, Tax Code, is
amended by adding Section 23.231 to read as follows:
Sec. 23.231. LIMITATION ON APPRAISED VALUE OF COMMERCIAL OR
INDUSTRIAL REAL PROPERTY. (a) In this section, "new improvement"
means an improvement to commercial or industrial real property made
after the most recent appraisal of the property that increases the
market value of the property and the value of which is not included
in the appraised value of the property for the preceding tax
year. The term does not include repairs to or ordinary maintenance
of an existing structure or the grounds or another feature of the
property.
(b) This section does not apply to:
(1) residential property;
(2) a mineral interest; or
(3) property appraised under Subchapter C, D, E, F, G,
or H.
(c) Notwithstanding the requirements of Section 25.18 and
regardless of whether the appraisal office has appraised the
property and determined the market value of the property for the tax
year, an appraisal office may increase the appraised value of a
parcel of commercial or industrial real property for a tax year to
an amount not to exceed the lesser of:
(1) the market value of the property for the most
recent tax year that the market value was determined by the
appraisal office; or
(2) the sum of:
(A) 20 percent of the appraised value of the
property for the preceding tax year;
(B) the appraised value of the property for the
preceding tax year; and
(C) the market value of all new improvements to
the property.
(d) When appraising a parcel of commercial or industrial
real property, the chief appraiser shall:
(1) appraise the property at its market value; and
(2) include in the appraisal records both the market
value of the property and the amount computed under Subsection
(c)(2).
(e) The limitation provided by Subsection (c) takes effect
as to a parcel of commercial or industrial real property on January
1 of the tax year following the first tax year in which the owner
owns the property on January 1 and in which the property qualifies
as commercial or industrial real property under this section.
Except as provided by Subsection (f), the limitation expires on
January 1 of the tax year following the first tax year in which the
owner of the property ceases to own the property or the property
ceases to qualify as commercial or industrial real property.
(f) If property subject to a limitation under this section
is owned by two or more persons, the limitation expires on January 1
of the tax year following the first tax year in which the ownership
of at least a 50 percent interest in the property is sold or
otherwise transferred.
(g) Notwithstanding Subsections (a) and (c) and except as
provided by Subdivision (2) of this subsection, an improvement to
property that would otherwise constitute a new improvement is not
treated as a new improvement if the improvement is a replacement
structure for a structure that was rendered unusable by a casualty
or by wind or water damage. For purposes of appraising the property
under Subsection (c) in the tax year in which the structure would
have constituted a new improvement:
(1) the appraised value the property would have had in
the preceding tax year if the casualty or damage had not occurred is
considered to be the appraised value of the property for that year,
regardless of whether that appraised value exceeds the actual
appraised value of the property for that year as limited by
Subsection (c); and
(2) the replacement structure is considered to be a
new improvement only if:
(A) the square footage of the replacement
structure exceeds that of the replaced structure as that structure
existed before the casualty or damage occurred; or
(B) the exterior of the replacement structure is
of higher quality construction and composition than that of the
replaced structure.
(h) In this subsection, "disaster recovery program" means
the disaster recovery program administered by the General Land
Office that is funded with community development block grant
disaster recovery money authorized by the Consolidated Security,
Disaster Assistance, and Continuing Appropriations Act, 2009 (Pub.
L. No. 110-329), and the Consolidated and Further Continuing
Appropriations Act, 2012 (Pub. L. No. 112-55). Notwithstanding
Subsection (g)(2), and only to the extent necessary to satisfy the
requirements of the disaster recovery program, a replacement
structure described by that subdivision is not considered to be a
new improvement if to satisfy the requirements of the disaster
recovery program it was necessary that:
(1) the square footage of the replacement structure
exceed that of the replaced structure as that structure existed
before the casualty or damage occurred; or
(2) the exterior of the replacement structure be of
higher quality construction and composition than that of the
replaced structure.
SECTION 3.03. (a) Effective January 1, 2018, Sections
25.19(b) and (g), Tax Code, are amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(4-a) a statement of whether the property qualifies
for the limitation on appraised value provided by Section 23.231;
(5) if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for the preceding year;
(6) in italic typeface, the following
statement: "The Texas Legislature does not set the amount of your
local taxes. Your property tax burden is decided by your locally
elected officials, and all inquiries concerning your taxes should
be directed to those officials";
(7) a detailed explanation of the time and procedure
for protesting the value;
(8) the date and place the appraisal review board will
begin hearing protests; and
(9) a brief explanation that the governing body of
each taxing unit decides whether or not taxes on the property will
increase and the appraisal district only determines the value of
the property.
(g) By April 1 or as soon thereafter as practicable if the
property is a single-family residence that qualifies for an
exemption under Section 11.13, or by May 1 or as soon thereafter as
practicable in connection with any other property, the chief
appraiser shall deliver a written notice to the owner of each
property not included in a notice required to be delivered under
Subsection (a), if the property was reappraised in the current tax
year, if the ownership of the property changed during the preceding
year, or if the property owner or the agent of a property owner
authorized under Section 1.111 makes a written request for the
notice. The chief appraiser shall separate real from personal
property and include in the notice for each property:
(1) the appraised value of the property in the
preceding year;
(2) the appraised value of the property for the
current year and the kind of each partial exemption, if any,
approved for the current year;
(2-a) a statement of whether the property qualifies
for the limitation on appraised value provided by Section 23.231;
(3) a detailed explanation of the time and procedure
for protesting the value; and
(4) the date and place the appraisal review board will
begin hearing protests.
(b) Effective January 1, 2020, Sections 25.19(b) and (i),
Tax Code, are amended to read as follows:
(b) The chief appraiser shall separate real from personal
property and include in the notice for each:
(1) a list of the taxing units in which the property is
taxable;
(2) the appraised value of the property in the
preceding year;
(3) the taxable value of the property in the preceding
year for each taxing unit taxing the property;
(4) the appraised value of the property for the
current year, the kind and amount of each exemption and partial
exemption, if any, approved for the property for the current year
and for the preceding year, and, if an exemption or partial
exemption that was approved for the preceding year was canceled or
reduced for the current year, the amount of the exemption or partial
exemption canceled or reduced;
(4-a) a statement of whether the property qualifies
for the limitation on appraised value provided by Section 23.231;
(5) [if the appraised value is greater than it was in
the preceding year, the amount of tax that would be imposed on the
property on the basis of the tax rate for the preceding year;
[(6)] in italic typeface, the following
statement: "The Texas Legislature does not set the amount of your
local taxes. Your property tax burden is decided by your locally
elected officials, and all inquiries concerning your taxes should
be directed to those officials";
(6) [(7)] a detailed explanation of the time and
procedure for protesting the value;
(7) [(8)] the date and place the appraisal review
board will begin hearing protests; and
(8) [(9)] a brief explanation that the governing body
of each taxing unit decides whether or not taxes on the property
will increase and the appraisal district only determines the value
of the property.
(i) Delivery with a notice required by Subsection (a) or (g)
of a copy of the pamphlet published by the comptroller under Section
5.06 or a copy of the notice published by the chief appraiser under
Section 41.70 is sufficient to comply with the requirement that the
notice include the information specified by Subsection (b)(6)
[(b)(7)] or (g)(3), as applicable.
SECTION 3.04. Section 41.41(a), Tax Code, is amended to
read as follows:
(a) A property owner is entitled to protest before the
appraisal review board the following actions:
(1) determination of the appraised value of the
owner's property or, in the case of land appraised as provided by
Subchapter C, D, E, or H, Chapter 23, determination of its appraised
or market value;
(2) unequal appraisal of the owner's property;
(3) inclusion of the owner's property on the appraisal
records;
(4) denial to the property owner in whole or in part of
a partial exemption;
(4-a) determination that the owner's property does not
qualify for the limitation on appraised value provided by Section
23.231;
(5) determination that the owner's land does not
qualify for appraisal as provided by Subchapter C, D, E, or H,
Chapter 23;
(6) identification of the taxing units in which the
owner's property is taxable in the case of the appraisal district's
appraisal roll;
(7) determination that the property owner is the owner
of property;
(8) a determination that a change in use of land
appraised under Subchapter C, D, E, or H, Chapter 23, has occurred;
or
(9) any other action of the chief appraiser, appraisal
district, or appraisal review board that applies to and adversely
affects the property owner.
SECTION 3.05. Section 42.26(d), Tax Code, is amended to
read as follows:
(d) For purposes of this section, the value of the property
subject to the suit and the value of a comparable property or sample
property that is used for comparison must be the market value
determined by the appraisal district when the property is [a
residence homestead] subject to the limitation on appraised value
imposed by Section 23.23 or 23.231.
SECTION 3.06. Sections 403.302(d) and (i), Government Code,
are amended to read as follows:
(d) For the purposes of this section, "taxable value" means
the market value of all taxable property less:
(1) the total dollar amount of any residence homestead
exemptions lawfully granted under Section 11.13(b) or (c), Tax
Code, in the year that is the subject of the study for each school
district;
(2) one-half of the total dollar amount of any
residence homestead exemptions granted under Section 11.13(n), Tax
Code, in the year that is the subject of the study for each school
district;
(3) the total dollar amount of any exemptions granted
before May 31, 1993, within a reinvestment zone under agreements
authorized by Chapter 312, Tax Code;
(4) subject to Subsection (e), the total dollar amount
of any captured appraised value of property that:
(A) is within a reinvestment zone created on or
before May 31, 1999, or is proposed to be included within the
boundaries of a reinvestment zone as the boundaries of the zone and
the proposed portion of tax increment paid into the tax increment
fund by a school district are described in a written notification
provided by the municipality or the board of directors of the zone
to the governing bodies of the other taxing units in the manner
provided by former Section 311.003(e), Tax Code, before May 31,
1999, and within the boundaries of the zone as those boundaries
existed on September 1, 1999, including subsequent improvements to
the property regardless of when made;
(B) generates taxes paid into a tax increment
fund created under Chapter 311, Tax Code, under a reinvestment zone
financing plan approved under Section 311.011(d), Tax Code, on or
before September 1, 1999; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(5) the total dollar amount of any captured appraised
value of property that:
(A) is within a reinvestment zone:
(i) created on or before December 31, 2008,
by a municipality with a population of less than 18,000; and
(ii) the project plan for which includes
the alteration, remodeling, repair, or reconstruction of a
structure that is included on the National Register of Historic
Places and requires that a portion of the tax increment of the zone
be used for the improvement or construction of related facilities
or for affordable housing;
(B) generates school district taxes that are paid
into a tax increment fund created under Chapter 311, Tax Code; and
(C) is eligible for tax increment financing under
Chapter 311, Tax Code;
(6) the total dollar amount of any exemptions granted
under Section 11.251 or 11.253, Tax Code;
(7) the difference between the comptroller's estimate
of the market value and the productivity value of land that
qualifies for appraisal on the basis of its productive capacity,
except that the productivity value estimated by the comptroller may
not exceed the fair market value of the land;
(8) the portion of the appraised value of residence
homesteads of individuals who receive a tax limitation under
Section 11.26, Tax Code, on which school district taxes are not
imposed in the year that is the subject of the study, calculated as
if the residence homesteads were appraised at the full value
required by law;
(9) a portion of the market value of property not
otherwise fully taxable by the district at market value because of:
(A) action required by statute or the
constitution of this state, other than Section 11.311, Tax Code,
that, if the tax rate adopted by the district is applied to it,
produces an amount equal to the difference between the tax that the
district would have imposed on the property if the property were
fully taxable at market value and the tax that the district is
actually authorized to impose on the property, if this subsection
does not otherwise require that portion to be deducted; or
(B) action taken by the district under Subchapter
B or C, Chapter 313, Tax Code, before the expiration of the
subchapter;
(10) the market value of all tangible personal
property, other than manufactured homes, owned by a family or
individual and not held or used for the production of income;
(11) the appraised value of property the collection of
delinquent taxes on which is deferred under Section 33.06, Tax
Code;
(12) the portion of the appraised value of property
the collection of delinquent taxes on which is deferred under
Section 33.065, Tax Code; and
(13) the amount by which the market value of property
[a residence homestead] to which Section 23.23 or 23.231, Tax Code,
applies exceeds the appraised value of that property as calculated
under Section 23.23 or 23.231, Tax Code, as applicable [that
section].
(i) If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is valid, the comptroller,
in determining the taxable value of property in the school district
under Subsection (d), shall for purposes of Subsection (d)(13)
subtract from the market value as determined by the appraisal
district of properties [residence homesteads] to which Section
23.23 or 23.231, Tax Code, applies the amount by which that amount
exceeds the appraised value of those properties as calculated by
the appraisal district under Section 23.23 or 23.231, Tax Code, as
applicable. If the comptroller determines in the study that the
market value of property in a school district as determined by the
appraisal district that appraises property for the school district,
less the total of the amounts and values listed in Subsection (d) as
determined by that appraisal district, is not valid, the
comptroller, in determining the taxable value of property in the
school district under Subsection (d), shall for purposes of
Subsection (d)(13) subtract from the market value as estimated by
the comptroller of properties [residence homesteads] to which
Section 23.23 or 23.231, Tax Code, applies the amount by which that
amount exceeds the appraised value of those properties as
calculated by the appraisal district under Section 23.23 or 23.231,
Tax Code, as applicable.
SECTION 3.07. This article applies only to the appraisal of
commercial or industrial real property for ad valorem tax purposes
for a tax year that begins on or after January 1, 2018.
SECTION 3.08. Except as otherwise provided by this article,
this article takes effect January 1, 2018, but only if the
constitutional amendment proposed by the 85th Legislature, 1st
Called Session, 2017, to authorize the legislature to limit
increases in the appraised value of commercial or industrial real
property for ad valorem tax purposes to 20 percent or more of the
appraised value of the property for the preceding tax year is
approved by the voters. If that amendment is not approved by the
voters, this article has no effect.
ARTICLE 4. EFFECTIVE DATE
SECTION 4.01. Except as otherwise provided by this Act,
this Act takes effect January 1, 2018.