85S11047 SMH-F
By: Bettencourt S.B. No. 93
A BILL TO BE ENTITLED
AN ACT
relating to ad valorem taxation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.07, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The comptroller shall prescribe the form of the
worksheets to be used by the designated officer or employee of each
taxing unit in calculating the no-new-taxes tax rate and rollback
tax rate for the unit as required by Chapter 26. The form must be in
an electronic format and be capable of:
(1) being completed electronically;
(2) performing calculations automatically based on
the data entered by the designated officer or employee;
(3) being certified by the designated officer or
employee after completion; and
(4) being submitted electronically to the comptroller
on completion and certification.
SECTION 2. 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[, other than a school
district, if the tax rate is reported to the comptroller,] for the
year [preceding the year] in which the list is prepared. The
comptroller shall list the tax rates alphabetically according to:
(1) the county or counties in which each taxing unit is
located; and
(2) 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 3. Chapter 5, Tax Code, is amended by adding Section
5.092 to read as follows:
Sec. 5.092. STATEWIDE DATABASE OF OTHER PROPERTY TAX
RELATED INFORMATION. (a) The comptroller shall create and
maintain a property tax database that:
(1) contains information that is provided by
designated officers or employees of taxing units in the manner
required by the comptroller;
(2) is continuously updated as preliminary and revised
data become available to and are provided by the designated
officers or employees of taxing units;
(3) is accessible to the public; and
(4) is searchable by property address.
(b) The database must include, with respect to each property
listed on an appraisal roll:
(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-taxes 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-taxes 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 unit
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 in
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 officer or employee designated by the governing body
of each taxing unit to calculate the no-new-taxes tax rate and the
rollback tax rate for the unit must electronically submit to the
comptroller:
(1) the information described by Subsection (b) as the
information becomes available; and
(2) the worksheets prepared under Section 26.04(d-1)
at the same time the officer or employee submits the tax rates to
the governing body of the unit under Section 26.04(e).
(d) The comptroller shall deliver by e-mail to the
designated officer or employee confirmation of receipt of the
worksheets submitted under Subsection (c)(2). The comptroller
shall incorporate the worksheets into the database and make them
available to the public not later than the third day after the date
the comptroller receives them.
SECTION 4. 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 5. Sections 26.01(c) and (d), Tax Code, are amended
to read as follows:
(c) The chief appraiser shall prepare and certify to the
assessor for each taxing unit a listing of those properties which
are taxable by that unit but which are under protest and therefore
not included on the appraisal roll approved by the appraisal review
board and certified by the chief appraiser. This listing shall
include the appraised market value, productivity value (if
applicable), and taxable value as determined by the appraisal
district and shall also include the market value, taxable value,
and productivity value (if applicable) as claimed by the property
owner filing the protest if available. If the property owner does
not claim a value and the appraised value of the property in the
current year is equal to or less than its value in the preceding
year, the listing shall include a reasonable estimate of the market
value, taxable value, and productivity value (if applicable) that
would be assigned to the property if the taxpayer's claim is upheld.
If the property owner does not claim a value and the appraised value
of the property is higher than its appraised value in the preceding
year, the listing shall include the appraised market value,
productivity value (if applicable) and taxable value of the
property in the preceding year, except that if there is a reasonable
likelihood that the appraisal review board will approve a lower
appraised value for the property than its appraised value in the
preceding year, the chief appraiser shall make a reasonable
estimate of the taxable value that would be assigned to the property
if the property owner's claim is upheld. A school district [The
taxing unit] shall use the lower value for calculations as
prescribed in Section [Sections] 26.04 [and 26.041 of this code].
(d) The chief appraiser shall prepare and certify to the
assessor for each taxing unit a list of those properties of which
the chief appraiser has knowledge that are reasonably likely to be
taxable by that unit but that are not included on the appraisal roll
certified to the assessor under Subsection (a) or included on the
listing certified to the assessor under Subsection (c). The chief
appraiser shall include on the list for each property the market
value, appraised value, and kind and amount of any partial
exemptions as determined by the appraisal district for the
preceding year and a reasonable estimate of the market value,
appraised value, and kind and amount of any partial exemptions for
the current year. Until the property is added to the appraisal
roll, the assessor for the taxing unit shall include each property
on the list in the calculations prescribed by Section [Sections]
26.04 [and 26.041], and, in the case of the assessor for a school
district, shall for that purpose [shall] use the lower market
value, appraised value, or taxable value, as appropriate, included
on or computed using the information included on the list for the
property.
SECTION 6. Section 26.012(7), Tax Code, is amended to read
as follows:
(7) "Debt" means a bond, warrant, certificate of
obligation, or other evidence of indebtedness owed by a taxing unit
that has been approved at an election and is payable solely from
property taxes in installments over a period of more than one year,
not budgeted for payment from maintenance and operations funds, and
secured by a pledge of property taxes, or a payment made under
contract to secure indebtedness of a similar nature issued by
another political subdivision on behalf of the taxing unit.
SECTION 7. Section 26.012(9), Tax Code, is redesignated as
Section 26.012(18), Tax Code, and amended to read as follows:
(18) "No-new-taxes [(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-TAXES [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 8. Chapter 26, Tax Code, is amended by adding
Section 26.035 to read as follows:
Sec. 26.035. CALCULATION OF NO-NEW-TAXES AND ROLLBACK TAX
RATES OF TAXING UNIT OTHER THAN SCHOOL DISTRICT. (a) This section
does not apply to a school district.
(b) Notwithstanding Section 26.012, in this section:
(1) "Actual collection rate" means the amount computed
by dividing the total amount of taxes, including delinquent taxes
and any penalties and interest on those taxes, collected between
July 1 of a tax year and June 30 of the following tax year by the
total amount of taxes levied in the tax year, expressed as a
percentage. If the actual collection rate exceeds 100 percent, the
rate may not be reduced to 100 percent.
(2) "Adjustment for additional sales tax" means the
rate expressed in dollars per $100 of taxable value computed by
dividing the amount of additional sales and use tax revenue for the
current tax year as determined under Section 26.041 by the current
year total taxable value for rollback calculation.
(3) "Adjustment for indigent health care" means the
rate determined under Section 26.0441.
(4) "Adjustment for state criminal justice mandate"
means the rate determined under Section 26.044.
(5) "Average collection rate" means the average of the
actual collection rates for a taxing unit for the preceding three
tax years.
(6) "Current year debt rate" means a rate expressed in
dollars per $100 of taxable value computed by:
(A) adding debt service and excess collections;
(B) multiplying the amount computed under
Paragraph (A) by the average collection rate; and
(C) dividing the amount computed under Paragraph
(B) by the current year total taxable value for rollback
calculation.
(7) "Current year taxable value of homesteads subject
to tax limitation" in the case of a county, municipality, or junior
college district means the taxable value of residence homesteads
that qualify for a limitation on taxes imposed by the county,
municipality, or junior college district as provided by Section
11.261 for the current tax year.
(8) "Current year taxable value of new improvements"
means the amount computed by adding:
(A) the taxable value of new improvements to real
property that were not on the appraisal roll for the preceding tax
year; and
(B) the difference between the taxable value of
real property that is fully taxable in the current tax year but was
not taxable wholly or partly in the preceding tax year because the
real property was subject to a tax abatement agreement and the
taxable value of the real property in the preceding tax year.
(9) "Current year taxable value of property annexed"
means the taxable value of real property and personal property
located in territory annexed to a taxing unit after January 1 of the
preceding tax year.
(10) "Current year total taxable value" means the
amount computed by adding the following applicable amounts:
(A) the total taxable value of property listed on
the certified appraisal roll for the current tax year, including
all appraisal roll supplements and corrections, as of the date of
the calculation;
(B) the taxable value of properties under protest
that are included on the list prepared by the chief appraiser under
Section 26.01(c);
(C) the taxable value of properties known to the
chief appraiser that are included on the list prepared by the chief
appraiser under Section 26.01(d); and
(D) in the case of a county, the county's
apportioned amount of the market value of rolling stock certified
to the county assessor-collector by the comptroller under Section
24.38.
(11) "Current year total taxable value for rollback
calculation" means the difference between the current year total
taxable value and the current year taxable value of homesteads
subject to tax limitation.
(12) "No-new-taxes maintenance and operations rate"
means a rate expressed in dollars per $100 of taxable value computed
by:
(A) dividing the maintenance and operations tax
rate for the preceding tax year by the adopted tax rate for the
preceding tax year; and
(B) multiplying the amount computed under
Paragraph (A) by the no-new-taxes tax rate for the current tax year.
(13) "Preceding year taxable value in excess of new
special appraisal" means, for real property that has qualified for
special appraisal under Chapter 23 for the first time in the current
tax year, the difference between the taxable value of the property
in the preceding tax year and the taxable value of the property in
the current tax year.
(14) "Preceding year taxable value of homesteads
subject to tax limitation" means, for a county, municipality, or
junior college district, the taxable value of residence homesteads
that qualified for a limitation on taxes imposed by the county,
municipality, or junior college district as provided by Section
11.261 for the preceding tax year.
(15) "Preceding year taxable value of newly exempt
real property" means the amount computed by adding:
(A) in the case of real property that is wholly
exempt from taxation for the first time in the current tax year, the
taxable value of the real property in the preceding tax year; and
(B) in the case of real property that is
partially exempt from taxation in the current tax year, the
difference between the amount of the value of the property that is
exempt from taxation in the current tax year and the amount of the
value of the property that was exempt from taxation in the preceding
tax year.
(16) "Preceding year taxable value of property
disannexed" means the taxable value of property that was taxable in
the preceding tax year but is not taxable in the current tax year
because the property is located in territory that ceased to be a
part of the taxing unit after January 1 of the preceding tax year.
(17) "Preceding year total taxable value" means the
total taxable value of property listed on the certified appraisal
roll for the preceding tax year, including all appraisal roll
supplements and corrections, as of the date of the calculation.
Appraisal roll corrections include any adjustments to taxable value
resulting from final court decisions regardless of whether the
appraisal roll has been corrected under Section 42.41 as of the date
of the calculation.
(18) "Tax levy, adjusted for lost value," means the
amount computed by:
(A) subtracting from the preceding year total
taxable value the sum of the following amounts:
(i) the preceding year taxable value of
homesteads subject to tax limitation;
(ii) the preceding year taxable value of
property disannexed;
(iii) the preceding year taxable value of
newly exempt real property; and
(iv) the preceding year taxable value in
excess of new special appraisal;
(B) dividing the amount computed under Paragraph
(A) by 100; and
(C) multiplying the amount computed under
Paragraph (B) by the tax rate for the preceding tax year.
(19) "Taxable value, adjusted for new value," means
the amount computed by subtracting from the current year total
taxable value the sum of the following amounts:
(A) the current year taxable value of homesteads
subject to tax limitation;
(B) the current year taxable value of property
annexed; and
(C) the current year taxable value of new
improvements.
(c) For purposes of Subsection (b)(10)(A), appraisal roll
corrections include any adjustments to taxable value resulting from
final court decisions, regardless of whether the appraisal roll has
been corrected under Section 42.41 as of the date of the
calculation.
(d) For purposes of Subsections (b)(10)(B) and (C), the
taxable value of property means the taxable value of the property as
determined by the appraisal district rather than the value as
claimed by the property owner or estimated by the chief appraiser.
(e) The no-new-taxes tax rate of a taxing unit is the rate
expressed in dollars per $100 of taxable value computed by dividing
the tax levy, adjusted for lost value, by the taxable value,
adjusted for new value.
(f) The rollback tax rate of a taxing unit is the rate
expressed in dollars per $100 of taxable value computed by:
(1) adding the following rates:
(A) the product of the no-new-taxes maintenance
and operations rate and 1.05;
(B) the current year debt rate;
(C) the adjustment for state criminal justice
mandate; and
(D) the adjustment for indigent health care; and
(2) subtracting from the rate computed under
Subdivision (1) the adjustment for additional sales tax.
SECTION 9. 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-TAXES [EFFECTIVE] AND ROLLBACK TAX RATES.
SECTION 10. Section 26.04, Tax Code, is amended by amending
Subsections (c), (d), (e), (f), (g), (i), and (j) and adding
Subsections (d-1) and (e-2) to read as follows:
(c) An officer or employee designated by the governing body
shall calculate the no-new-taxes [effective] tax rate and the
rollback tax rate for the unit, where:
(1) "No-new-taxes tax rate" means:
(A) for a taxing unit other than a school
district, the no-new-taxes tax rate calculated under Section
26.035; and
(B) for a school district, ["Effective tax rate"
means] a rate expressed in dollars per $100 of taxable value
calculated according to the following formula:
NO-NEW-TAXES [EFFECTIVE] TAX RATE = (LAST YEAR'S LEVY -
LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)
; and
(2) "Rollback tax rate" means:
(A) for a taxing unit other than a school
district, the rollback tax rate calculated under Section 26.035;
and
(B) for a school district, the rate calculated
under Section 26.08. [a rate expressed in dollars per $100 of
taxable value calculated according to the following formula:
[ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND OPERATIONS
RATE x 1.08) + CURRENT DEBT RATE]
(d) The no-new-taxes [effective] tax rate for a county is
the sum of the no-new-taxes [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 calculate
the no-new-taxes tax rate and the rollback tax rate for the taxing
unit using the forms prescribed by the comptroller under Section
5.07(f).
(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 in the form prescribed by the comptroller:
(1) the no-new-taxes [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-taxes [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 a [the] year in which [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 a [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-2) By August 7 or as soon thereafter as practicable, the
county assessor-collector for each county shall deliver by regular
mail or e-mail to each owner of property located in the county and
shall post in a conspicuous place on the home page of the Internet
website of the county assessor-collector 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 comptroller under
Section 5.092. The notice must include:
(1) the address of the Internet website at which the
information may be found;
(2) a statement that the property owner may request a
written copy of the information from the assessor for each taxing
unit in which the property is located; and
(3) the address and telephone number of each assessor
from whom the written copy may be requested.
(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-taxes
[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, as applicable, has not complied
with the computation or publication requirements of this section or
Section 5.092(c) [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-taxes [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-taxes
[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-taxes [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-taxes [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 11. The heading to Section 26.041, Tax Code, is
amended to read as follows:
Sec. 26.041. CALCULATION OF [TAX RATE OF UNIT IMPOSING]
ADDITIONAL SALES AND USE TAX REVENUE.
SECTION 12. Sections 26.041(d), (g), and (h), Tax Code, are
amended to read as follows:
(d) In order to determine the amount of additional sales and
use tax revenue for the current tax year for purposes of calculating
the adjustment for additional sales tax under Section 26.035 [this
section], the designated officer or employee of a taxing unit shall
use the sales and use tax revenue for the last preceding four
quarters for which the information is available as the basis for
projecting the additional sales and use tax revenue for the current
tax year. If the rate of the additional sales and use tax is
increased or reduced, the projection to be used for the first tax
year after the effective date of the sales and use tax change shall
be adjusted to exclude any revenue gained or lost because of the
sales and use tax rate change. If the unit did not impose an
additional sales and use tax for the last preceding four quarters,
the designated officer or employee shall request the comptroller of
public accounts to provide to the officer or employee a report
showing the estimated amount of taxable sales and uses within the
unit for the previous four quarters as compiled by the comptroller,
and the comptroller shall comply with the request. The officer or
employee shall prepare the estimate of the additional sales and use
tax revenue for the first year of the imposition of the tax by
multiplying the amount reported by the comptroller by the
appropriate additional sales and use tax rate and by multiplying
that product by .95.
(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 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 rate. In the first year in which an additional sales and use
tax rate is increased, the amount of additional sales and use tax
revenue calculated under this section must include [effective tax
rate for the unit is the effective tax rate before the increase
minus a number the numerator of which is] the revenue projected to
be generated as a result of the increase in the additional sales and
use tax rate [, 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 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 rate.
In the first year in which an additional sales and use tax rate is
decreased, the amount of additional sales and use tax revenue
calculated under this section may not include [effective tax rate
for the unit is the effective tax rate before the decrease plus a
number the numerator of which is] the revenue projected to be lost
as a result of the decrease in the additional sales and use tax rate
[, as determined under this subsection, and the denominator of
which is the current total value minus the new property value].
SECTION 13. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK AND NO-NEW-TAXES [EFFECTIVE] TAX
RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 14. 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-taxes [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-taxes [effective] or rollback
tax rate refers to that rate as adjusted under this section.
SECTION 15. Section 26.044, Tax Code, is amended to read as
follows:
Sec. 26.044. ROLLBACK [EFFECTIVE] TAX RATE TO PAY FOR STATE
CRIMINAL JUSTICE MANDATE. (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 adjustment for state
criminal justice mandate under Section 26.035 is the rate expressed
in dollars per $100 of taxable value calculated by dividing the
state criminal justice mandate by the current year total taxable
value for rollback calculation. [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 adjustment
for state criminal justice mandate under Section 26.035 is the rate
expressed in dollars per $100 of taxable value calculated by:
(1) subtracting the previous year's state criminal
justice mandate from the state criminal justice mandate for the
current year; and
(2) dividing the amount computed under Subdivision (1)
by the current year total taxable value for rollback calculation.
[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
rollback tax [effective maintenance and operation] rate as a result
of the adjustment for state criminal justice mandate [provided by
this section], including a description and the amount of the state
criminal justice mandate, in the information published under
Section 26.04(e) and, if applicable, Section 26.06(b) [of this
code].
(d) In this section:
(1) "Adjustment for state criminal justice mandate"
and "current year total taxable value for rollback calculation"
have the meanings assigned by Section 26.035.
(2) "State[, "state] criminal justice mandate" means
the amount spent by the county in the previous 12 months providing
for the maintenance and operation cost of keeping inmates in
county-paid facilities after they have been sentenced to the Texas
Department of Criminal Justice as certified by the county auditor
based on information provided by the county sheriff, minus the
amount received from state revenue for reimbursement of such costs.
SECTION 16. Section 26.0441, Tax Code, is amended to read as
follows:
Sec. 26.0441. ROLLBACK TAX RATE ADJUSTMENT FOR INDIGENT
HEALTH CARE. (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 adjustment for indigent health care under Section 26.035
is the rate expressed in dollars per $100 of taxable value
calculated by dividing the enhanced indigent health care
expenditures by the current year total taxable value for rollback
calculation. [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 adjustment for indigent health
care under Section 26.035 is the rate expressed in dollars per $100
of taxable value calculated by:
(1) subtracting the preceding tax year's enhanced
indigent health care expenditures from the current tax year's
enhanced indigent health care expenditures; and
(2) dividing the amount computed under Subdivision (1)
by the current year total taxable value for rollback calculation.
[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 rollback tax [effective maintenance and operations] rate as
a result of the adjustment for indigent health care [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).
(d) In this section:
(1) "Adjustment for indigent health care" and "current
year total taxable value for rollback calculation" have the
meanings assigned by Section 26.035.
(2) "Enhanced[, "enhanced] indigent health care
expenditures" for a tax year means the amount spent by the taxing
unit for the maintenance and operation costs of providing indigent
health care at the increased minimum eligibility standards
established under Section 61.006, Health and Safety Code, effective
on or after January 1, 2000, in the period beginning on July 1 of the
year preceding the tax year for which the tax is adopted and ending
on June 30 of the tax year for which the tax is adopted, less the
amount of state assistance received by the taxing unit in
accordance with Chapter 61, Health and Safety Code, that is
attributable to those costs.
SECTION 17. Section 26.05, Tax Code, is amended by adding
Subsections (a-1), (d-1), (d-2), (e-1), and (e-2) and amending
Subsections (b), (c), (d), and (g) to read as follows:
(a-1) This subsection applies only to a taxing unit that
imposes an additional sales and use tax. For purposes of Subsection
(a)(2), the amount needed to fund maintenance and operation
expenditures of the taxing unit for the next year is reduced by the
amount, if any, by which the amount of additional sales and use tax
revenue that will be generated by the additional sales and use tax
in the current tax year as calculated under Section 26.041 exceeds
the amount published under Section 26.04(e)(3)(C).
(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-taxes [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-taxes [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-taxes [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-taxes [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-taxes
[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-TAXES
[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 the [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-taxes
[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-TAXES
[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-taxes [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-taxes [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-taxes
[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-taxes tax rate and the rollback tax rate for the unit
electronically submits to the comptroller the information
described by Section 5.092(c).
(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 comptroller has included the information for
the current tax year specified by Section 5.092 in the
comptroller's property tax database; and
(2) the county assessor-collector for each county in
which all or part of the territory of the taxing unit is located has
delivered the notice required by Section 26.04(e-2).
(e-1) The governing body of a taxing unit that imposes an
additional sales and use tax may not adopt a tax rate until the
chief financial officer or auditor for the unit submits to the
governing body of the unit a written certification that:
(1) the amount of additional sales and use tax revenue
that will be used to pay debt service has been deducted from the
total amount published under Section 26.04(e)(3)(C) as required by
Subsection (a)(1) of this section; and
(2) if applicable, the amount by which the amount of
additional sales and use tax revenue that will be generated by the
additional sales and use tax in the current tax year as calculated
under Section 26.041 exceeds the amount published under Section
26.04(e)(3)(C) has been deducted from the amount needed to fund
maintenance and operation expenditures of the unit for the next
year as required by Subsection (a-1) of this section.
(e-2) The comptroller shall adopt rules governing the form
of the certification required by Subsection (e-1) and the manner in
which it is required to be submitted.
(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-taxes [effective] tax rate
and the rollback tax rate of the district shall be calculated based
on the certified estimate of taxable value.
SECTION 18. Section 26.052(e), Tax Code, is amended 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-taxes [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-taxes [effective] tax rate)."
SECTION 19. 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-taxes
[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 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 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-taxes [effective tax] rate for
this year of $____ (no-new-taxes [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. The [If the taxing
unit operates an Internet website, the] notice must be posted on the
Internet website operated by the taxing unit 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-taxes [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-taxes [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-taxes [effective] tax rate.
SECTION 20. Section 26.065(b), Tax Code, is amended to read
as follows:
(b) The taxing [If the taxing unit owns, operates, or
controls an Internet website, the] unit shall post notice of the
public hearing on the Internet website owned, operated, or
controlled by the unit 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 21. 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-taxes [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-taxes [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-taxes
[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-taxes [effective] maintenance and operations tax
rate for that preceding tax year.
SECTION 22. 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-taxes
[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 23. Section 26.16, Tax Code, is amended by amending
Subsections (a) and (d) and adding Subsection (a-1) to read as
follows:
(a) Each county shall maintain an Internet website. The
county assessor-collector for each county [that maintains an
Internet website] shall post on the Internet website maintained by
[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-taxes [effective] tax rate;
(5) the no-new-taxes [effective] maintenance and
operations rate; and
(6) the rollback tax rate.
(a-1) For purposes of Subsection (a), a reference to the
no-new-taxes tax rate or the no-new-taxes 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-taxes [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-taxes [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 24. Section 321.106(e), Tax Code, is amended to
read as follows:
(e) If, in a municipality where a fire control, prevention,
and emergency medical services district is composed of the whole
municipality, a municipal sales and use tax or a municipal sales and
use tax rate increase for the purpose of financing a fire control,
prevention, and emergency medical services district is approved,
the municipality is responsible for distributing to the district
that portion of the municipal sales and use tax revenue received
from the comptroller that is to be used for the purposes of
financing the fire control, prevention, and emergency medical
services district. Not later than the 10th day after the date the
municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the fire control, prevention, and emergency medical
services portion of the tax rate bears to the total sales and use
tax rate of the municipality. The amounts distributed to a fire
control, prevention, and emergency medical services district are
not considered to be sales and use tax revenue for the purpose of
computations [property tax reduction and computation of the
municipal tax rate] under Section 26.041.
SECTION 25. Section 321.108(f), Tax Code, is amended to
read as follows:
(f) If, in a municipality in which a crime control and
prevention district is composed of the whole municipality, a
municipal sales and use tax or a municipal sales and use tax rate
increase for the purpose of financing a crime control and
prevention district is approved, the municipality is responsible
for distributing to the district that portion of the municipal
sales and use tax revenue received from the comptroller that is to
be used for the purposes of financing the crime control and
prevention district. Not later than the 10th day after the date
the municipality receives money under this section from the
comptroller, the municipality shall make the distribution in the
proportion that the crime control and prevention portion of the tax
rate bears to the total sales and use tax rate of the
municipality. The amounts distributed to a crime control and
prevention district are not considered to be additional municipal
sales and use tax revenue for the purpose of computations [property
tax reduction and computation of the municipal tax rate] under
Section 26.041.
SECTION 26. Section 323.105(f), Tax Code, is amended to
read as follows:
(f) If, in a county where a crime control and prevention
district is composed of the whole county, a county sales and use tax
or a county sales and use tax rate increase for the purpose of
financing a crime control and prevention district is approved, the
county is responsible for distributing to the district that portion
of the county sales and use tax revenue received from the
comptroller that is to be used for the purposes of financing the
crime control and prevention district. Not later than the 10th day
after the date the county receives funds under this section from the
comptroller, the county shall make the distribution in the
proportion that the crime control and prevention portion of the tax
rate bears to the total sales and use tax rate of the county. The
amounts distributed to a crime control and prevention district are
not considered to be sales and use tax revenue for the purpose of
computations [property tax reduction and computation of the county
tax rate] under Section 26.041, Tax Code.
SECTION 27. 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-taxes [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 28. 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-taxes [effective] tax rate;
(C) the no-new-taxes [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 29. 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-taxes [effective] tax rate;
(C) the no-new-taxes [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 30. 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-taxes [effective] tax rate;
(C) the no-new-taxes [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 31. 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-taxes [effective] tax rate;
(C) the no-new-taxes [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 32. Sections 140.010(a), (d), and (e), Local
Government Code, are amended to read as follows:
(a) In this section, "no-new-taxes ["effective] tax rate"
and "rollback tax rate" mean the no-new-taxes [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-taxes [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-TAXES [EFFECTIVE TAX] RATE $______ per $100
"The no-new-taxes [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-taxes [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-taxes
[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-TAXES [EFFECTIVE TAX] RATE $______ per $100
ROLLBACK TAX RATE $______ per $100
"The no-new-taxes [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 voters are entitled to
petition for an election to limit the rate that may be approved to
the rollback 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)."
SECTION 33. The following provisions are repealed:
(1) Section 26.03, Tax Code;
(2) Sections 26.041(a), (b), (c), and (e), Tax Code;
and
(3) Section 26.045, Tax Code.
SECTION 34. (a) Not later than September 1, 2019, the
comptroller shall appoint the members of an advisory group to
provide to the comptroller advice and assistance regarding the
creation and operation of the property tax database required by
Section 5.092, Tax Code, as added by this Act, and related matters.
The advisory group is composed of 13 members as follows:
(1) one person who is an employee of the office of the
lieutenant governor;
(2) one person who is an employee of the office of the
speaker of the house of representatives;
(3) four persons who are county tax
assessor-collectors;
(4) two persons who are assessors or collectors for
taxing units but are not county tax assessor-collectors;
(5) two persons who are chief appraisers of appraisal
districts;
(6) one person who is a financial officer or auditor of
a municipality;
(7) one person who is a financial officer or auditor of
a county; and
(8) one person who is a representative of water
districts.
(b) The advisory group is abolished and this section expires
December 31, 2021.
SECTION 35. The comptroller shall comply with Sections
5.07(f) and 5.092, Tax Code, as added by this Act, not later than
June 1, 2020.
SECTION 36. (a) Except as provided by Subsections (b), (c),
and (d) of this section, this Act takes effect January 1, 2018.
(b) The following provisions take effect December 1, 2017:
(1) Section 5.091, Tax Code, as amended by this Act;
(2) Section 34 of this Act; and
(3) Section 26.065(b), Tax Code, as amended by this
Act.
(c) The following provisions take effect September 1, 2019:
(1) Section 5.07(f), Tax Code, as added by this Act;
and
(2) Section 5.092, Tax Code, as added by this Act.
(d) The following provisions take effect January 1, 2020:
(1) Sections 25.19(b) and (i), Tax Code, as amended by
this Act;
(2) Sections 26.04(d-1) and (e-2), Tax Code, as added
by this Act;
(3) Section 26.04(g), Tax Code, as amended by this
Act; and
(4) Sections 26.05(d-1) and (d-2), Tax Code, as added
by this Act.