85S11073 SMH-F
By: Bettencourt S.B. No. 96
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. This Act may be cited as the Texas Property Tax
Reform and Relief Act of 2017.
SECTION 2. 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.
(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 3. Section 5.05, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) An appraisal district shall appraise property in
accordance with any appraisal manuals prepared and issued by the
comptroller under this section.
SECTION 4. 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 equivalent tax rate and the rollback tax
rate for the unit as required by Chapter 26; and
(2) school district to calculate and submit the
equivalent 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 electronically incorporated
into the real-time tax rate database maintained by the tax rate
officer of each appraisal district and submitted electronically to
the county assessor-collector of each county in which all or part of
the territory of 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 change in the values
used to calculate a tax rate, including the changes resulting from
the implementation in the 2018 tax year of S.B. 1, Acts of the 85th
Legislature, 1st Called Session, 2017, or similar legislation
enacted at that session, or a change in a subsequent tax year
resulting from a statutory change in a value used to calculate a tax
rate. The forms may also be updated at the discretion of the
comptroller 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 5. 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 6. Sections 5.102(a) and (c), Tax Code, are 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, including compliance with standards,
procedures, and methodology prescribed by appraisal manuals
prepared and issued by the comptroller. 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.
(c) At the conclusion of the review, the comptroller shall,
in writing, notify the appraisal district concerning its
performance in the review. If the review results in a finding that
an appraisal district is not in compliance with generally accepted
standards, procedures, and methodology, including compliance with
standards, procedures, and methodology prescribed by appraisal
manuals prepared and issued by the comptroller, the comptroller
shall deliver a report that details the comptroller's findings and
recommendations for improvement to:
(1) the appraisal district's chief appraiser and board
of directors; and
(2) the superintendent and board of trustees of each
school district participating in the appraisal district.
SECTION 7. Section 5.13(d), Tax Code, is amended to read as
follows:
(d) In conducting a general audit, the comptroller shall
consider and report on:
(1) the extent to which the district complies with
applicable law or generally accepted standards of appraisal or
other relevant practice, including appraisal standards and
practices prescribed by appraisal manuals prepared and issued by
the comptroller;
(2) the uniformity and level of appraisal of major
kinds of property and the cause of any significant deviations from
ideal uniformity and equality of appraisal of major kinds of
property;
(3) duplication of effort and efficiency of operation;
(4) the general efficiency, quality of service, and
qualification of appraisal district personnel; and
(5) except as otherwise provided by Subsection (b) [of
this section], any other matter included in the request for the
audit.
SECTION 8. Section 6.035(a-1), Tax Code, is amended to read
as follows:
(a-1) An individual is ineligible to serve on an appraisal
district board of directors if the individual has 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 at any time during the preceding three [five] years.
SECTION 9. Section 6.05, Tax Code, is amended by adding
Subsection (k) to read as follows:
(k) The chief appraiser shall establish an office of tax
rate notices in the appraisal district. The office is responsible
for delivering the notice required by Section 26.04(e-2) and
creating and maintaining the database required by Section 26.17.
The office is administered by the tax rate officer, who is appointed
by and serves at the pleasure of the chief appraiser. The chief
appraiser may designate other personnel to assist the tax rate
officer in performing the functions of the office. In all
communications, the office must identify itself as the "(insert
name of county in which appraisal district is established) County
Office of Tax Rate Notices" rather than as the appraisal district.
SECTION 10. Section 6.15, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) Subsections (a) and (b) do not prohibit a member of
the board of directors of an appraisal district from transmitting
to the chief appraiser without comment a complaint by a property
owner or taxing unit about the appraisal of a specific property,
provided that the transmission is in writing.
SECTION 11. 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 for an appraisal district described
by Subsection (b-2), 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 12. 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 13. Section 6.42, Tax Code, is amended by adding
Subsection (d) to read as follows:
(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 14. 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 10 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 15. Section 11.4391(a), Tax Code, is amended to
read as follows:
(a) The chief appraiser shall accept and approve or deny an
application for an exemption for freeport goods under Section
11.251 after the deadline for filing it has passed if it is filed
not later than June 1 [before the date the appraisal review board
approves the appraisal records].
SECTION 16. Section 22.23, Tax Code, is amended to read as
follows:
Sec. 22.23. FILING DATE. (a) Rendition statements and
property reports must be delivered to the chief appraiser after
January 1 and not later than April 1 [15], except as provided by
Section 22.02.
(b) On written request by the property owner, the chief
appraiser shall extend a deadline for filing a rendition statement
or property report to a date not later than May 1 [15]. The chief
appraiser may further extend the deadline an additional 15 days
upon good cause shown in writing by the property owner.
(c) Notwithstanding any other provision of this section,
rendition statements and property reports for property regulated by
the Public Utility Commission of Texas, the Railroad Commission of
Texas, the federal Surface Transportation Board, or the Federal
Energy Regulatory Commission must be delivered to the chief
appraiser not later than April 30, except as provided by Section
22.02. The chief appraiser may extend the filing deadline 15 days
for good cause shown in writing by the property owner.
SECTION 17. Section 23.01(b), Tax Code, is amended to read
as follows:
(b) The market value of property shall be determined by the
application of generally accepted appraisal methods and
techniques, including appraisal methods and techniques prescribed
by appraisal manuals prepared and issued by the comptroller. If the
appraisal district determines the appraised value of a property
using mass appraisal standards, the mass appraisal standards must
comply with the Uniform Standards of Professional Appraisal
Practice. The same or similar appraisal methods and techniques
shall be used in appraising the same or similar kinds of property.
However, each property shall be appraised based upon the individual
characteristics that affect the property's market value, and all
available evidence that is specific to the value of the property
shall be taken into account in determining the property's market
value.
SECTION 18. Sections 25.19(a) and (g), Tax Code, are
amended to read as follows:
(a) By April 15 [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 clear and understandable written notice
to a property owner of the appraised value of the property owner's
property if:
(1) the appraised value of the property is greater
than it was in the preceding year;
(2) the appraised value of the property is greater
than the value rendered by the property owner;
(3) the property was not on the appraisal roll in the
preceding year; or
(4) an exemption or partial exemption approved for the
property for the preceding year was canceled or reduced for the
current year.
(g) By April 15 [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;
(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.
SECTION 19. 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 20. 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 21. Section 25.22(a), Tax Code, is amended to read
as follows:
(a) By May 1 [15] or as soon thereafter as practicable, the
chief appraiser shall submit the completed appraisal records to the
appraisal review board for review and determination of protests.
However, the chief appraiser may not submit the records until the
chief appraiser has delivered the notices required by Subsection
(d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
(d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
(d) of Section 23.85, Subsection (d) of Section 23.95, Subsection
(d) of Section 23.9805, and Section 25.19.
SECTION 22. Sections 26.01(a) and (e), Tax Code, are
amended to read as follows:
(a) By July 10 [25], the chief appraiser shall prepare and
certify to the assessor for each taxing unit participating in the
district that part of the appraisal roll for the district that lists
the property taxable by the unit. The part certified to the
assessor is the appraisal roll for the unit. The chief appraiser
shall consult with the assessor for each taxing unit and notify each
unit in writing by April 1 of the form in which the roll will be
provided to each unit.
(e) Except as provided by Subsection (f), not later than May
15 [April 30], the chief appraiser shall prepare and certify to the
assessor for each county, municipality, and school district
participating in the appraisal district an estimate of the taxable
value of property in that taxing unit. The chief appraiser shall
assist each county, municipality, and school district in
determining values of property in that taxing unit for the taxing
unit's budgetary purposes.
SECTION 23. Section 26.012, Tax Code, is amended by
amending Subdivisions (9) and (10) and adding Subdivision (19) to
read as follows:
(9) "Equivalent [Effective] maintenance and
operations rate" means a rate expressed in dollars per $100 of
taxable value and calculated according to the following formula:
EQUIVALENT [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)
(10) "Excess collections" means the amount, if any, by
which debt taxes collected in the preceding year exceeded the
amount anticipated in the preceding year's calculation of the
rollback tax rate, as certified by the collector under Section
26.04(b) [of this code].
(19) "Small taxing unit" means a taxing unit, other
than a school district, for which the total tax rate proposed for
the current tax year:
(A) is two cents or less per $100 of taxable
value; or
(B) would impose taxes of $20 million or less
when applied to the current total value for the taxing unit.
SECTION 24. The heading to Section 26.04, Tax Code, is
amended to read as follows:
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
EQUIVALENT [EFFECTIVE] AND ROLLBACK TAX RATES.
SECTION 25. Section 26.04, Tax Code, is amended by amending
Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and (j) and
adding Subsections (c-1), (d-1), (d-2), (d-3), (e-2), (e-3), (e-4),
(e-5), (h-1), and (h-2) 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 July 15 [August 1] or as soon
thereafter as practicable. By July 15 [August 1] or as soon
thereafter as practicable, the taxing unit's collector shall
certify [an estimate of] the anticipated collection rate as
calculated under Subsections (h), (h-1), and (h-2) 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 equivalent [effective] tax rate
and the rollback tax rate for the unit, where:
(1) "Equivalent [Effective] tax rate" means a rate
expressed in dollars per $100 of taxable value calculated according
to the following formula:
EQUIVALENT [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 applicable formula:
(A) for a small taxing unit:
ROLLBACK TAX RATE = (EQUIVALENT [EFFECTIVE]
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
RATE
; or
(B) for a taxing unit other than a small taxing
unit:
ROLLBACK TAX RATE = (EQUIVALENT MAINTENANCE AND
OPERATIONS RATE x 1.04) + CURRENT DEBT RATE
(c-1) Notwithstanding any other provision of this section,
the governing body of a taxing unit other than a small taxing unit
may direct the designated officer or employee to calculate the
rollback tax rate of the unit in the manner provided for a small
taxing unit if any part of the unit is located in an area declared a
disaster area during the current tax year by the governor or by the
president of the United States.
(d) The equivalent [effective] tax rate for a county is the
sum of the equivalent [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 equivalent tax rate and the rollback tax
rate.
(d-2) The designated officer or employee may not submit the
equivalent 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.
(d-3) As soon as practicable after the designated officer or
employee calculates the equivalent tax rate and the rollback tax
rate of the taxing unit, the designated officer or employee shall
submit the worksheets used in calculating the rates to the county
assessor-collector for each county in which all or part of the
territory of the unit is located.
(e) By July 22 [August 7] or as soon thereafter as
practicable, the designated officer or employee shall submit the
rates to the governing body. By July 27, the designated officer or
employee [He] shall deliver by mail to each property owner in the
unit, [or] publish in a newspaper, or post prominently on the home
page of the unit's Internet website, if applicable, in the form
prescribed by the comptroller:
(1) the equivalent [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 equivalent [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 July 22 or as soon thereafter as practicable, the
tax rate officer 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 real-time tax rate database
maintained by the tax rate officer under Section 26.17. The notice
must include:
(1) the following statement:
"PROPOSED (tax year) PROPERTY TAX BILL INFORMATION
"Information concerning the (insert tax year) property taxes
on your property proposed by your local taxing units, together with
information about expressing your support for or opposition to the
proposed property taxes, may be found in the real-time tax rate
notice 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).
(e-5) The governing body of a taxing unit shall include as
an appendix to the unit's budget for a fiscal year the worksheets
used by the designated officer or employee of the unit to calculate
the equivalent tax rate and the rollback tax rate of the unit for
the tax year in which the fiscal year begins.
(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 equivalent
[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 tax rate officer 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 26.16, 26.17, or 26.18 [and
the failure to comply was not in good faith].
(h-1) Notwithstanding Subsection (h), if the anticipated
collection rate of a taxing unit as calculated under that
subsection is lower than the lowest actual collection rate of the
taxing unit for any of the preceding three years, the anticipated
collection rate of the taxing unit for purposes of this section is
equal to the lowest actual collection rate of the taxing unit for
any of the preceding three years.
(h-2) The anticipated collection rate of a taxing unit for
purposes of this section is the rate calculated under Subsection
(h) as modified by Subsection (h-1), if applicable, regardless of
whether that rate exceeds 100 percent.
(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 equivalent [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 equivalent
[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 equivalent [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 equivalent [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 26. Section 26.041, Tax Code, is amended by
amending Subsections (a), (b), (c), (e), (g), and (h) and adding
Subsection (c-1) to read as follows:
(a) In the first year in which an additional sales and use
tax is required to be collected, the equivalent [effective] tax
rate and rollback tax rate for the unit are calculated according to
the following formulas:
EQUIVALENT [EFFECTIVE] TAX RATE = [(LAST YEAR'S LEVY -
LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] - SALES TAX GAIN RATE
and
ROLLBACK TAX RATE FOR SMALL TAXING UNIT = (EQUIVALENT
[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE x 1.08) +
CURRENT DEBT RATE - SALES TAX GAIN RATE
or
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
TAXING UNIT = (EQUIVALENT MAINTENANCE AND OPERATIONS
RATE x 1.04) + 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 applicable formula, regardless of
whether the unit levied a property tax in the preceding year:
ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT
DEBT RATE - SALES TAX REVENUE RATE)
or
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
EXPENSE x 1.04) / (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 equivalent [effective] tax rate and rollback tax
rate for the unit are calculated according to the following
formulas:
EQUIVALENT [EFFECTIVE] TAX RATE = [(LAST YEAR'S LEVY -
LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
PROPERTY VALUE)] + SALES TAX LOSS RATE
[and]
ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT
DEBT RATE
and
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
EXPENSE x 1.04) / (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.
(c-1) Notwithstanding any other provision of this section,
the governing body of a taxing unit other than a small taxing unit
may direct the designated officer or employee to calculate the
rollback tax rate of the unit in the manner provided for a small
taxing unit if any part of the unit is located in an area declared a
disaster area during the current tax year by the governor or by the
president of the United States.
(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 equivalent [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 equivalent [effective] tax rate for
the unit is the equivalent [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 equivalent [effective] tax rate for the unit is
the equivalent [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 27. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK AND EQUIVALENT [EFFECTIVE] TAX RATES
[RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 28. 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 equivalent [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 equivalent [effective] or rollback
tax rate refers to that rate as adjusted under this section.
SECTION 29. The heading to Section 26.044, Tax Code, is
amended to read as follows:
Sec. 26.044. EQUIVALENT [EFFECTIVE] TAX RATE TO PAY FOR
STATE CRIMINAL JUSTICE MANDATE.
SECTION 30. 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 equivalent [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 equivalent
[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
equivalent [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 31. 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 equivalent [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 equivalent [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 equivalent [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 32. Section 26.05, Tax Code, is amended by amending
Subsections (a), (b), (c), (d), (e), and (g) and adding Subsections
(d-1), (d-2), and (e-1) to read as follows:
(a) The governing body of each taxing unit[, before the
later of September 30 or the 60th day after the date the certified
appraisal roll is received by the taxing unit,] shall adopt a tax
rate for the current tax year and shall notify the assessor for the
unit of the rate adopted. The governing body must adopt a tax rate
before the later of September 30 or the 60th day after the date the
certified appraisal roll is received by the taxing unit, except
that the governing body must adopt a tax rate that exceeds the
rollback tax rate before August 15. The tax rate consists of two
components, each of which must be approved separately. The
components are:
(1) for a taxing unit other than a school district, the
rate that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used to
pay debt service, or, for a school district, the rate calculated
under Section 44.004(c)(5)(A)(ii)(b), Education Code; and
(2) the rate that, if applied to the total taxable
value, will impose the amount of taxes needed to fund maintenance
and operation expenditures of the unit for the next year.
(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 equivalent [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 equivalent [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 equivalent [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 equivalent [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 equivalent
[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 EQUIVALENT [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 of [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 equivalent
[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 EQUIVALENT [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 equivalent
[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 equivalent [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 equivalent
[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
equivalent 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 tax rate officer of each appraisal district in
which the taxing unit participates has delivered the notice
required by Section 26.04(e-2);
(2) the designated officer or employee of the taxing
unit has:
(A) entered in the real-time tax rate database
maintained by the tax rate officer the information described by
Section 26.17(b) for the current tax year; and
(B) incorporated the completed tax rate
calculation forms prepared under Section 26.04(d-1) into the
real-time tax rate database maintained by the tax rate officer; 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].
(e-1) The governing body of a taxing unit that imposes an
additional sales and use tax may not adopt the component of the tax
rate of the unit described by Subsection (a)(1) of this section
until the chief financial officer or the auditor for the unit
submits to the governing body of the unit a written certification
that 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. The comptroller shall adopt rules
governing the form of the certification required by this subsection
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 equivalent [effective] tax rate and
the rollback tax rate of the district shall be calculated based on
the certified estimate of taxable value.
SECTION 33. Sections 26.052(c) and (e), Tax Code, are
amended to read as follows:
(c) A taxing unit to which this section applies may provide
public notice of its proposed tax rate in one [either] of the
following methods not later than the seventh day before the date on
which the tax rate is adopted:
(1) mailing a notice of the proposed tax rate to each
owner of taxable property in the taxing unit; [or]
(2) publishing notice of the proposed tax rate in the
legal notices section of a newspaper having general circulation in
the taxing unit; or
(3) posting notice of the proposed tax rate
prominently on the home page of the Internet website maintained by
the taxing unit, if applicable.
(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 equivalent [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 equivalent [effective] tax rate)."
SECTION 34. Section 26.06, Tax Code, is amended by amending
Subsections (b), (c), (d), and (e) and adding Subsections (b-1),
(b-2), (b-3), (b-4), (b-5), (b-6), and (b-7) 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 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 effective tax rate for this year of $____
(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."]
(b-1) This subsection and Subsections (b-2) and (b-3) apply
only to a small taxing unit. If the proposed tax rate exceeds the
equivalent tax rate and the rollback tax rate of the taxing unit,
the notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt before the voters by petition may require
that an election be held to determine whether or not to reduce the
tax rate to the rollback tax rate.
"The proposed tax rate is greater than the equivalent tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is also greater than the rollback tax
rate. If (name of taxing unit) adopts the proposed tax rate, the
voters by petition may require that an election be held to determine
whether or not to reduce the tax rate to the rollback tax rate. The
requirements for a petition may be found in Sections 26.07 and
26.081, Tax Code.
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-2) If the proposed tax rate exceeds the equivalent tax
rate but does not exceed the rollback tax rate of the taxing unit,
the notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt before the voters by petition may require
that an election be held to determine whether or not to reduce the
tax rate to the rollback tax rate.
"The proposed tax rate is greater than the equivalent tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is not greater than the rollback tax
rate. As a result, the voters may not petition for an election to be
held to determine whether or not to reduce the tax rate to the
rollback tax rate. However, you may express your support for or
opposition to the proposed tax rate by contacting the members of the
(name of governing body) of (name of taxing unit) at their offices
or by attending one of the public hearings mentioned above.
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-3) If the proposed tax rate does not exceed the
equivalent tax rate but exceeds the rollback tax rate of the taxing
unit, the notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt before the voters by petition may require
that an election be held to determine whether or not to reduce the
tax rate to the rollback tax rate.
"The proposed tax rate is not greater than the equivalent tax
rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is greater than the rollback tax rate.
If (name of taxing unit) adopts the proposed tax rate, the voters by
petition may require that an election be held to determine whether
or not to reduce the tax rate to the rollback tax rate. The
requirements for a petition may be found in Sections 26.07 and
26.081, Tax Code.
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-4) This subsection and Subsections (b-5) and (b-6) apply
only to a taxing unit other than a small taxing unit. If the
proposed tax rate exceeds the equivalent tax rate and the rollback
tax rate of the taxing unit, the notice must contain a statement in
the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt without holding an election to ratify the
rate.
"The proposed tax rate is greater than the equivalent tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is also greater than the rollback tax
rate. If (name of taxing unit) adopts the proposed tax rate, (name
of taxing unit) is required to hold an election so that the voters
may accept or reject the proposed tax rate. If a majority of the
voters reject the proposed tax rate, the (name of taxing unit) will
be required to adopt a new tax rate that is not greater than the
rollback tax rate. The election will be held on (date of election).
You may contact the (name of office responsible for administering
the election) for information about voting locations. The hours of
voting on election day are (voting hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-5) If the proposed tax rate exceeds the equivalent tax
rate but does not exceed the rollback tax rate of the taxing unit,
the notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt without holding an election to ratify the
rate.
"The proposed tax rate is greater than the equivalent tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is not greater than the rollback tax
rate. As a result, (name of taxing unit) is not required to hold an
election at which voters may accept or reject the proposed tax rate.
However, you may express your support for or opposition to the
proposed tax rate by contacting the members of the (name of
governing body) of (name of taxing unit) at their offices or by
attending one of the public hearings mentioned above.
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-6) If the proposed tax rate does not exceed the
equivalent tax rate but exceeds the rollback tax rate of the taxing
unit, the notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt without holding an election to ratify the
rate.
"The proposed tax rate is not greater than the equivalent tax
rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"A second public hearing will be held on (date and time) at
(meeting place).
"The proposed tax rate is greater than the rollback tax rate.
If (name of taxing unit) adopts the proposed tax rate, (name of
taxing unit) is required to hold an election so that the voters may
accept or reject the proposed tax rate. If a majority of the voters
reject the proposed tax rate, the (name of taxing unit) will be
required to adopt a new tax rate that is not greater than the
rollback tax rate. The election will be held on (date of election).
You may contact the (name of office responsible for administering
the election) for information about voting locations. The hours of
voting on election day are (voting hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(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.)"
(b-7) In addition to including the information described by
Subsection (b-1), (b-2), (b-3), (b-4), (b-5), or (b-6), as
applicable, the notice must include the information described by
Section 26.062.
(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, or posted prominently on the home page of
the Internet website of the unit. 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
posts the notice on [operates] an Internet website operated by the
unit, the notice must be posted on the website from the date the
notice is first posted [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
equivalent [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 seventh [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 equivalent
[effective] tax rate by the seventh [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 equivalent [effective] tax
rate.
SECTION 35. Chapter 26, Tax Code, is amended by adding
Sections 26.061 and 26.062 to read as follows:
Sec. 26.061. NOTICE OF MEETING TO VOTE ON PROPOSED TAX RATE
THAT DOES NOT EXCEED LOWER OF EQUIVALENT OR ROLLBACK TAX RATE. (a)
This section applies only to the governing body of a taxing unit
other than a school district that proposes to adopt a tax rate that
does not exceed the lower of the equivalent tax rate or the rollback
tax rate calculated as provided by this chapter.
(b) The notice of the meeting at which the governing body of
the taxing unit will vote on the proposed tax rate must contain a
statement in the following form:
"NOTICE OF MEETING TO VOTE ON TAX RATE
"PROPOSED TAX RATE $__________per $100
"EQUIVALENT TAX RATE $__________per $100
"ROLLBACK TAX RATE $__________per $100
"The equivalent tax rate is the tax rate for the (current tax
year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (name of
taxing unit) may adopt (insert "before the voters are entitled to
petition for an election to limit the rate that may be approved to
the rollback tax rate" if Section 26.07 applies or "without holding
an election to ratify the rate" if Section 26.08 applies).
"The proposed tax rate is not greater than the equivalent tax
rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public meeting to vote on the proposed tax rate will be
held on (date and time) at (meeting place).
"The proposed tax rate is also not greater than the rollback
tax rate. As a result, (insert "the voters are not entitled to
petition for an election to limit the rate that may be approved to
the rollback tax rate" if Section 26.07 applies or "(name of taxing
unit) is not required to hold an election to ratify the rate" if
Section 26.08 applies). However, you may express your support for
or opposition to the proposed tax rate by contacting the members of
the (name of governing body) of (name of taxing unit) at their
offices or by attending the public meeting mentioned above.
"Your taxes owed under any of the above rates can be
calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposed tax rate or, if one or more were absent,
indicating the absences.)"
(c) In addition to including the information described by
Subsection (b), the notice must include the information described
by Section 26.062.
Sec. 26.062. ADDITIONAL INFORMATION TO BE INCLUDED IN TAX
RATE NOTICE. (a) In addition to the information described by
Section 26.06(b-1), (b-2), (b-3), (b-4), (b-5), or (b-6) or 26.061,
as applicable, a notice required by that provision must include at
the end of the notice:
(1) a statement in the following form:
"The following table compares the taxes imposed on the
average residence homestead by (name of taxing unit) last year to
the taxes proposed to be imposed on the average residence homestead
by (name of taxing unit) this year:";
(2) a table in the form required by this section
following the statement described by Subdivision (1); and
(3) a statement in the following form following the
table:
(A) if the tax assessor for the taxing unit
maintains an Internet website: "For assistance with tax
calculations, please contact the tax assessor for (name of taxing
unit) at (telephone number) or (e-mail address), or visit (Internet
website address) for more information."; or
(B) if the tax assessor for the taxing unit does
not maintain an Internet website: "For assistance with tax
calculations, please contact the tax assessor for (name of taxing
unit) at (telephone number) or (e-mail address)."
(b) The table must contain five rows and four columns.
(c) The first row must appear as follows:
(1) the first column of the first row must be left
blank;
(2) the second column of the first row must state the
year corresponding to the preceding tax year;
(3) the third column of the first row must state the
year corresponding to the current tax year; and
(4) the fourth column of the first row must be entitled
"Change".
(d) The second row must appear as follows:
(1) the first column of the second row must be entitled
"Total tax rate (per $100 of value)";
(2) the second column of the second row must state the
adopted tax rate for the preceding tax year;
(3) the third column of the second row must state the
proposed tax rate for the current tax year; and
(4) the fourth column of the second row must state the
nominal and percentage difference between the adopted tax rate for
the preceding tax year and the proposed tax rate for the current tax
year as follows: "(increase or decrease, as applicable) of
(nominal difference between tax rate stated in second column of
second row and tax rate stated in third column of second row) per
$100, or (percentage difference between tax rate stated in second
column of second row and tax rate stated in third column of second
row)%".
(e) The third row must appear as follows:
(1) the first column of the third row must be entitled
"Average homestead taxable value";
(2) the second column of the third row must state the
average taxable value of a residence homestead in the taxing unit
for the preceding tax year;
(3) the third column of the third row must state the
average taxable value of a residence homestead in the taxing unit
for the current tax year; and
(4) the fourth column of the third row must state the
percentage difference between the average taxable value of a
residence homestead in the taxing unit for the preceding tax year
and the average taxable value of a residence homestead in the taxing
unit for the current tax year as follows: "(increase or decrease,
as applicable) of (percentage difference between amount stated in
second column of third row and amount stated in third column of
third row)%".
(f) The fourth row must appear as follows:
(1) the first column of the fourth row must be entitled
"Tax on average homestead";
(2) the second column of the fourth row must state the
amount of taxes imposed by the taxing unit in the preceding tax year
on a residence homestead with a taxable value equal to the average
taxable value of a residence homestead in the taxing unit in the
preceding tax year;
(3) the third column of the fourth row must state the
amount of taxes that would be imposed by the taxing unit in the
current tax year on a residence homestead with a taxable value equal
to the average taxable value of a residence homestead in the taxing
unit in the current tax year if the taxing unit adopted the proposed
tax rate; and
(4) the fourth column of the fourth row must state the
nominal and percentage difference between the amount of taxes
imposed by the taxing unit in the preceding tax year on a residence
homestead with a taxable value equal to the average taxable value of
a residence homestead in the taxing unit in the preceding tax year
and the amount of taxes that would be imposed by the taxing unit in
the current tax year on a residence homestead with a taxable value
equal to the average taxable value of a residence homestead in the
taxing unit in the current tax year if the taxing unit adopted the
proposed tax rate, as follows: "(increase or decrease, as
applicable) of (nominal difference between amount stated in second
column of fourth row and amount stated in third column of fourth
row), or (percentage difference between amount stated in second
column of fourth row and amount stated in third column of fourth
row)%".
(g) The fifth row must appear as follows:
(1) the first column of the fifth row must be entitled
"Total tax levy on all properties";
(2) the second column of the fifth row must state the
amount equal to last year's levy;
(3) the third column of the fifth row must state the
amount computed by multiplying the proposed tax rate by the current
total value and dividing the product by 100; and
(4) the fourth column of the fifth row must state the
nominal and percentage difference between the total amount of taxes
imposed by the taxing unit in the preceding tax year and the amount
that would be imposed by the taxing unit in the current tax year if
the taxing unit adopted the proposed tax rate, as follows:
"(increase or decrease, as applicable) of (nominal difference
between amount stated in second column of fifth row and amount
stated in third column of fifth row), or (percentage difference
between amount stated in second column of fifth row and amount
stated in third column of fifth row)%".
(h) In calculating the average taxable value of a residence
homestead in the taxing unit for the preceding tax year and the
current tax year for purposes of Subsections (e) and (f), any
residence homestead exemption available only to disabled persons,
persons 65 years of age or older, or their surviving spouses must be
disregarded.
SECTION 36. Section 26.065(b), Tax Code, is amended to read
as follows:
(b) The [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 Internet website of 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 37. The heading to Section 26.07, Tax Code, is
amended to read as follows:
Sec. 26.07. ELECTION TO REDUCE TAX RATE OF SMALL TAXING UNIT
[REPEAL INCREASE].
SECTION 38. Sections 26.07(a) and (b), Tax Code, are
amended to read as follows:
(a) If the governing body of a small taxing unit [other than
a school district] adopts a tax rate that exceeds the taxing unit's
rollback tax rate calculated as provided by this chapter, the
qualified voters of the taxing unit by petition may require that an
election be held to determine whether or not to reduce the tax rate
adopted for the current year to the rollback tax rate calculated as
provided by this chapter.
(b) A petition is valid only if:
(1) it states that it is intended to require an
election in the taxing unit on the question of reducing the tax rate
for the current year;
(2) it is signed by a number of registered voters of
the taxing unit equal to at least 10[:
[(A) seven] percent of the number of registered
voters of the taxing unit who voted in [according to] the most
recent gubernatorial election [list of registered voters if the tax
rate adopted for the current tax year would impose taxes for
maintenance and operations in an amount of at least $5 million; or
[(B) 10 percent of the number of registered
voters of the taxing unit according to the most recent official list
of registered voters if the tax rate adopted for the current tax
year would impose taxes for maintenance and operations in an amount
of less than $5 million]; and
(3) it is submitted to the governing body on or before
the 90th day after the date on which the governing body adopted the
tax rate for the current year.
SECTION 39. The heading to Section 26.08, Tax Code, is
amended to read as follows:
Sec. 26.08. ELECTION TO APPROVE TAX RATE OF TAXING UNIT
OTHER THAN SMALL TAXING UNIT [RATIFY SCHOOL TAXES].
SECTION 40. Section 26.08, Tax Code, is amended by amending
Subsections (a), (b), (d), (d-1), (d-2), (e), (g), (h), (n), and (p)
and adding Subsection (r) to read as follows:
(a) If the governing body of a taxing unit other than a small
taxing unit [school district] adopts a tax rate that exceeds the
taxing unit's [district's] rollback tax rate, the registered voters
of the taxing unit [district] at an election held for that purpose
must determine whether to approve the adopted tax rate. When
increased expenditure of money by a taxing unit [school district]
is necessary to respond to a disaster, including a tornado,
hurricane, flood, or other calamity, but not including a drought,
that has impacted the taxing unit [a school district] and the
governor has requested federal disaster assistance for the area in
which the taxing unit [school district] is located, an election is
not required under this section to approve the tax rate adopted by
the governing body for the year following the year in which the
disaster occurs.
(b) The governing body shall order that the election be held
in the taxing unit [school district] on the uniform election date
prescribed by [a date not less than 30 or more than 90 days after the
day on which it adopted the tax rate.] Section 41.001, Election
Code, that occurs in November of the applicable tax year. The order
calling the election may not be issued later than August 15 [does
not apply to the election unless a date specified by that section
falls within the time permitted by this section]. At the election,
the ballots shall be prepared to permit voting for or against the
proposition: "Approving the ad valorem tax rate of $_____ per $100
valuation in (name of taxing unit [school district]) for the
current year, a rate that is $_____ higher per $100 valuation than
the [school district] rollback tax rate of (name of taxing unit),
for the purpose of (description of purpose of increase)." The
ballot proposition must include the adopted tax rate and the
difference between that rate and the rollback tax rate in the
appropriate places.
(d) If the proposition is not approved as provided by
Subsection (c), the governing body may not adopt a tax rate for the
taxing unit [school district] for the current year that exceeds the
taxing unit's [school district's] rollback tax rate.
(d-1) If, after tax bills for the taxing unit [school
district] have been mailed, a proposition to approve the taxing
unit's [school district's] adopted tax rate is not approved by the
voters of the taxing unit [district] at an election held under this
section, on subsequent adoption of a new tax rate by the governing
body of the taxing unit [district], the assessor for the taxing unit
[school] shall prepare and mail corrected tax bills. The assessor
shall include with each bill a brief explanation of the reason for
and effect of the corrected bill. The date on which the taxes
become delinquent for the year is extended by a number of days equal
to the number of days between the date the first tax bills were sent
and the date the corrected tax bills were sent.
(d-2) If a property owner pays taxes calculated using the
originally adopted tax rate of the taxing unit [school district]
and the proposition to approve the adopted tax rate is not approved
by the voters, the taxing unit [school district] shall refund the
difference between the amount of taxes paid and the amount due under
the subsequently adopted rate if the difference between the amount
of taxes paid and the amount due under the subsequent rate is $1 or
more. If the difference between the amount of taxes paid and the
amount due under the subsequent rate is less than $1, the taxing
unit [school district] shall refund the difference on request of
the taxpayer. An application for a refund of less than $1 must be
made within 90 days after the date the refund becomes due or the
taxpayer forfeits the right to the refund.
(e) For purposes of this section, local tax funds dedicated
to a junior college district under Section 45.105(e), Education
Code, shall be eliminated from the calculation of the tax rate
adopted by the governing body of a [the] school district. However,
the funds dedicated to the junior college district are subject to
Section 26.085.
(g) In a school district that received distributions from an
equalization tax imposed under former Chapter 18, Education Code,
the equivalent tax [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.
(h) For purposes of this section, increases in taxable
values and tax levies occurring within a reinvestment zone under
Chapter 311 (Tax Increment Financing Act), in which a school [the]
district is a participant, shall be eliminated from the calculation
of the tax rate adopted by the governing body of the school
district.
(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 equivalent [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 equivalent
[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 equivalent [effective] maintenance and operations tax
rate for that preceding tax year.
(r) Except as otherwise expressly provided by law, this
section does not apply to a tax imposed by a taxing unit if a
provision of an uncodified local or special law enacted by the 85th
Legislature, Regular Session, 2017, or by an earlier legislature
provides that former Section 26.07 does not apply to a tax imposed
by the taxing unit.
SECTION 41. Section 26.08(i), Tax Code, as effective
September 1, 2017, is amended to read as follows:
(i) For purposes of this section, the equivalent
[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 42. The heading to Section 26.16, Tax Code, is
amended to read as follows:
Sec. 26.16. POSTING OF TAX-RELATED INFORMATION [TAX RATES]
ON COUNTY'S INTERNET WEBSITE.
SECTION 43. Section 26.16, Tax Code, is amended by amending
Subsections (a) and (d) and adding Subsections (a-1), (d-1), and
(d-2) 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 equivalent [effective] tax rate;
(5) the equivalent [effective] maintenance and
operations rate; and
(6) the rollback tax rate.
(a-1) For purposes of Subsection (a), a reference to the
equivalent tax rate or the equivalent 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 equivalent [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 equivalent [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 small 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 taxing unit other than a small taxing unit
[school district], an election will automatically be held if the
unit [district] wishes to adopt a tax rate in excess of the unit's
[district's] rollback tax rate."
(d-1) In addition to posting the information described by
Subsection (a), the county assessor-collector shall post on the
Internet website of the county for each taxing unit all or part of
the territory of which is located in the county:
(1) the worksheets used by the designated officer or
employee of each taxing unit to calculate the equivalent and
rollback tax rates of the unit for the most recent five tax years
beginning with the 2018 tax year, as certified by the county
assessor-collector under Section 26.04(d-1); and
(2) the name and official contact information for each
member of the governing body of the taxing unit.
(d-2) Not later than August 1, the county
assessor-collector shall post on the website the worksheets
described by Subsection (d-1)(1) for the current tax year.
SECTION 44. Chapter 26, Tax Code, is amended by adding
Sections 26.17 and 26.18 to read as follows:
Sec. 26.17. REAL-TIME TAX RATE DATABASE. (a) The tax rate
officer of each appraisal district shall create and maintain a
database that:
(1) is identified by the name of the office of tax rate
notices, instead of the name of the appraisal district, and as the
"Real-time Tax Rate Database";
(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 be capable of generating, with respect
to each property listed on the appraisal roll for the appraisal
district, a real-time tax rate notice that includes:
(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 equivalent 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 equivalent 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;
(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; and
(14) for each taxing unit in which the property is
located, an e-mail address at which the taxing unit is capable of
receiving written comments regarding the proposed tax rate of the
taxing unit.
(c) The address of the Internet website at which the
information contained in the database may be found must be in the
form "(insert name of county in which appraisal district is
established)CountyTaxRates.gov" or a substantially similar form.
(d) 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.
(e) The officer or employee designated by the governing body
of each taxing unit to calculate the equivalent 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) incorporate into the database the completed 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).
(f) Each taxing unit shall establish an e-mail address for
the purpose described by Subsection (b)(14).
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 45. Sections 31.12(a) and (b), Tax Code, as amended
by S.B. 2242, Acts of the 85th Legislature, Regular Session, 2017,
are amended to read as follows:
(a) If a refund of a tax provided by Section 11.431(b),
26.07(g), 26.08(d-2), 26.15(f), 31.11, 31.111, or 31.112 is paid on
or before the 60th day after the date the liability for the refund
arises, no interest is due on the amount refunded. If not paid on or
before that 60th day, the amount of the tax to be refunded accrues
interest at a rate of one percent for each month or part of a month
that the refund is unpaid, beginning with the date on which the
liability for the refund arises.
(b) For purposes of this section, liability for a refund
arises:
(1) if the refund is required by Section 11.431(b), on
the date the chief appraiser notifies the collector for the unit of
the approval of the late homestead exemption;
(2) if the refund is required by Section 26.07(g), on
the date the results of the election to reduce the tax rate are
certified;
(3) if the refund is required by Section 26.08(d-2),
on the date the subsequent tax rate is adopted;
(4) if the refund is required by Section 26.15(f):
(A) for a correction to the tax roll made under
Section 26.15(b), on the date the change in the tax roll is
certified to the assessor for the taxing unit under Section 25.25;
or
(B) for a correction to the tax roll made under
Section 26.15(c), on the date the change in the tax roll is ordered
by the governing body of the taxing unit;
(5) [(4)] if the refund is required by Section 31.11,
on the date the auditor for the taxing unit determines that the
payment was erroneous or excessive or, if the amount of the refund
exceeds the applicable amount specified by Section 31.11(a), on the
date the governing body of the unit approves the refund;
(6) [(5)] if the refund is required by Section 31.111,
on the date the collector for the taxing unit determines that the
payment was erroneous; or
(7) [(6)] if the refund is required by Section 31.112,
on the date required by Section 31.112(d) or (e), as applicable.
SECTION 46. Section 33.08(b), Tax Code, is amended to read
as follows:
(b) The governing body of the taxing unit or appraisal
district, in the manner required by law for official action, may
provide that taxes that become delinquent on or after June 1 under
Section 26.07(f), 26.08(d-1), 26.15(e), 31.03, 31.031, 31.032,
31.04, or 42.42 incur an additional penalty to defray costs of
collection. The amount of the penalty may not exceed the amount of
the compensation specified in the applicable contract with an
attorney under Section 6.30 to be paid in connection with the
collection of the delinquent taxes.
SECTION 47. 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 48. Section 41.12(a), Tax Code, is amended to read
as follows:
(a) By July 5 [20], the appraisal review board shall:
(1) hear and determine all or substantially all timely
filed protests;
(2) determine all timely filed challenges;
(3) submit a list of its approved changes in the
records to the chief appraiser; and
(4) approve the records.
SECTION 49. Sections 41.44(a), (c), and (d), Tax Code, are
amended to read as follows:
(a) Except as provided by Subsections (b), [(b-1),] (c),
(c-1), and (c-2), to be entitled to a hearing and determination of a
protest, the property owner initiating the protest must file a
written notice of the protest with the appraisal review board
having authority to hear the matter protested:
(1) not later than the later of:
(A) [before] May 15; [1] or
(B) [not later than] the 30th day after the date
that notice to the property owner was delivered to the property
owner as provided by Section 25.19[, if the property is a
single-family residence that qualifies for an exemption under
Section 11.13, whichever is later];
(2) [before June 1 or not later than the 30th day after
the date that notice was delivered to the property owner as provided
by Section 25.19 in connection with any other property, whichever
is later;
[(3)] in the case of a protest of a change in the
appraisal records ordered as provided by Subchapter A of this
chapter or by Chapter 25, not later than the 30th day after the date
notice of the change is delivered to the property owner;
(3) [(4)] in the case of a determination that a change
in the use of land appraised under Subchapter C, D, E, or H, Chapter
23, has occurred, not later than the 30th day after the date the
notice of the determination is delivered to the property owner; or
(4) [(5)] in the case of a determination of
eligibility for a refund under Section 23.1243, not later than the
30th day after the date the notice of the determination is delivered
to the property owner.
(c) A property owner who files notice of a protest
authorized by Section 41.411 is entitled to a hearing and
determination of the protest if the property owner files the notice
prior to the date the taxes on the property to which the notice
applies become delinquent. An owner of land who files a notice of
protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing
and determination of the protest without regard to whether the
appraisal records are approved.
(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 included in a
classification 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 50. 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 51. Section 41.66, Tax Code, is amended by amending
Subsection (k) and adding Subsection (k-1) to read as follows:
(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.
SECTION 52. 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 53. Sections 41A.07(e), (f), and (g), Tax Code, as
effective September 1, 2017, are amended to read as follows:
(e) To be eligible for appointment as an arbitrator under
this section [Subsection (a)], the arbitrator must reside[:
[(1) in the county in which the property that is the
subject of the appeal is located; or
[(2)] in this state [if no available arbitrator on the
registry resides in that county].
(f) A person is not eligible for appointment as an
arbitrator under this section [Subsection (a)] if at any time
during the preceding five years, the person has:
(1) represented a person for compensation in a
proceeding under this title in the appraisal district in which the
property that is the subject of the appeal is located;
(2) served as an officer or employee of that appraisal
district; or
(3) served as a member of the appraisal review board
for that appraisal district.
(g) The comptroller may not appoint an arbitrator under this
section [Subsection (a)] if the comptroller determines that there
is good cause not to appoint the arbitrator, including information
or evidence indicating repeated bias or misconduct by the person
while acting as an arbitrator.
SECTION 54. Section 41A.07, Tax Code, is amended by adding
Subsection (h) to read as follows:
(h) In appointing an initial arbitrator under Subsection
(a), the comptroller shall appoint an arbitrator who resides in the
county in which the property that is the subject of the appeal is
located if there is an available arbitrator who resides in that
county. In appointing a substitute arbitrator under Subsection
(d), the comptroller is not required to appoint an arbitrator who
resides in the county in which the property that is the subject of
the appeal is located regardless of whether there is an available
arbitrator who resides in that county.
SECTION 55. 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 equivalent [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 56. Section 130.016(b), Education Code, is amended
to read as follows:
(b) If the board of trustees of an independent school
district that divests itself of the management, control, and
operation of a junior college district under this section or under
Section 130.017 [of this code] was authorized by [Subsection (e)
of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
this code] to dedicate a portion of its tax levy to the junior
college district before the divestment, the junior college district
may levy an ad valorem tax from and after the divestment. In the
first two years in which the junior college district levies an ad
valorem tax, the tax rate adopted by the governing body may not
exceed the rate that, if applied to the total taxable value
submitted to the governing body under Section 26.04, Tax Code,
would impose an amount equal to the amount of taxes of the school
district dedicated to the junior college under [Subsection (e) of]
Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
in the last dedication before the divestment. In subsequent years,
the tax rate of the junior college district is subject to Section
26.07 or 26.08, Tax Code, as applicable.
SECTION 57. 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 58. Sections 281.124(d) and (e), Health and Safety
Code, are amended to read as follows:
(d) If a majority of the votes cast in the election favor the
proposition, the tax rate for the specified tax year is the rate
approved by the voters, and that rate is not subject to a rollback
election under Section 26.07 or 26.08, Tax Code. The board shall
adopt the tax rate as provided by Chapter 26, Tax Code, as
applicable.
(e) If the proposition is not approved as provided by
Subsection (c), the board may not adopt a tax rate for the district
for the specified tax year that exceeds the rate that was not
approved, and Section 26.07 or 26.08, Tax Code, as applicable,
applies to the adopted rate if that rate exceeds the district's
rollback tax rate.
SECTION 59. 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 equivalent [effective] tax rate;
(C) the equivalent [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 60. 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 equivalent [effective] tax rate;
(C) the equivalent [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 61. 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 equivalent [effective] tax rate;
(C) the equivalent [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 62. 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 equivalent [effective] tax rate;
(C) the equivalent [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 63. Section 1122.2522, Special District Local Laws
Code, is amended by amending Subsection (a) and adding Subsection
(a-1) to read as follows:
(a) If in any year the board adopts a tax rate that exceeds
the rollback tax rate calculated as provided by Chapter 26, Tax
Code, and the district is a small taxing unit as defined by Section
26.012 of that code, the qualified voters of the district by
petition may require that an election be held to determine whether
or not to reduce the tax rate adopted by the board for that year to
the rollback tax rate.
(a-1) If in any year the board adopts a tax rate that exceeds
the rollback tax rate calculated as provided by Chapter 26, Tax
Code, and the district is not a small taxing unit as defined by
Section 26.012 of that code, an election must be held to determine
whether or not to approve the tax rate adopted by the board for that
year.
SECTION 64. Sections 3828.157 and 8876.152, Special
District Local Laws Code, are amended to read as follows:
Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. Sections 26.04, 26.05, [and] 26.07, and 26.08, Tax
Code, do not apply to a tax imposed under Section 3828.153 or
3828.156.
Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
(a) Sections 26.04, 26.05, 26.06, 26.061, [and] 26.07, and 26.08,
Tax Code, do not apply to a tax imposed by the district.
(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 65. Section 49.107(g), Water Code, is amended to
read as follows:
(g) Sections 26.04, 26.05, 26.061, [and] 26.07, and 26.08,
Tax Code, do not apply to a tax levied and collected under this
section or an ad valorem tax levied and collected for the payment of
the interest on and principal of bonds issued by a district.
SECTION 66. Section 49.108(f), Water Code, is amended to
read as follows:
(f) Sections 26.04, 26.05, 26.061, [and] 26.07, and 26.08,
Tax Code, do not apply to a tax levied and collected for payments
made under a contract approved in accordance with this section.
SECTION 67. 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 68. The following provisions are repealed:
(1) Sections 403.302(m-1) and (n), Government Code;
(2) Section 140.010, Local Government Code;
(3) Section 49.236, Water Code, as added by Chapter
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2003;
(4) Section 49.2361, Water Code;
(5) Section 1, H.B. 2228, Acts of the 85th
Legislature, Regular Session, 2017, which amended Section
11.4391(a), Tax Code;
(6) Section 3, H.B. 2228, Acts of the 85th
Legislature, Regular Session, 2017, which added Sections 22.23(c)
and (d), Tax Code; and
(7) Section 5, H.B. 2228, Acts of the 85th
Legislature, Regular Session, 2017, which amended Sections
41.44(a) and (c), Tax Code.
SECTION 69. Sections 5.05, 5.102, 5.13, and 23.01, Tax
Code, as amended by this Act, apply only to the appraisal of
property for ad valorem tax purposes for a tax year beginning on or
after January 1, 2018.
SECTION 70. (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, 2019.
SECTION 71. 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 72. 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 73. Sections 11.4391(a) and 22.23, Tax Code, as
amended by this Act, apply only to ad valorem taxes imposed for a
tax year beginning on or after January 1, 2018.
SECTION 74. (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 75. Not later than the 30th day after the effective
date of this section:
(1) the designated officer or employee of each taxing
unit shall submit to the county assessor-collector for each county
in which all or part of the territory of the taxing unit is located
the worksheets used by the designated officer or employee to
calculate the effective and rollback tax rates of the unit for the
2013-2017 tax years; and
(2) the county assessor-collector for each county
shall post the worksheets submitted to the county
assessor-collector under Subdivision (1) of this section on the
Internet website of the county.
SECTION 76. A taxing unit that does not own, operate, or
control an Internet website is not required to comply with Sections
26.05(b)(2) and 26.065(b), Tax Code, as amended by this Act, until
the first tax year in which the unit is required by law to maintain
or have access to an Internet website.
SECTION 77. Section 33.08(b), Tax Code, as amended by this
Act, applies only to taxes that become delinquent on or after
January 1, 2018. Taxes that become delinquent before that date are
governed by the law as it existed immediately before that date, and
that law is continued in effect for that purpose.
SECTION 78. 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.
SECTION 79. 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 80. Section 41.71, Tax Code, as amended by this Act,
applies only to a hearing on a protest under Chapter 41, Tax Code,
that is scheduled on or after January 1, 2018. A hearing on a
protest under Chapter 41, Tax Code, that is scheduled before
January 1, 2018, is governed by the law in effect on the date the
hearing was scheduled, and that law is continued in effect for that
purpose.
SECTION 81. Section 41A.07, Tax Code, as amended by this
Act, applies only to a request for binding arbitration received by
the comptroller from an appraisal district on or after January 1,
2018.
SECTION 82. (a) Except as otherwise provided by this Act,
this Act takes effect January 1, 2018.
(b) Section 75 of this Act takes effect immediately if this
Act receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, Section 75 of this Act takes effect on the 91st day after
the last day of the legislative session.
(c) 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.
(d) The following provisions take effect January 1, 2019:
(1) Sections 26.04(d-1), (d-2), (d-3), (e-2), (e-3),
(e-4), and (e-5), 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.