| 1 | 1 | | 86R9681 SMH-D |
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| 2 | 2 | | By: Dominguez H.B. No. 4043 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a temporary exemption from the requirements regarding |
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| 8 | 8 | | voter approval of a proposed ad valorem tax rate that exceeds a |
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| 9 | 9 | | taxing unit's rollback tax rate following a disaster. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 26.07, Tax Code, is amended by adding |
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| 12 | 12 | | Subsection (a-1) to read as follows: |
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| 13 | 13 | | (a-1) Notwithstanding the other provisions of this section, |
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| 14 | 14 | | the governing body of a taxing unit may adopt a tax rate that |
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| 15 | 15 | | exceeds the rollback tax rate calculated as provided by this |
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| 16 | 16 | | chapter without being required to hold an election under this |
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| 17 | 17 | | section if any part of the taxing unit is located in an area |
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| 18 | 18 | | declared a disaster area during the 2017 tax year or a subsequent |
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| 19 | 19 | | tax year by the governor or by the president of the United States. |
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| 20 | 20 | | This subsection applies to the tax rate adopted by the governing |
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| 21 | 21 | | body of a taxing unit for the tax year in which the disaster is |
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| 22 | 22 | | declared and for the following 10 tax years. |
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| 23 | 23 | | SECTION 2. Section 26.08, Tax Code, is amended by amending |
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| 24 | 24 | | Subsection (a) and adding Subsection (a-1) to read as follows: |
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| 25 | 25 | | (a) If the governing body of a school district adopts a tax |
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| 26 | 26 | | rate that exceeds the district's rollback tax rate, the registered |
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| 27 | 27 | | voters of the district at an election held for that purpose must |
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| 28 | 28 | | determine whether to approve the adopted tax rate. [When increased |
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| 29 | 29 | | expenditure of money by a school district is necessary to respond to |
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| 30 | 30 | | a disaster, including a tornado, hurricane, flood, or other |
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| 31 | 31 | | calamity, but not including a drought, that has impacted a school |
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| 32 | 32 | | district and the governor has requested federal disaster assistance |
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| 33 | 33 | | for the area in which the school district is located, an election is |
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| 34 | 34 | | not required under this section to approve the tax rate adopted by |
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| 35 | 35 | | the governing body for the year following the year in which the |
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| 36 | 36 | | disaster occurs.] |
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| 37 | 37 | | (a-1) Notwithstanding the other provisions of this section, |
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| 38 | 38 | | the governing body of a school district may adopt a tax rate that |
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| 39 | 39 | | exceeds the rollback tax rate calculated as provided by this |
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| 40 | 40 | | section without being required to hold an election under this |
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| 41 | 41 | | section if any part of the school district is located in an area |
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| 42 | 42 | | declared a disaster area during the 2017 tax year or a subsequent |
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| 43 | 43 | | tax year by the governor or by the president of the United States. |
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| 44 | 44 | | This subsection applies to the tax rate adopted by the governing |
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| 45 | 45 | | body of a school district for the tax year in which the disaster is |
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| 46 | 46 | | declared and for the following 10 tax years. |
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| 47 | 47 | | SECTION 3. Section 49.236, Water Code, as added by Chapter |
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| 48 | 48 | | 335 (S.B. 392), Acts of the 78th Legislature, Regular Session, |
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| 49 | 49 | | 2003, is amended by adding Subsection (e) to read as follows: |
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| 50 | 50 | | (e) Notwithstanding the other provisions of this section, |
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| 51 | 51 | | the governing body of a district may adopt a tax rate that exceeds |
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| 52 | 52 | | the combined debt service, operation and maintenance, and contract |
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| 53 | 53 | | tax rate that would impose more than 1.08 times the amount of tax |
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| 54 | 54 | | imposed by the district in the preceding year on a residence |
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| 55 | 55 | | homestead appraised at the average appraised value of a residence |
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| 56 | 56 | | homestead in the district in that year, disregarding any homestead |
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| 57 | 57 | | exemption available only to disabled persons or persons 65 years of |
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| 58 | 58 | | age or older, without being required to hold an election under this |
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| 59 | 59 | | section if any part of the district is located in an area declared a |
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| 60 | 60 | | disaster area during the 2017 tax year or a subsequent tax year by |
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| 61 | 61 | | the governor or by the president of the United States. This |
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| 62 | 62 | | subsection applies to the tax rate adopted by the governing body of |
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| 63 | 63 | | a district for the tax year in which the disaster is declared and |
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| 64 | 64 | | for the following 10 tax years. |
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| 65 | 65 | | SECTION 4. The changes in law made by this Act apply to the |
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| 66 | 66 | | ad valorem tax rate of a taxing unit beginning with the 2020 tax |
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| 67 | 67 | | year. |
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| 68 | 68 | | SECTION 5. This Act takes effect January 1, 2020. |
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