Texas 2019 - 86th Regular

Texas House Bill HB470 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R4288 SMH-F
2	2	By: Paul H.B. No. 470
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the calculation of the ad valorem rollback tax rate of a
8	8	taxing unit and voter approval of a proposed tax rate that exceeds
9	9	the rollback tax rate.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 26.012, Tax Code, is amended by adding
12	12	Subdivision (18) to read as follows:
13	13	(18) "Small taxing unit" means a taxing unit, other
14	14	than a school district, with a population of less than 40,000.
15	15	SECTION 2. Section 26.04, Tax Code, is amended by amending
16	16	Subsection (c) and adding Subsection (c-1) to read as follows:
17	17	(c) An officer or employee designated by the governing body
18	18	shall calculate the effective tax rate and the rollback tax rate for
19	19	the taxing unit, where:
20	20	(1) "Effective tax rate" means a rate expressed in
21	21	dollars per $100 of taxable value calculated according to the
22	22	following formula:
23	23	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
24	24	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
25	25	; and
26	26	(2) "Rollback tax rate" means a rate expressed in
27	27	dollars per $100 of taxable value calculated according to the
28	28	following applicable formula:
29	29	(A) for a small taxing unit:
30	30	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
31	31	OPERATIONS RATE x 1.08) + CURRENT DEBT RATE
32	32	; or
33	33	(B) for a taxing unit other than a small taxing
34	34	unit:
35	35	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
36	36	OPERATIONS RATE x 1.04) + CURRENT DEBT RATE
37	37	(c-1) Notwithstanding any other provision of this section,
38	38	the governing body of a taxing unit other than a small taxing unit
39	39	may direct the designated officer or employee to calculate the
40	40	rollback tax rate of the taxing unit according to the formula
41	41	applicable to a small taxing unit if any part of the taxing unit is
42	42	located in an area declared a disaster area during the current tax
43	43	year by the governor or by the president of the United States.
44	44	SECTION 3. Section 26.041, Tax Code, is amended by amending
45	45	Subsections (a), (b), and (c) and adding Subsection (c-1) to read as
46	46	follows:
47	47	(a) In the first year in which an additional sales and use
48	48	tax is required to be collected, the effective tax rate and rollback
49	49	tax rate for the taxing unit are calculated according to the
50	50	following formulas:
51	51	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
52	52	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
53	53	SALES TAX GAIN RATE
54	54	[and]
55	55	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = (EFFECTIVE
56	56	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
57	57	RATE - SALES TAX GAIN RATE
58	58	and
59	59	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
60	60	TAXING UNIT = (EFFECTIVE MAINTENANCE AND OPERATIONS
61	61	RATE x 1.04) + CURRENT DEBT RATE - SALES TAX GAIN RATE
62	62	where "sales tax gain rate" means a number expressed in dollars per
63	63	$100 of taxable value, calculated by dividing the revenue that will
64	64	be generated by the additional sales and use tax in the following
65	65	year as calculated under Subsection (d) [of this section] by the
66	66	current total value.
67	67	(b) Except as provided by Subsections (a) and (c) [of this
68	68	section], in a year in which a taxing unit imposes an additional
69	69	sales and use tax, the rollback tax rate for the taxing unit is
70	70	calculated according to the following applicable formula,
71	71	regardless of whether the taxing unit levied a property tax in the
72	72	preceding year:
73	73	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
74	74	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
75	75	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT
76	76	DEBT RATE - SALES TAX REVENUE RATE)
77	77	or
78	78	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
79	79	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
80	80	EXPENSE x 1.04) / (CURRENT TOTAL VALUE - NEW PROPERTY
81	81	VALUE)] + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)
82	82	where "last year's maintenance and operations expense" means the
83	83	amount spent for maintenance and operations from property tax and
84	84	additional sales and use tax revenues in the preceding year, and
85	85	"sales tax revenue rate" means a number expressed in dollars per
86	86	$100 of taxable value, calculated by dividing the revenue that will
87	87	be generated by the additional sales and use tax in the current year
88	88	as calculated under Subsection (d) [of this section] by the current
89	89	total value.
90	90	(c) In a year in which a taxing unit that has been imposing
91	91	an additional sales and use tax ceases to impose an additional sales
92	92	and use tax, the effective tax rate and rollback tax rate for the
93	93	taxing unit are calculated according to the following formulas:
94	94	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
95	95	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
96	96	SALES TAX LOSS RATE
97	97	[and]
98	98	ROLLBACK TAX RATE FOR SMALL TAXING UNIT = [(LAST YEAR'S
99	99	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
100	100	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT
101	101	DEBT RATE
102	102	and
103	103	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
104	104	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
105	105	EXPENSE x 1.04) / (CURRENT TOTAL VALUE - NEW PROPERTY
106	106	VALUE)] + CURRENT DEBT RATE
107	107	where "sales tax loss rate" means a number expressed in dollars per
108	108	$100 of taxable value, calculated by dividing the amount of sales
109	109	and use tax revenue generated in the last four quarters for which
110	110	the information is available by the current total value and "last
111	111	year's maintenance and operations expense" means the amount spent
112	112	for maintenance and operations from property tax and additional
113	113	sales and use tax revenues in the preceding year.
114	114	(c-1) Notwithstanding any other provision of this section,
115	115	the governing body of a taxing unit other than a small taxing unit
116	116	may direct the designated officer or employee to calculate the
117	117	rollback tax rate of the taxing unit according to the formula
118	118	applicable to a small taxing unit if any part of the taxing unit is
119	119	located in an area declared a disaster area during the current tax
120	120	year by the governor or by the president of the United States.
121	121	SECTION 4. The heading to Section 26.043, Tax Code, is
122	122	amended to read as follows:
123	123	Sec. 26.043. ROLLBACK AND EFFECTIVE TAX RATES [RATE] IN
124	124	CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
125	125	SECTION 5. The heading to Section 26.07, Tax Code, is
126	126	amended to read as follows:
127	127	Sec. 26.07. ELECTION TO REDUCE TAX RATE OF SMALL TAXING UNIT
128	128	[REPEAL INCREASE].
129	129	SECTION 6. Section 26.07(a), Tax Code, is amended to read as
130	130	follows:
131	131	(a) If the governing body of a small taxing unit [other than
132	132	a school district] adopts a tax rate that exceeds the taxing unit's
133	133	rollback tax rate calculated as provided by this chapter, the
134	134	qualified voters of the taxing unit by petition may require that an
135	135	election be held to determine whether or not to reduce the tax rate
136	136	adopted for the current year to the rollback tax rate calculated as
137	137	provided by this chapter.
138	138	SECTION 7. The heading to Section 26.08, Tax Code, is
139	139	amended to read as follows:
140	140	Sec. 26.08. ELECTION TO APPROVE TAX RATE OF TAXING UNIT
141	141	OTHER THAN SMALL TAXING UNIT [RATIFY SCHOOL TAXES].
142	142	SECTION 8. Section 26.08, Tax Code, is amended by amending
143	143	Subsections (a), (b), (d), (d-1), (d-2), (e), and (h) and adding
144	144	Subsection (r) to read as follows:
145	145	(a) If the governing body of a taxing unit other than a small
146	146	taxing unit [school district] adopts a tax rate that exceeds the
147	147	taxing unit's [district's] rollback tax rate, the registered voters
148	148	of the taxing unit [district] at an election held for that purpose
149	149	must determine whether to approve the adopted tax rate. When
150	150	increased expenditure of money by a taxing unit [school district]
151	151	is necessary to respond to a disaster, including a tornado,
152	152	hurricane, flood, or other calamity, but not including a drought,
153	153	that has impacted the taxing unit [a school district] and the
154	154	governor has requested federal disaster assistance for the area in
155	155	which the taxing unit [school district] is located, an election is
156	156	not required under this section to approve the tax rate adopted by
157	157	the governing body for the year following the year in which the
158	158	disaster occurs.
159	159	(b) The governing body shall order that the election be held
160	160	in the taxing unit [school district] on a date not less than 30 or
161	161	more than 90 days after the day on which it adopted the tax rate.
162	162	Section 41.001, Election Code, does not apply to the election
163	163	unless a date specified by that section falls within the time
164	164	permitted by this section. At the election, the ballots shall be
165	165	prepared to permit voting for or against the proposition:
166	166	"Approving the ad valorem tax rate of $_____ per $100 valuation in
167	167	(name of taxing unit [school district]) for the current year, a rate
168	168	that is $_____ higher per $100 valuation than the [school district]
169	169	rollback tax rate of (name of taxing unit), for the purpose of
170	170	(description of purpose of increase)." The ballot proposition must
171	171	include the adopted tax rate and the difference between that rate
172	172	and the rollback tax rate in the appropriate places.
173	173	(d) If the proposition is not approved as provided by
174	174	Subsection (c), the governing body may not adopt a tax rate for the
175	175	taxing unit [school district] for the current year that exceeds the
176	176	taxing unit's [school district's] rollback tax rate.
177	177	(d-1) If, after tax bills for the taxing unit [school
178	178	district] have been mailed, a proposition to approve the taxing
179	179	unit's [school district's] adopted tax rate is not approved by the
180	180	voters of the taxing unit [district] at an election held under this
181	181	section, on subsequent adoption of a new tax rate by the governing
182	182	body of the taxing unit [district], the assessor for the taxing unit
183	183	[school] shall prepare and mail corrected tax bills. The assessor
184	184	shall include with each bill a brief explanation of the reason for
185	185	and effect of the corrected bill. The date on which the taxes
186	186	become delinquent for the year is extended by a number of days equal
187	187	to the number of days between the date the first tax bills were sent
188	188	and the date the corrected tax bills were sent.
189	189	(d-2) If a property owner pays taxes calculated using the
190	190	originally adopted tax rate of the taxing unit [school district]
191	191	and the proposition to approve the adopted tax rate is not approved
192	192	by the voters, the taxing unit [school district] shall refund the
193	193	difference between the amount of taxes paid and the amount due under
194	194	the subsequently adopted rate if the difference between the amount
195	195	of taxes paid and the amount due under the subsequent rate is $1 or
196	196	more. If the difference between the amount of taxes paid and the
197	197	amount due under the subsequent rate is less than $1, the taxing
198	198	unit [school district] shall refund the difference on request of
199	199	the taxpayer. An application for a refund of less than $1 must be
200	200	made within 90 days after the date the refund becomes due or the
201	201	taxpayer forfeits the right to the refund.
202	202	(e) For purposes of this section, local tax funds dedicated
203	203	to a junior college district under Section 45.105(e), Education
204	204	Code, shall be eliminated from the calculation of the tax rate
205	205	adopted by the governing body of a [the] school district. However,
206	206	the funds dedicated to the junior college district are subject to
207	207	Section 26.085.
208	208	(h) For purposes of this section, increases in taxable
209	209	values and tax levies occurring within a reinvestment zone
210	210	designated under Chapter 311 [(Tax Increment Financing Act),] in
211	211	which a school [the] district is a participant[,] shall be
212	212	eliminated from the calculation of the tax rate adopted by the
213	213	governing body of the school district.
214	214	(r) Except as otherwise expressly provided by law, this
215	215	section does not apply to a tax imposed by a taxing unit if a
216	216	provision of an uncodified local or special law enacted by the 86th
217	217	Legislature, Regular Session, 2019, or by an earlier legislature
218	218	provides that Section 26.07 does not apply to a tax imposed by the
219	219	taxing unit.
220	220	SECTION 9. Section 26.16(d), Tax Code, is amended to read as
221	221	follows:
222	222	(d) The county assessor-collector shall post immediately
223	223	below the table prescribed by Subsection (c) the following
224	224	statement:
225	225	"The county is providing this table of property tax rate
226	226	information as a service to the residents of the county. Each
227	227	individual taxing unit is responsible for calculating the property
228	228	tax rates listed in this table pertaining to that taxing unit and
229	229	providing that information to the county.
230	230	"The adopted tax rate is the tax rate adopted by the governing
231	231	body of a taxing unit.
232	232	"The maintenance and operations rate is the component of the
233	233	adopted tax rate of a taxing unit that will impose the amount of
234	234	taxes needed to fund maintenance and operation expenditures of the
235	235	taxing unit for the following year.
236	236	"The debt rate is the component of the adopted tax rate of a
237	237	taxing unit that will impose the amount of taxes needed to fund the
238	238	taxing unit's debt service for the following year.
239	239	"The effective tax rate is the tax rate that would generate
240	240	the same amount of revenue in the current tax year as was generated
241	241	by a taxing unit's adopted tax rate in the preceding tax year from
242	242	property that is taxable in both the current tax year and the
243	243	preceding tax year.
244	244	"The effective maintenance and operations rate is the tax
245	245	rate that would generate the same amount of revenue for maintenance
246	246	and operations in the current tax year as was generated by a taxing
247	247	unit's maintenance and operations rate in the preceding tax year
248	248	from property that is taxable in both the current tax year and the
249	249	preceding tax year.
250	250	"The rollback tax rate is the highest tax rate a taxing unit
251	251	may adopt before requiring voter approval at an election. In the
252	252	case of a small taxing unit [other than a school district], the
253	253	voters by petition may require that a rollback election be held if
254	254	the taxing unit adopts a tax rate in excess of the taxing unit's
255	255	rollback tax rate. In the case of a taxing unit other than a small
256	256	taxing unit [school district], an election will automatically be
257	257	held if the taxing unit [district] wishes to adopt a tax rate in
258	258	excess of the taxing unit's [district's] rollback tax rate."
259	259	SECTION 10. Sections 31.12(a) and (b), Tax Code, are
260	260	amended to read as follows:
261	261	(a) If a refund of a tax provided by Section 11.431(b),
262	262	26.07(g), 26.08(d-2), 26.15(f), 31.11, 31.111, or 31.112 is paid on
263	263	or before the 60th day after the date the liability for the refund
264	264	arises, no interest is due on the amount refunded. If not paid on or
265	265	before that 60th day, the amount of the tax to be refunded accrues
266	266	interest at a rate of one percent for each month or part of a month
267	267	that the refund is unpaid, beginning with the date on which the
268	268	liability for the refund arises.
269	269	(b) For purposes of this section, liability for a refund
270	270	arises:
271	271	(1) if the refund is required by Section 11.431(b), on
272	272	the date the chief appraiser notifies the collector for the taxing
273	273	unit of the approval of the late homestead exemption;
274	274	(2) if the refund is required by Section 26.07(g), on
275	275	the date the results of the election to reduce the tax rate are
276	276	certified;
277	277	(3) if the refund is required by Section 26.08(d-2),
278	278	on the date the subsequent tax rate is adopted;
279	279	(4) if the refund is required by Section 26.15(f):
280	280	(A) for a correction to the tax roll made under
281	281	Section 26.15(b), on the date the change in the tax roll is
282	282	certified to the assessor for the taxing unit under Section 25.25;
283	283	or
284	284	(B) for a correction to the tax roll made under
285	285	Section 26.15(c), on the date the change in the tax roll is ordered
286	286	by the governing body of the taxing unit;
287	287	(5) [(4)] if the refund is required by Section 31.11,
288	288	on the date the auditor for the taxing unit determines that the
289	289	payment was erroneous or excessive or, if the amount of the refund
290	290	exceeds the applicable amount specified by Section 31.11(a), on the
291	291	date the governing body of the taxing unit approves the refund;
292	292	(6) [(5)] if the refund is required by Section 31.111,
293	293	on the date the collector for the taxing unit determines that the
294	294	payment was erroneous; or
295	295	(7) [(6)] if the refund is required by Section 31.112,
296	296	on the date required by Section 31.112(d) or (e), as applicable.
297	297	SECTION 11. Section 33.08(b), Tax Code, is amended to read
298	298	as follows:
299	299	(b) The governing body of the taxing unit or appraisal
300	300	district, in the manner required by law for official action, may
301	301	provide that taxes that become delinquent on or after June 1 under
302	302	Section 26.07(f), 26.08(d-1), 26.15(e), 31.03, 31.031, 31.032,
303	303	31.04, or 42.42 incur an additional penalty to defray costs of
304	304	collection. The amount of the penalty may not exceed the amount of
305	305	the compensation specified in the applicable contract with an
306	306	attorney under Section 6.30 to be paid in connection with the
307	307	collection of the delinquent taxes.
308	308	SECTION 12. Section 130.016(b), Education Code, is amended
309	309	to read as follows:
310	310	(b) If the board of trustees of an independent school
311	311	district that divests itself of the management, control, and
312	312	operation of a junior college district under this section or under
313	313	Section 130.017 [of this code] was authorized by [Subsection (e)
314	314	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
315	315	this code] to dedicate a portion of its tax levy to the junior
316	316	college district before the divestment, the junior college district
317	317	may levy an ad valorem tax from and after the divestment. In the
318	318	first two years in which the junior college district levies an ad
319	319	valorem tax, the tax rate adopted by the governing body may not
320	320	exceed the rate that, if applied to the total taxable value
321	321	submitted to the governing body under Section 26.04, Tax Code,
322	322	would impose an amount equal to the amount of taxes of the school
323	323	district dedicated to the junior college under [Subsection (e) of]
324	324	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
325	325	in the last dedication before the divestment. In subsequent years,
326	326	the tax rate of the junior college district is subject to Section
327	327	26.07 or 26.08, Tax Code, as applicable.
328	328	SECTION 13. Sections 281.124(d) and (e), Health and Safety
329	329	Code, are amended to read as follows:
330	330	(d) If a majority of the votes cast in the election favor the
331	331	proposition, the tax rate for the specified tax year is the rate
332	332	approved by the voters, and that rate is not subject to a rollback
333	333	election under Section 26.07 or 26.08, Tax Code. The board shall
334	334	adopt the tax rate as provided by Chapter 26, Tax Code, as
335	335	applicable.
336	336	(e) If the proposition is not approved as provided by
337	337	Subsection (d) [(c)], the board may not adopt a tax rate for the
338	338	district for the specified tax year that exceeds the rate that was
339	339	not approved, and Section 26.07 or 26.08, Tax Code, as applicable,
340	340	applies to the adopted rate if that rate exceeds the district's
341	341	rollback tax rate.
342	342	SECTION 14. Section 140.010, Local Government Code, is
343	343	amended by amending Subsections (a), (e), (f), and (g) and adding
344	344	Subsection (e-1) to read as follows:
345	345	(a) In this section:
346	346	(1) "Effective[, "effective] tax rate" and "rollback
347	347	tax rate" mean the effective tax rate and rollback tax rate of a
348	348	county or municipality, as applicable, as calculated under Chapter
349	349	26, Tax Code.
350	350	(2) "Small taxing unit" has the meaning assigned by
351	351	Section 26.012, Tax Code.
352	352	(e) A county or municipality that is a small taxing unit and
353	353	that proposes a property tax rate that exceeds the lower of the
354	354	effective tax rate or the rollback tax rate shall provide the
355	355	following notice:
356	356	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
357	357	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
358	358	"A tax rate of $_____ per $100 valuation has been proposed for
359	359	adoption by the governing body of (insert name of county or
360	360	municipality). This rate exceeds the lower of the effective or
361	361	rollback tax rate, and state law requires that two public hearings
362	362	be held by the governing body before adopting the proposed tax rate.
363	363	The governing body of (insert name of county or municipality)
364	364	proposes to use revenue attributable to the tax rate increase for
365	365	the purpose of (description of purpose of increase).
366	366	PROPOSED TAX RATE$______ per $100
367	367	PRECEDING YEAR'S TAX RATE$______ per $100
368	368	EFFECTIVE TAX RATE$______ per $100
369	369	ROLLBACK TAX RATE$______ per $100
370	370	"The effective tax rate is the total tax rate needed to raise the
371	371	same amount of property tax revenue for (insert name of county or
372	372	municipality) from the same properties in both the (insert
373	373	preceding tax year) tax year and the (insert current tax year) tax
374	374	year.
375	375	"The rollback tax rate is the highest tax rate that (insert name of
376	376	county or municipality) may adopt before the voters are entitled to
377	377	petition for an election to limit the rate that may be approved to
378	378	the rollback tax rate.
379	379	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
380	380	FOLLOWS:
381	381	property tax amount = (rate) x (taxable value of your property) /
382	382	100
383	383	"For assistance or detailed information about tax calculations,
384	384	please contact:
385	385	(insert name of county or municipal tax assessor-collector)
386	386	(insert name of county or municipality) tax
387	387	assessor-collector
388	388	(insert address)
389	389	(insert telephone number)
390	390	(insert e-mail address)
391	391	(insert Internet website address, if applicable)
392	392	"You are urged to attend and express your views at the following
393	393	public hearings on the proposed tax rate:
394	394	First Hearing: (insert date and time) at (insert location of
395	395	meeting).
396	396	Second Hearing: (insert date and time) at (insert location
397	397	of meeting)."
398	398	(e-1) A county or municipality that is not a small taxing
399	399	unit and that proposes a property tax rate that exceeds the lower of
400	400	the effective tax rate or the rollback tax rate shall provide the
401	401	following notice:
402	402	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
403	403	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
404	404	"A tax rate of $_____ per $100 valuation has been proposed for
405	405	adoption by the governing body of (insert name of county or
406	406	municipality). This rate exceeds the lower of the effective or
407	407	rollback tax rate, and state law requires that two public hearings
408	408	be held by the governing body before adopting the proposed tax rate.
409	409	The governing body of (insert name of county or municipality)
410	410	proposes to use revenue attributable to the tax rate increase for
411	411	the purpose of (description of purpose of increase).
412	412	PROPOSED TAX RATE$______ per $100
413	413	PRECEDING YEAR'S TAX RATE$______ per $100
414	414	EFFECTIVE TAX RATE$______ per $100
415	415	ROLLBACK TAX RATE$______ per $100
416	416	"The effective tax rate is the total tax rate needed to raise the
417	417	same amount of property tax revenue for (insert name of county or
418	418	municipality) from the same properties in both the (insert
419	419	preceding tax year) tax year and the (insert current tax year) tax
420	420	year.
421	421	"The rollback tax rate is the highest tax rate that (insert name of
422	422	county or municipality) may adopt before the (insert "county" or
423	423	"city") is required to hold an election to limit the rate that may
424	424	be approved to the rollback tax rate.
425	425	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
426	426	FOLLOWS:
427	427	property tax amount = (rate) x (taxable value of your property) /
428	428	100
429	429	"For assistance or detailed information about tax calculations,
430	430	please contact:
431	431	(insert name of county or municipal tax assessor-collector)
432	432	(insert name of county or municipality) tax
433	433	assessor-collector
434	434	(insert address)
435	435	(insert telephone number)
436	436	(insert e-mail address)
437	437	(insert Internet website address, if applicable)
438	438	"You are urged to attend and express your views at the following
439	439	public hearings on the proposed tax rate:
440	440	First Hearing: (insert date and time) at (insert location of
441	441	meeting).
442	442	Second Hearing: (insert date and time) at (insert location
443	443	of meeting)."
444	444	(f) A county or municipality shall:
445	445	(1) provide the notice required by Subsection (d),
446	446	[or] (e), or (e-1), as applicable, not later than the later of
447	447	September 1 or the 30th day after the first date that the taxing
448	448	unit has received each applicable certified appraisal roll by:
449	449	(A) publishing the notice in a newspaper having
450	450	general circulation in:
451	451	(i) the county, in the case of notice
452	452	published by a county; or
453	453	(ii) the county in which the municipality
454	454	is located or primarily located, in the case of notice published by
455	455	a municipality; or
456	456	(B) mailing the notice to each property owner in:
457	457	(i) the county, in the case of notice
458	458	provided by a county; or
459	459	(ii) the municipality, in the case of
460	460	notice provided by a municipality; and
461	461	(2) post the notice on the Internet website of the
462	462	county or municipality, if applicable, beginning not later than the
463	463	later of September 1 or the 30th day after the first date that the
464	464	taxing unit has received each applicable certified appraisal roll
465	465	and continuing until the county or municipality adopts a tax rate.
466	466	(g) If the notice required by Subsection (d), [or] (e), or
467	467	(e-1) is published in a newspaper:
468	468	(1) the notice may not be smaller than one-quarter
469	469	page of a standard-size or a tabloid-size newspaper; and
470	470	(2) the headline on the notice must be in 24-point or
471	471	larger type.
472	472	SECTION 15. Section 1122.2522, Special District Local Laws
473	473	Code, is amended by amending Subsection (a) and adding Subsection
474	474	(a-1) to read as follows:
475	475	(a) If in any year the board adopts a tax rate that exceeds
476	476	the rollback tax rate calculated as provided by Chapter 26, Tax
477	477	Code, and the district is a small taxing unit as defined by Section
478	478	26.012 of that code, the qualified voters of the district by
479	479	petition may require that an election be held to determine whether
480	480	or not to reduce the tax rate adopted by the board for that year to
481	481	the rollback tax rate.
482	482	(a-1) If in any year the board adopts a tax rate that exceeds
483	483	the rollback tax rate calculated as provided by Chapter 26, Tax
484	484	Code, and the district is not a small taxing unit as defined by
485	485	Section 26.012 of that code, an election must be held to determine
486	486	whether or not to approve the tax rate adopted by the board for that
487	487	year.
488	488	SECTION 16. Sections 3828.157 and 8876.152, Special
489	489	District Local Laws Code, are amended to read as follows:
490	490	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
491	491	PROVISIONS. Sections 26.04, 26.05, [and] 26.07, and 26.08, Tax
492	492	Code, do not apply to a tax imposed under Section 3828.153 or
493	493	3828.156.
494	494	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
495	495	(a) Sections 26.04, 26.05, 26.06, [and] 26.07, and 26.08, Tax Code,
496	496	do not apply to a tax imposed by the district.
497	497	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
498	498	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
499	499	78th Legislature, Regular Session, 2003, applies] to the district.
500	500	SECTION 17. Section 49.107(g), Water Code, is amended to
501	501	read as follows:
502	502	(g) Sections 26.04, 26.05, [and] 26.07, and 26.08, Tax Code,
503	503	do not apply to a tax levied and collected under this section or an
504	504	ad valorem tax levied and collected for the payment of the interest
505	505	on and principal of bonds issued by a district.
506	506	SECTION 18. Section 49.108(f), Water Code, is amended to
507	507	read as follows:
508	508	(f) Sections 26.04, 26.05, [and] 26.07, and 26.08, Tax Code,
509	509	do not apply to a tax levied and collected for payments made under a
510	510	contract approved in accordance with this section.
511	511	SECTION 19. Section 49.236, Water Code, as added by Chapter
512	512	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
513	513	2003, is amended by amending Subsections (a) and (d) and adding
514	514	Subsections (e), (f), (g), (h), (i), (j), (k), (l), and (m) to read
515	515	as follows:
516	516	(a) Before the board adopts an ad valorem tax rate for the
517	517	district for debt service, operation and maintenance purposes, or
518	518	contract purposes, the board shall give notice of each meeting of
519	519	the board at which the adoption of a tax rate will be considered.
520	520	The notice must:
521	521	(1) contain a statement in substantially the following
522	522	form:
523	523	"NOTICE OF PUBLIC HEARING ON TAX RATE
524	524	"The (name of the district) will hold a public hearing on a
525	525	proposed tax rate for the tax year (year of tax levy) on (date and
526	526	time) at (meeting place). Your individual taxes may increase or
527	527	decrease, depending on the change in the taxable value of your
528	528	property in relation to the change in taxable value of all other
529	529	property and the tax rate that is adopted.
530	530	"(Names of all board members and, if a vote was taken, an
531	531	indication of how each voted on the proposed tax rate and an
532	532	indication of any absences.)";
533	533	(2) contain the following information:
534	534	(A) the district's total adopted tax rate for the
535	535	preceding year and the proposed tax rate, expressed as an amount per
536	536	$100;
537	537	(B) the difference, expressed as an amount per
538	538	$100 and as a percent increase or decrease, as applicable, in the
539	539	proposed tax rate compared to the adopted tax rate for the preceding
540	540	year;
541	541	(C) the average appraised value of a residence
542	542	homestead in the district in the preceding year and in the current
543	543	year; the district's total homestead exemption, other than an
544	544	exemption available only to disabled persons or persons 65 years of
545	545	age or older, applicable to that appraised value in each of those
546	546	years; and the average taxable value of a residence homestead in
547	547	the district in each of those years, disregarding any homestead
548	548	exemption available only to disabled persons or persons 65 years of
549	549	age or older;
550	550	(D) the amount of tax that would have been
551	551	imposed by the district in the preceding year on a residence
552	552	homestead appraised at the average appraised value of a residence
553	553	homestead in that year, disregarding any homestead exemption
554	554	available only to disabled persons or persons 65 years of age or
555	555	older;
556	556	(E) the amount of tax that would be imposed by the
557	557	district in the current year on a residence homestead appraised at
558	558	the average appraised value of a residence homestead in that year,
559	559	disregarding any homestead exemption available only to disabled
560	560	persons or persons 65 years of age or older, if the proposed tax
561	561	rate is adopted; [and]
562	562	(F) the difference between the amounts of tax
563	563	calculated under Paragraphs (D) and (E), expressed in dollars and
564	564	cents and described as the annual percentage increase or decrease,
565	565	as applicable, in the tax to be imposed by the district on the
566	566	average residence homestead in the district in the current year if
567	567	the proposed tax rate is adopted; and
568	568	(G) if the proposed combined debt service,
569	569	operation and maintenance, and contract tax rate requires or
570	570	authorizes an election in the district to approve the tax rate, a
571	571	description of the purpose of the proposed tax increase; and
572	572	(3) contain a statement in substantially the following
573	573	form, as applicable:
574	574	(A) if the district is not a small taxing unit:
575	575	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
576	576	"If taxes on the average residence homestead increase by more
577	577	than four [eight] percent, [the qualified voters of the district by
578	578	petition may require that] an election must be held to determine
579	579	whether to approve [reduce] the [operation and maintenance] tax
580	580	rate [to the rollback tax rate] under Section 49.236(d), Water
581	581	Code."; or
582	582	(B) if the district is a small taxing unit:
583	583	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
584	584	"If taxes on the average residence homestead increase by more
585	585	than eight percent, the qualified voters of the district by
586	586	petition may require that an election be held to determine whether
587	587	to approve the tax rate under Section 49.236(e), Water Code."
588	588	(d) This subsection applies to a district only if the
589	589	district is not a small taxing unit. If the board [governing body]
590	590	of the [a] district adopts a combined debt service, operation and
591	591	maintenance, and contract tax rate that would impose more than 1.04
592	592	[1.08] times the amount of tax imposed by the district in the
593	593	preceding year on a residence homestead appraised at the average
594	594	appraised value of a residence homestead in the district in that
595	595	year, disregarding any homestead exemption available only to
596	596	disabled persons or persons 65 years of age or older, [the qualified
597	597	voters of the district by petition may require that] an election
598	598	must be held to determine whether [or not] to approve [reduce] the
599	599	tax rate adopted for the current year [to the rollback tax rate] in
600	600	accordance with the procedures provided by Sections 26.08(b), (c),
601	601	(d), (d-1), and (d-2) [26.07(b)-(g) and 26.081], Tax Code.
602	602	(e) This subsection and Subsections (f)-(i) apply to a
603	603	district only if the district is a small taxing unit. If the board
604	604	of the district adopts a combined debt service, operation and
605	605	maintenance, and contract tax rate that would impose more than 1.08
606	606	times the amount of tax imposed by the district in the preceding
607	607	year on a residence homestead appraised at the average appraised
608	608	value of a residence homestead in the district in that year,
609	609	disregarding any homestead exemption available only to disabled
610	610	persons or persons 65 years of age or older, the qualified voters of
611	611	the district by petition may require that an election be held to
612	612	determine whether to approve the tax rate adopted for the current
613	613	year in accordance with the procedures provided by Subsections
614	614	(f)-(i) of this section and Section 26.081, Tax Code.
615	615	(f) A petition under Subsection (e) is valid only if:
616	616	(1) it states that it is intended to require an
617	617	election in the district on the question of approving the tax rate
618	618	adopted for the current year;
619	619	(2) it is signed by a number of registered voters of
620	620	the district equal to at least:
621	621	(A) seven percent of the number of registered
622	622	voters of the district according to the most recent official list of
623	623	registered voters if the tax rate adopted for the current tax year
624	624	would impose taxes for operation and maintenance in an amount of at
625	625	least $5 million; or
626	626	(B) 10 percent of the number of registered voters
627	627	of the district according to the most recent official list of
628	628	registered voters if the tax rate adopted for the current tax year
629	629	would impose taxes for operation and maintenance in an amount of
630	630	less than $5 million; and
631	631	(3) it is submitted to the board on or before the 90th
632	632	day after the date on which the board adopted the tax rate for the
633	633	current year.
634	634	(g) Not later than the 20th day after the day a petition is
635	635	submitted, the board shall determine whether or not the petition is
636	636	valid and pass a resolution stating its finding. If the board fails
637	637	to act within the time allowed, the petition is treated as if it had
638	638	been found valid.
639	639	(h) If the board finds that the petition is valid (or fails
640	640	to act within the time allowed), it shall order that an election be
641	641	held in the district on a date not less than 30 or more than 90 days
642	642	after the last day on which it could have acted to approve or
643	643	disapprove the petition. A state law requiring local elections to
644	644	be held on a specified date does not apply to the election unless a
645	645	specified date falls within the time permitted by this subsection.
646	646	At the election, the ballots shall be prepared to permit voting for
647	647	or against the proposition: "Approving the ad valorem tax rate of
648	648	$____ per $100 valuation in (name of district) for the current year,
649	649	a rate that is $____ higher per $100 valuation than the district's
650	650	rollback tax rate, for the purpose of (description of purpose of
651	651	increase)." The ballot proposition must include the adopted tax
652	652	rate and the difference between that rate and the rollback tax rate
653	653	in the appropriate places.
654	654	(i) Sections 26.08(c), (d), (d-1), and (d-2), Tax Code,
655	655	apply to an election under Subsection (e) of this section in the
656	656	same manner as those subsections apply to an election under Section
657	657	26.08, Tax Code.
658	658	(j) For purposes of Subsection (d) [Sections 26.07(b)-(g)
659	659	and this subsection], the rollback tax rate of a district is the sum
660	660	of the following tax rates:
661	661	(1) the current year's debt service tax rate;
662	662	(2) the current year's [and] contract tax rate; and
663	663	(3) [rates plus] the operation and maintenance tax
664	664	rate that would impose 1.04 [1.08] times the amount of the operation
665	665	and maintenance tax imposed by the district in the preceding year on
666	666	a residence homestead appraised at the average appraised value of a
667	667	residence homestead in the district in that year, disregarding any
668	668	homestead exemption available only to disabled persons or persons
669	669	65 years of age or older.
670	670	(k) For purposes of Subsection (e), the rollback tax rate of
671	671	a district is the sum of the following tax rates:
672	672	(1) the current year's debt service tax rate;
673	673	(2) the current year's contract tax rate; and
674	674	(3) the operation and maintenance tax rate that would
675	675	impose 1.08 times the amount of the operation and maintenance tax
676	676	imposed by the district in the preceding year on a residence
677	677	homestead appraised at the average appraised value of a residence
678	678	homestead in the district in that year, disregarding any homestead
679	679	exemption available only to disabled persons or persons 65 years of
680	680	age or older.
681	681	(l) Notwithstanding any other provision of this section,
682	682	the board may substitute "eight percent" for "four percent" in
683	683	Subsection (a)(3)(A) and "1.08" for "1.04" in Subsections (d) and
684	684	(j) if any part of the district is located in an area declared a
685	685	disaster area during the current tax year by the governor or by the
686	686	president of the United States.
687	687	(m) In this section, "small taxing unit" has the meaning
688	688	assigned by Section 26.012, Tax Code.
689	689	SECTION 20. The following provisions are repealed:
690	690	(1) Section 49.236, Water Code, as added by Chapter
691	691	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
692	692	2003; and
693	693	(2) Section 49.2361, Water Code.
694	694	SECTION 21. This Act takes effect January 1, 2020.