86R4288 SMH-F
By: Paul H.B. No. 470
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the ad valorem rollback tax rate of a
taxing unit and voter approval of a proposed tax rate that exceeds
the rollback tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.012, Tax Code, is amended by adding
Subdivision (18) to read as follows:
(18) "Small taxing unit" means a taxing unit, other
than a school district, with a population of less than 40,000.
SECTION 2. Section 26.04, Tax Code, is amended by amending
Subsection (c) and adding Subsection (c-1) to read as follows:
(c) An officer or employee designated by the governing body
shall calculate the effective tax rate and the rollback tax rate for
the taxing unit, where:
(1) "Effective tax rate" means a rate expressed in
dollars per $100 of taxable value calculated according to the
following formula:
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 = (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 = (EFFECTIVE 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 taxing unit according to the formula
applicable to a small taxing unit if any part of the taxing 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.
SECTION 3. Section 26.041, Tax Code, is amended by amending
Subsections (a), (b), and (c) 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 effective tax rate and rollback
tax rate for the taxing unit are calculated according to the
following formulas:
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 = (EFFECTIVE
MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
RATE - SALES TAX GAIN RATE
and
ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SMALL
TAXING UNIT = (EFFECTIVE 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 taxing unit is
calculated according to the following applicable formula,
regardless of whether the taxing 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 effective tax rate and rollback tax rate for the
taxing unit are calculated according to the following formulas:
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 taxing unit according to the formula
applicable to a small taxing unit if any part of the taxing 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.
SECTION 4. The heading to Section 26.043, Tax Code, is
amended to read as follows:
Sec. 26.043. ROLLBACK AND EFFECTIVE TAX RATES [RATE] IN
CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
SECTION 5. 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 6. Section 26.07(a), Tax Code, is 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.
SECTION 7. 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 8. Section 26.08, Tax Code, is amended by amending
Subsections (a), (b), (d), (d-1), (d-2), (e), and (h) 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 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, 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.
(h) For purposes of this section, increases in taxable
values and tax levies occurring within a reinvestment zone
designated 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.
(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 86th
Legislature, Regular Session, 2019, or by an earlier legislature
provides that Section 26.07 does not apply to a tax imposed by the
taxing unit.
SECTION 9. Section 26.16(d), Tax Code, is amended to read as
follows:
(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
taxing 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
taxing unit's debt service for the following year.
"The 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 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 taxing unit adopts a tax rate in excess of the taxing 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 taxing unit [district] wishes to adopt a tax rate in
excess of the taxing unit's [district's] rollback tax rate."
SECTION 10. Sections 31.12(a) and (b), Tax Code, 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 taxing
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 taxing 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 11. 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 12. 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 13. 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 (d) [(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 14. Section 140.010, Local Government Code, is
amended by amending Subsections (a), (e), (f), and (g) and adding
Subsection (e-1) to read as follows:
(a) In this section:
(1) "Effective[, "effective] tax rate" and "rollback
tax rate" mean the effective tax rate and rollback tax rate of a
county or municipality, as applicable, as calculated under Chapter
26, Tax Code.
(2) "Small taxing unit" has the meaning assigned by
Section 26.012, Tax Code.
(e) A county or municipality that is a small taxing unit and
that proposes a property tax rate that exceeds the lower of the
effective tax rate or the rollback tax rate shall provide the
following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the lower of the effective or
rollback tax rate, and state law requires that two public hearings
be held by the governing body before adopting the proposed tax rate.
The governing body of (insert name of county or municipality)
proposes to use revenue attributable to the tax rate increase for
the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
EFFECTIVE TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (insert name of
county or municipality) may adopt before the voters are entitled to
petition for an election to limit the rate that may be approved to
the rollback tax rate.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)
"You are urged to attend and express your views at the following
public hearings on the proposed tax rate:
First Hearing: (insert date and time) at (insert location of
meeting).
Second Hearing: (insert date and time) at (insert location
of meeting)."
(e-1) A county or municipality that is not a small taxing
unit and that proposes a property tax rate that exceeds the lower of
the effective tax rate or the rollback tax rate shall provide the
following notice:
"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
"A tax rate of $_____ per $100 valuation has been proposed for
adoption by the governing body of (insert name of county or
municipality). This rate exceeds the lower of the effective or
rollback tax rate, and state law requires that two public hearings
be held by the governing body before adopting the proposed tax rate.
The governing body of (insert name of county or municipality)
proposes to use revenue attributable to the tax rate increase for
the purpose of (description of purpose of increase).
PROPOSED TAX RATE$______ per $100
PRECEDING YEAR'S TAX RATE$______ per $100
EFFECTIVE TAX RATE$______ per $100
ROLLBACK TAX RATE$______ per $100
"The effective tax rate is the total tax rate needed to raise the
same amount of property tax revenue for (insert name of county or
municipality) from the same properties in both the (insert
preceding tax year) tax year and the (insert current tax year) tax
year.
"The rollback tax rate is the highest tax rate that (insert name of
county or municipality) may adopt before the (insert "county" or
"city") is required to hold an election to limit the rate that may
be approved to the rollback tax rate.
"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
property tax amount = (rate) x (taxable value of your property) /
100
"For assistance or detailed information about tax calculations,
please contact:
(insert name of county or municipal tax assessor-collector)
(insert name of county or municipality) tax
assessor-collector
(insert address)
(insert telephone number)
(insert e-mail address)
(insert Internet website address, if applicable)
"You are urged to attend and express your views at the following
public hearings on the proposed tax rate:
First Hearing: (insert date and time) at (insert location of
meeting).
Second Hearing: (insert date and time) at (insert location
of meeting)."
(f) A county or municipality shall:
(1) provide the notice required by Subsection (d),
[or] (e), or (e-1), as applicable, not later than the later of
September 1 or the 30th day after the first date that the taxing
unit has received each applicable certified appraisal roll by:
(A) publishing the notice in a newspaper having
general circulation in:
(i) the county, in the case of notice
published by a county; or
(ii) the county in which the municipality
is located or primarily located, in the case of notice published by
a municipality; or
(B) mailing the notice to each property owner in:
(i) the county, in the case of notice
provided by a county; or
(ii) the municipality, in the case of
notice provided by a municipality; and
(2) post the notice on the Internet website of the
county or municipality, if applicable, beginning not later than the
later of September 1 or the 30th day after the first date that the
taxing unit has received each applicable certified appraisal roll
and continuing until the county or municipality adopts a tax rate.
(g) If the notice required by Subsection (d), [or] (e), or
(e-1) is published in a newspaper:
(1) the notice may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper; and
(2) the headline on the notice must be in 24-point or
larger type.
SECTION 15. 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 16. 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, [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 17. Section 49.107(g), Water Code, is amended to
read as follows:
(g) Sections 26.04, 26.05, [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 18. Section 49.108(f), Water Code, is amended to
read as follows:
(f) Sections 26.04, 26.05, [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 19. Section 49.236, Water Code, as added by Chapter
335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
2003, is amended by amending Subsections (a) and (d) and adding
Subsections (e), (f), (g), (h), (i), (j), (k), (l), and (m) 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 or
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.
"(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 requires or
authorizes an election in the district to approve the tax rate, a
description of the purpose of the proposed tax increase; and
(3) contain a statement in substantially the following
form, as applicable:
(A) if the district is not a small taxing unit:
"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
"If taxes on the average residence homestead increase by more
than four [eight] percent, [the qualified voters of the district by
petition may require that] an election must be held to determine
whether to approve [reduce] the [operation and maintenance] tax
rate [to the rollback tax rate] under Section 49.236(d), Water
Code."; or
(B) if the district is a small taxing unit:
"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 approve the tax rate under Section 49.236(e), Water Code."
(d) This subsection applies to a district only if the
district is not a small taxing unit. If the board [governing body]
of the [a] district adopts a combined debt service, operation and
maintenance, and contract tax rate that would impose more than 1.04
[1.08] times the amount of tax imposed by the district in the
preceding year on a residence homestead appraised at the average
appraised value of a residence homestead in the district in that
year, disregarding any homestead exemption available only to
disabled persons or persons 65 years of age or older, [the qualified
voters of the district by petition may require that] an election
must be held to determine whether [or not] to approve [reduce] the
tax rate adopted for the current year [to the rollback tax rate] in
accordance with the procedures provided by Sections 26.08(b), (c),
(d), (d-1), and (d-2) [26.07(b)-(g) and 26.081], Tax Code.
(e) This subsection and Subsections (f)-(i) apply to a
district only if the district is a small taxing unit. If the board
of the district adopts a combined debt service, operation and
maintenance, and contract tax rate that would impose more than 1.08
times the amount of tax imposed by the district in the preceding
year on a residence homestead appraised at the average appraised
value of a residence homestead in the district in that year,
disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, the qualified voters of
the district by petition may require that an election be held to
determine whether to approve the tax rate adopted for the current
year in accordance with the procedures provided by Subsections
(f)-(i) of this section and Section 26.081, Tax Code.
(f) A petition under Subsection (e) is valid only if:
(1) it states that it is intended to require an
election in the district on the question of approving the tax rate
adopted for the current year;
(2) it is signed by a number of registered voters of
the district equal to at least:
(A) seven percent of the number of registered
voters of the district according to the most recent official list of
registered voters if the tax rate adopted for the current tax year
would impose taxes for operation and maintenance in an amount of at
least $5 million; or
(B) 10 percent of the number of registered voters
of the district according to the most recent official list of
registered voters if the tax rate adopted for the current tax year
would impose taxes for operation and maintenance in an amount of
less than $5 million; and
(3) it is submitted to the board on or before the 90th
day after the date on which the board adopted the tax rate for the
current year.
(g) Not later than the 20th day after the day a petition is
submitted, the board shall determine whether or not the petition is
valid and pass a resolution stating its finding. If the board fails
to act within the time allowed, the petition is treated as if it had
been found valid.
(h) If the board finds that the petition is valid (or fails
to act within the time allowed), it shall order that an election be
held in the district on a date not less than 30 or more than 90 days
after the last day on which it could have acted to approve or
disapprove the petition. A state law requiring local elections to
be held on a specified date does not apply to the election unless a
specified date falls within the time permitted by this subsection.
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 district) for the current year,
a rate that is $____ higher per $100 valuation than the district's
rollback tax rate, 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.
(i) Sections 26.08(c), (d), (d-1), and (d-2), Tax Code,
apply to an election under Subsection (e) of this section in the
same manner as those subsections apply to an election under Section
26.08, Tax Code.
(j) For purposes of Subsection (d) [Sections 26.07(b)-(g)
and this subsection], the rollback tax rate of a district is the sum
of the following tax rates:
(1) the current year's debt service tax rate;
(2) the current year's [and] contract tax rate; and
(3) [rates plus] the operation and maintenance tax
rate that would impose 1.04 [1.08] times the amount of the operation
and maintenance tax imposed by the district in the preceding year on
a residence homestead appraised at the average appraised value of a
residence homestead in the district in that year, disregarding any
homestead exemption available only to disabled persons or persons
65 years of age or older.
(k) For purposes of Subsection (e), the rollback tax rate of
a district is the sum of the following tax rates:
(1) the current year's debt service tax rate;
(2) the current year's contract tax rate; and
(3) the operation and maintenance tax rate that would
impose 1.08 times the amount of the operation and maintenance tax
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in the district in that year, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older.
(l) Notwithstanding any other provision of this section,
the board may substitute "eight percent" for "four percent" in
Subsection (a)(3)(A) and "1.08" for "1.04" in Subsections (d) and
(j) if any part of the district 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.
(m) In this section, "small taxing unit" has the meaning
assigned by Section 26.012, Tax Code.
SECTION 20. The following provisions are repealed:
(1) Section 49.236, Water Code, as added by Chapter
248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
2003; and
(2) Section 49.2361, Water Code.
SECTION 21. This Act takes effect January 1, 2020.