Texas 2019 - 86th Regular

Texas House Bill HB913 Compare Versions

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Old	New	Differences
1	1	86R5124 SMH-D
2	2	By: Shaheen H.B. No. 913
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 other than a school district.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 26.04(c), Tax Code, is amended to read as
11	11	follows:
12	12	(c) An officer or employee designated by the governing body
13	13	shall calculate the effective tax rate and the rollback tax rate for
14	14	the taxing unit, where:
15	15	(1) "Effective tax rate" means a rate expressed in
16	16	dollars per $100 of taxable value calculated according to the
17	17	following formula:
18	18	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
19	19	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
20	20	; and
21	21	(2) "Rollback tax rate" means a rate expressed in
22	22	dollars per $100 of taxable value calculated according to the
23	23	following formula:
24	24	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
25	25	OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE
26	26	SECTION 2. Sections 26.041(a), (b), and (c), Tax Code, are
27	27	amended to read as follows:
28	28	(a) In the first year in which an additional sales and use
29	29	tax is required to be collected, the effective tax rate and rollback
30	30	tax rate for the taxing unit are calculated according to the
31	31	following formulas:
32	32	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
33	33	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
34	34	SALES TAX GAIN RATE
35	35	and
36	36	ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND
37	37	OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE -
38	38	SALES TAX GAIN RATE
39	39	where "sales tax gain rate" means a number expressed in dollars per
40	40	$100 of taxable value, calculated by dividing the revenue that will
41	41	be generated by the additional sales and use tax in the following
42	42	year as calculated under Subsection (d) [of this section] by the
43	43	current total value.
44	44	(b) Except as provided by Subsections (a) and (c) [of this
45	45	section], in a year in which a taxing unit imposes an additional
46	46	sales and use tax the rollback tax rate for the taxing unit is
47	47	calculated according to the following formula, regardless of
48	48	whether the taxing unit levied a property tax in the preceding year:
49	49	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
50	50	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
51	51	TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE
52	52	- SALES TAX REVENUE RATE)
53	53	where "last year's maintenance and operations expense" means the
54	54	amount spent for maintenance and operations from property tax and
55	55	additional sales and use tax revenues in the preceding year, and
56	56	"sales tax revenue rate" means a number expressed in dollars per
57	57	$100 of taxable value, calculated by dividing the revenue that will
58	58	be generated by the additional sales and use tax in the current year
59	59	as calculated under Subsection (d) [of this section] by the current
60	60	total value.
61	61	(c) In a year in which a taxing unit that has been imposing
62	62	an additional sales and use tax ceases to impose an additional sales
63	63	and use tax the effective tax rate and rollback tax rate for the
64	64	taxing unit are calculated according to the following formulas:
65	65	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
66	66	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
67	67	SALES TAX LOSS RATE
68	68	and
69	69	ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND
70	70	OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT
71	71	TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE
72	72	where "sales tax loss rate" means a number expressed in dollars per
73	73	$100 of taxable value, calculated by dividing the amount of sales
74	74	and use tax revenue generated in the last four quarters for which
75	75	the information is available by the current total value and "last
76	76	year's maintenance and operations expense" means the amount spent
77	77	for maintenance and operations from property tax and additional
78	78	sales and use tax revenues in the preceding year.
79	79	SECTION 3. Section 8876.152(b), Special District Local Laws
80	80	Code, is amended to read as follows:
81	81	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
82	82	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
83	83	78th Legislature, Regular Session, 2003, applies] to the district.
84	84	SECTION 4. Sections 49.236(a) and (d), Water Code, as added
85	85	by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
86	86	Session, 2003, are amended to read as follows:
87	87	(a) Before the board adopts an ad valorem tax rate for the
88	88	district for debt service, operation and maintenance purposes, or
89	89	contract purposes, the board shall give notice of each meeting of
90	90	the board at which the adoption of a tax rate will be considered.
91	91	The notice must:
92	92	(1) contain a statement in substantially the following
93	93	form:
94	94	"NOTICE OF PUBLIC HEARING ON TAX RATE
95	95	"The (name of the district) will hold a public hearing on a
96	96	proposed tax rate for the tax year (year of tax levy) on (date and
97	97	time) at (meeting place). Your individual taxes may increase or
98	98	decrease, depending on the change in the taxable value of your
99	99	property in relation to the change in taxable value of all other
100	100	property and the tax rate that is adopted.
101	101	"(Names of all board members and, if a vote was taken, an
102	102	indication of how each voted on the proposed tax rate and an
103	103	indication of any absences.)";
104	104	(2) contain the following information:
105	105	(A) the district's total adopted tax rate for the
106	106	preceding year and the proposed tax rate, expressed as an amount per
107	107	$100;
108	108	(B) the difference, expressed as an amount per
109	109	$100 and as a percent increase or decrease, as applicable, in the
110	110	proposed tax rate compared to the adopted tax rate for the preceding
111	111	year;
112	112	(C) the average appraised value of a residence
113	113	homestead in the district in the preceding year and in the current
114	114	year; the district's total homestead exemption, other than an
115	115	exemption available only to disabled persons or persons 65 years of
116	116	age or older, applicable to that appraised value in each of those
117	117	years; and the average taxable value of a residence homestead in the
118	118	district in each of those years, disregarding any homestead
119	119	exemption available only to disabled persons or persons 65 years of
120	120	age or older;
121	121	(D) the amount of tax that would have been
122	122	imposed by the district in the preceding year on a residence
123	123	homestead appraised at the average appraised value of a residence
124	124	homestead in that year, disregarding any homestead exemption
125	125	available only to disabled persons or persons 65 years of age or
126	126	older;
127	127	(E) the amount of tax that would be imposed by the
128	128	district in the current year on a residence homestead appraised at
129	129	the average appraised value of a residence homestead in that year,
130	130	disregarding any homestead exemption available only to disabled
131	131	persons or persons 65 years of age or older, if the proposed tax
132	132	rate is adopted; [and]
133	133	(F) the difference between the amounts of tax
134	134	calculated under Paragraphs (D) and (E), expressed in dollars and
135	135	cents and described as the annual percentage increase or decrease,
136	136	as applicable, in the tax to be imposed by the district on the
137	137	average residence homestead in the district in the current year if
138	138	the proposed tax rate is adopted; and
139	139	(G) if the proposed combined debt service,
140	140	operation and maintenance, and contract tax rate exceeds the
141	141	rollback tax rate, a description of the purpose of the proposed tax
142	142	increase; and
143	143	(3) contain a statement in substantially the following
144	144	form:
145	145	"NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION
146	146	"If operation and maintenance taxes on the average residence
147	147	homestead increase by more than four [eight] percent, the qualified
148	148	voters of the district by petition may require that an election be
149	149	held to determine whether to reduce the [operation and maintenance]
150	150	tax rate to the rollback tax rate under Section 49.236(d), Water
151	151	Code."
152	152	(d) If the governing body of a district adopts a combined
153	153	debt service, operation and maintenance, and contract tax rate that
154	154	exceeds the rollback tax rate [would impose more than 1.08 times the
155	155	amount of tax imposed by the district in the preceding year on a
156	156	residence homestead appraised at the average appraised value of a
157	157	residence homestead in the district in that year, disregarding any
158	158	homestead exemption available only to disabled persons or persons
159	159	65 years of age or older], the qualified voters of the district by
160	160	petition may require that an election be held to determine whether
161	161	[or not] to reduce the tax rate adopted for the current year to the
162	162	rollback tax rate in accordance with the procedures provided by
163	163	Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of
164	164	Sections 26.07(b)-(g) and this section [subsection], the rollback
165	165	tax rate is the sum of the following tax rates:
166	166	(1) the current year's debt service tax rate;
167	167	(2) the current year's [and] contract tax rate; and
168	168	(3) [rates plus] the operation and maintenance tax
169	169	rate that would impose 1.04 [1.08] times the amount of the operation
170	170	and maintenance tax imposed by the district in the preceding year on
171	171	a residence homestead appraised at the average appraised value of a
172	172	residence homestead in the district in that year, disregarding any
173	173	homestead exemption available only to disabled persons or persons
174	174	65 years of age or older.
175	175	SECTION 5. The following provisions are repealed:
176	176	(1) Section 49.236, Water Code, as added by Chapter
177	177	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
178	178	2003; and
179	179	(2) Section 49.2361, Water Code.
180	180	SECTION 6. (a) The change in law made by this Act applies to
181	181	the ad valorem tax rate of a taxing unit beginning with the 2019 tax
182	182	year, except as provided by Subsection (b) of this section.
183	183	(b) If the governing body of a taxing unit adopted an ad
184	184	valorem tax rate for the taxing unit for the 2019 tax year before
185	185	the effective date of this Act, the change in law made by this Act
186	186	applies to the ad valorem tax rate of that taxing unit beginning
187	187	with the 2020 tax year, and the law in effect when the tax rate was
188	188	adopted applies to the 2019 tax year with respect to that taxing
189	189	unit.
190	190	SECTION 7. This Act takes effect immediately if it receives
191	191	a vote of two-thirds of all the members elected to each house, as
192	192	provided by Section 39, Article III, Texas Constitution. If this
193	193	Act does not receive the vote necessary for immediate effect, this
194	194	Act takes effect on the 91st day after the last day of the
195	195	legislative session.