86R37153 CJC/TJB-D
By: Burrows H.R. No. 2184
R E S O L U T I O N
BE IT RESOLVED by the House of Representatives of the State of
Texas, 86th Legislature, Regular Session, 2019, That House Rule 13,
Section 9(a), be suspended in part as provided by House Rule 13,
Section 9(f), to enable the conference committee appointed to
resolve the differences on Senate Bill 2 (ad valorem taxation;
authorizing fees) to consider and take action on the following
matters:
(1) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter not included in either the
house or senate version of the bill by adding the following new
SECTION to the bill:
SECTION 2. Chapter 1, Tax Code, is amended by adding Section
1.045 to read as follows:
Sec. 1.045. REFERENCE TO CERTAIN TERMS IN LAW. Unless the
context indicates otherwise:
(1) a reference in law to a taxing unit's effective
maintenance and operations rate is a reference to the taxing unit's
no-new-revenue maintenance and operations rate, as defined by
Chapter 26;
(2) a reference in law to a taxing unit's effective tax
rate is a reference to the taxing unit's no-new-revenue tax rate, as
defined by Chapter 26; and
(3) a reference in law to a taxing unit's rollback tax
rate is a reference to the taxing unit's voter-approval tax rate, as
defined by Chapter 26.
Explanation: The addition is necessary to ensure that
references in other law to terms in Title 1 of the Tax Code that are
changed in the bill are construed in accordance with the way those
terms are used in the bill.
(2) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
36 of the bill, in added Section 26.04(c-1)(2), Tax Code, to read as
follows:
(2) the third tax year after the tax year in which the
disaster occurred.
Explanation: The change is necessary to limit the period of
time during which certain taxing units may calculate the
voter-approval tax rate of the taxing unit at a higher rate
following certain disasters.
(3) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
36 of the bill, in amended Section 26.04(e), Tax Code, to read as
follows:
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall post
prominently on the home page of the taxing unit's Internet website
[deliver by mail to each property owner in the unit or publish in a
newspaper] in the form prescribed by the comptroller:
(1) the no-new-revenue [effective] tax rate, the
voter-approval [rollback] tax rate, and an explanation of how they
were calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation; and
(3) a schedule of the taxing unit's debt obligations
showing:
(A) the amount of principal and interest that
will be paid to service the taxing unit's debts in the next year
from property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the taxing unit by another
political subdivision and, if the taxing unit is created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, payments on debts that the taxing unit anticipates to
incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the taxing unit's anticipated
collection rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b)[;
[(4) the amount of additional sales and use tax
revenue anticipated in calculations under Section 26.041;
[(5) a statement that the adoption of a tax rate equal
to the effective tax rate would result in an increase or decrease,
as applicable, in the amount of taxes imposed by the unit as
compared to last year's levy, and the amount of the increase or
decrease;
[(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
[(A) the name of the unit discontinuing the
department, function, or activity;
[(B) the amount of property tax revenue spent by
the unit listed under Paragraph (A) to operate the discontinued
department, function, or activity in the 12 months preceding the
month in which the calculations required by this chapter are made;
and
[(C) the name of the unit that operates a
distinct department, function, or activity in all or a majority of
the territory of a taxing unit that has discontinued operating the
distinct department, function, or activity; and
[(7) in the year following the year in which a taxing
unit raised its rollback rate as required by Subsection (j), a
schedule that includes the following elements:
[(A) the amount of property tax revenue spent by
the unit to operate the department, function, or activity for which
the taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the calculations
required by this chapter are made; and
[(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B)].
Explanation: The change is necessary to remove the
requirement that the designated officer or employee of a taxing
unit publish certain tax information in a newspaper.
(4) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
37 of the bill, in added Section 26.041(c-1)(2), Tax Code, to read
as follows:
(2) the third tax year after the tax year in which the
disaster occurred.
Explanation: The change is necessary to limit the period of
time during which certain taxing units may calculate the
voter-approval tax rate of the taxing unit at a higher rate
following certain disasters.
(5) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter not included in either the
house or senate version of the bill in proposed SECTION 43 of the
bill by adding the following new Section 26.0443, Tax Code, to the
bill:
Sec. 26.0443. TAX RATE ADJUSTMENT FOR ELIGIBLE COUNTY
HOSPITAL EXPENDITURES. (a) In this section:
(1) "Eligible county hospital" means a hospital that:
(A) is:
(i) owned or leased by a county and operated
in accordance with Chapter 263, Health and Safety Code; or
(ii) owned or leased jointly by a
municipality and a county and operated in accordance with Chapter
265, Health and Safety Code; and
(B) is located in an area not served by a hospital
district created under Sections 4 through 11, Article IX, Texas
Constitution.
(2) "Eligible county hospital expenditures" for a tax
year means the amount paid by a county or municipality in the period
beginning on July 1 of the tax year preceding the tax year for which
the tax is adopted and ending on June 30 of the tax year for which
the tax is adopted to maintain and operate an eligible county
hospital.
(b) If a county's or municipality's eligible county hospital
expenditures exceed the amount of those expenditures for the
preceding tax year, the no-new-revenue maintenance and operations
rate for the county or municipality, as applicable, is increased by
the lesser of the rates computed according to the following
formulas:
(Current Tax Year's Eligible County Hospital
Expenditures - Preceding Tax Year's Eligible County
Hospital Expenditures) / (Current Total Value - New
Property Value)
or
(Preceding Tax Year's Eligible County Hospital
Expenditures x 0.08) / (Current Total Value - New
Property Value)
(c) The county or municipality shall include a notice of the
increase in the no-new-revenue maintenance and operations rate
provided by this section, including a description and amount of
eligible county hospital expenditures, in the information
published under Section 26.04(e) and, as applicable, in the notice
prescribed by Section 26.06 or 26.061.
Explanation: The addition is necessary to add a provision to
Title 1 of the Tax Code to provide for a tax rate adjustment for
eligible county hospital expenditures.
(6) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
48 of the bill, in amended Section 26.06(a), Tax Code, to read as
follows:
(a) A public hearing required by Section 26.05 may not be
held before the fifth [seventh] day after the date the notice of the
public hearing is given. The [second hearing may not be held
earlier than the third day after the date of the first hearing.
Each] hearing must be on a weekday that is not a public holiday. The
[Each] hearing must be held inside the boundaries of the unit in a
publicly owned building or, if a suitable publicly owned building
is not available, in a suitable building to which the public
normally has access. At the hearing [hearings], the governing body
must afford adequate opportunity for proponents and opponents of
the tax increase to present their views.
Explanation: The change is necessary to prohibit holding a
public hearing on certain proposed tax rates before the fifth day
after the date the notice of hearing is given.
(7) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
48 of the bill, in added Sections 26.06(b-1) and (b-3), Tax Code, in
the language of the statement prescribed by those subsections that
describes the effect of the rejection by the voters of the proposed
tax rate, to read as follows:
If a majority of the voters reject the proposed tax rate, the tax
rate of the (name of taxing unit) will be the voter-approval tax
rate.
Explanation: The change is necessary to provide notice of
what tax rate applies to a taxing unit in a tax year if the voters
reject a proposed tax rate that exceeds the voter-approval tax
rate.
(8) House Rule 13, Section 9(a)(3), is suspended to permit
the committee to add text on a matter not in disagreement in SECTION
48 of the bill, in added Sections 26.06(b-1), (b-2), and (b-3), Tax
Code, to read as follows:
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
Explanation: The addition is necessary to require that the
notice of a public hearing on certain proposed tax rates include a
statement that the 86th Texas Legislature modified the manner in
which the voter-approval tax rate is calculated.
(9) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
48 of the bill, in amended Sections 26.06(d) and (e), Tax Code, to
read as follows:
(d) The governing body may vote on the proposed tax rate at
the public hearing. If the governing body does not vote on the
proposed tax rate at the public hearing, [At the public hearings]
the governing body shall announce at the public hearing the date,
time, and place of the meeting at which it will vote on the proposed
tax rate. [After each hearing the governing body shall give notice
of the meeting at which it will vote on the proposed tax rate and the
notice shall be in the same form as prescribed by Subsections (b)
and (c), except that it must state the following:
["NOTICE OF TAX REVENUE INCREASE
["The (name of the taxing unit) conducted public hearings on
(date of first hearing) and (date of second hearing) on a proposal
to increase the total tax revenues of the (name of the taxing unit)
from properties on the tax roll in the preceding year by (percentage
by which proposed tax rate exceeds lower of rollback tax rate or
effective tax rate calculated under this chapter) percent.
["The total tax revenue proposed to be raised last year at
last year's tax rate of (insert tax rate for the preceding year) for
each $100 of taxable value was (insert total amount of taxes imposed
in the preceding year).
["The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, excluding tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by the difference between current
total value and new property value).
["The total tax revenue proposed to be raised this year at the
proposed tax rate of (insert proposed tax rate) for each $100 of
taxable value, including tax revenue to be raised from new property
added to the tax roll this year, is (insert amount computed by
multiplying proposed tax rate by current total value).
["The (governing body of the taxing unit) is scheduled to
vote on the tax rate that will result in that tax increase at a
public meeting to be held on (date of meeting) at (location of
meeting, including mailing address) at (time of meeting).
["The (governing body of the taxing unit) proposes to use the
increase in total tax revenue for the purpose of (description of
purpose of increase)."]
(e) A [The] meeting to vote on the tax increase may not be
held [earlier than the third day or] later than the seventh [14th]
day after the date of the [second] public hearing. The meeting must
be held inside the boundaries of the taxing unit in a publicly owned
building or, if a suitable publicly owned building is not
available, in a suitable building to which the public normally has
access. [If the governing body does not adopt a tax rate that
exceeds the lower of the rollback tax rate or the effective tax rate
by the 14th day, it must give a new notice under Subsection (d)
before it may adopt a rate that exceeds the lower of the rollback
tax rate or the effective tax rate.]
Explanation: The changes are necessary to provide the manner
in which the governing body of a taxing unit must in certain
circumstances provide notice of the meeting at which the governing
body will adopt the taxing unit's proposed tax rate.
(10) House Rule 13, Section 9(a)(3), is suspended to permit
the committee to add text on a matter not in disagreement in SECTION
49 of the bill, in added Section 26.061(b), Tax Code, to read as
follows:
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
Explanation: The addition is necessary to require that the
notice of a meeting on certain proposed tax rates include a
statement that the 86th Texas Legislature modified the manner in
which the voter-approval tax rate is calculated.
(11) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
57 of the bill, in added Section 26.16(d-2), Tax Code, to read as
follows:
(d-2) Not later than August 7, the county
assessor-collector shall post on the website the tax rate
calculation forms described by Subsection (d-1)(1) for the current
tax year.
Explanation: The change is necessary to give the county
assessor-collector of a county more time to post certain tax rate
calculation forms on the Internet.
(12) House Rule 13, Section 9(a)(3), is suspended to permit
the committee to add text on a matter not in disagreement in SECTION
57 of the bill, in added Section 26.17(a), Tax Code, to read as
follows:
(6) includes the following statement: "The 86th Texas
Legislature modified the manner in which the voter-approval tax
rate is calculated to limit the rate of growth of property taxes in
the state.".
Explanation: The addition is necessary to require the chief
appraiser of an appraisal district to include in a property tax
database a statement that the 86th Texas Legislature modified the
manner in which the voter-approval tax rate is calculated.
(13) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
58 of the bill, in amended Section 31.12(b)(2), Tax Code, to read as
follows:
(2) if the refund is required by Section 26.07(g) or
26.075(k), on the date the results of the election to approve or
reduce the tax rate, as applicable, are certified;
Explanation: The change is necessary to change the date on
which liability for certain tax refunds arises.
(14) House Rule 13, Section 9(a)(3), is suspended to permit
the committee to add text on a matter not in disagreement in SECTION
66 of the bill, in amended Section 41.66, Tax Code, to read as
follows:
(j-2) An appraisal review board must schedule a hearing on a
protest filed by a property owner who is 65 years of age or older,
disabled, a military service member, a military veteran, or the
spouse of a military service member or military veteran before
scheduling a hearing on a protest filed by a designated agent of a
property owner.
Explanation: The addition is necessary to require an
appraisal review board to schedule a hearing on a protest filed by
certain persons before those of other persons.
(15) House Rule 13, Section 9(a)(2), is suspended to permit
the committee to omit text not in disagreement by omitting SECTION
68 of the senate engrossment of Senate Bill 2 and the corresponding
section of the bill as the bill was amended by the house, which
reads as follows:
SECTION 68. Section 45.105(e), Education Code, is amended
to read as follows:
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B, Chapter
130, in a county with a population of more than two million may
dedicate a specific percentage of the local tax levy to the use of
the junior college district for facilities and equipment or for the
maintenance and operating expenses of the junior college district.
To be effective, the dedication must be made by the governing body
on or before the date on which the governing body adopts its tax
rate for a year. The amount of local tax funds derived from the
percentage of the local tax levy dedicated to a junior college
district from a tax levy may not exceed the amount that would be
levied by five percent of the no-new-revenue [effective] tax rate
for the tax year calculated as provided by Section 26.04, Tax Code,
on all property taxable by the school district. All real property
purchased with these funds is the property of the school district,
but is subject to the exclusive control of the governing body of the
junior college district for as long as the junior college district
uses the property for educational purposes.
Explanation: The omission is necessary to ensure consistency
of terminology used in the Education Code to describe certain tax
rates.
(16) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter not included in either the
house or senate version of the bill by adding the following new
SECTIONS to the bill:
SECTION 76. Section 281.107(j), Health and Safety Code, is
amended to read as follows:
(j) The portion of the rate of ad valorem tax that is to be
levied and assessed each year by or for the district that is
allocated by the district to the payment of the principal of and the
interest on bonds and other obligations or the maintenance of
reserves therefor in accordance with this section shall be applied
as a payment on current debt in calculating the current debt rate
under the applicable voter-approval tax rate [rollback] provisions
of Chapter 26, Tax Code.
SECTION 77. The heading to Section 281.124, Health and
Safety Code, is amended to read as follows:
Sec. 281.124. ELECTION TO APPROVE TAX RATE IN EXCESS OF
VOTER-APPROVAL [ROLLBACK] TAX RATE.
Explanation: The addition is necessary to ensure consistency
of terminology used in the Health and Safety Code and Title 1 of the
Tax Code to describe certain tax rates.
(17) House Rule 13, Section 9(a)(3), is suspended to permit
the committee to add text on a matter not in disagreement in SECTION
78 of the bill, in amended Section 281.124, Health and Safety Code,
to read as follows:
(b) The board may hold an election at which the registered
voters of the district may approve a tax rate for the current tax
year that exceeds the district's voter-approval [rollback] tax rate
for the year computed under Chapter 26, Tax Code, by a specific rate
stated in dollars and cents per $100 of taxable value.
(c) An election under this section must be held at least 180
days before the date on which the district's tax rate is adopted by
the board. At the election, the ballot shall be prepared to permit
voting for or against the proposition: "Approving the ad valorem
tax rate of $ (insert total proposed tax rate) per $100 valuation in
(insert district name) for the (insert current tax year) tax year, a
rate that exceeds the district's voter-approval [rollback] tax
rate. The proposed ad valorem tax rate exceeds the ad valorem tax
rate most recently adopted by the district by $ (insert difference
between proposed and preceding year's tax rates) per $100
valuation."
Explanation: The addition is necessary to ensure consistency
of terminology used in the Health and Safety Code and Title 1 of the
Tax Code to describe certain tax rates.
(18) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter not included in either the
house or senate version of the bill by adding the following new
SECTION to the bill:
SECTION 85. Section 49.057, Water Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) The board shall adopt an annual budget. The board of a
developed district, as defined by Section 49.23602, shall include
as an appendix to the budget the district's:
(1) audited financial statements;
(2) bond transcripts; and
(3) engineer's reports required by Section 49.106.
(b-1) All district employees are employed at the will of the
district unless the district and employee execute a written
employment contract.
Explanation: The addition is necessary to ensure that the
board of certain special districts includes an appendix in the
district's budget that includes certain information.
(19) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
105 of the bill, in the transition language, to read as follows:
SECTION 105. (a) An appraisal district established in a
county with a population of 200,000 or more and each taxing unit
located wholly or primarily in such an appraisal district shall
comply with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and
26.18, Tax Code, as added by this Act, beginning with the 2020 tax
year.
(b) An appraisal district established in a county with a
population of less than 200,000 and each taxing unit located wholly
or primarily in such an appraisal district shall comply with
Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18, Tax
Code, as added by this Act, beginning with the 2021 tax year.
Explanation: The change is necessary to provide for the
applicability and implementation of certain provisions of the Tax
Code added by the bill.
(20) House Rule 13, Section 9(a)(1), is suspended to permit
the committee to amend text not in disagreement in proposed SECTION
111 of the bill, in the transition language, to read as follows:
SECTION 111. Sections 41.46, 41.461, 41.47, 41.66(h), (i),
and (j), and 41.67, Tax Code, as amended by this Act, and Sections
41.66(j-1), (j-2), and (p), Tax Code, as added by this Act, apply
only to a protest for which the notice of protest was filed by a
property owner or the designated agent of the owner with the
appraisal review board established for an appraisal district on or
after January 1, 2020.
Explanation: The change is necessary to provide for the
implementation of certain provisions of the Tax Code added by the
bill.
(21) House Rule 13, Section 9(a)(4), is suspended to permit
the committee to add text on a matter not included in either the
house or senate version of the bill by adding the following new
SECTIONS to the bill:
SECTION 115. Section 42.081, Tax Code, as added by this Act,
applies only to an appeal under Chapter 42, Tax Code, that is filed
on or after January 1, 2020.
SECTION 117. Section 49.057, Water Code, as amended by this
Act, applies only to a budget adopted on or after January 1, 2020.
Explanation: The changes are necessary to provide for the
implementation of certain provisions of the Tax Code and Water Code
added by the bill.
(22) House Rule 13, Section 9(a)(2), is suspended to permit
the committee to omit text not in disagreement in SECTION 110 of the
senate engrossment of Senate Bill 2 and the corresponding section
of the bill as the bill was amended by the house by striking
references to Sections 26.04(e-2), (e-3), and (e-4) and Sections
26.05(d-1) and (d-2), Tax Code.
Explanation: The omission is necessary to implement the
changes made in SECTION 105 by the bill.