| 1 | 1 | | 86R6221 SMH-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 1227 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the date for ordering or holding an election to ratify |
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| 8 | 8 | | the ad valorem tax rate of a school district; making conforming |
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| 9 | 9 | | changes. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 11.4391(a), Tax Code, is amended to read |
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| 12 | 12 | | as follows: |
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| 13 | 13 | | (a) The chief appraiser shall accept and approve or deny an |
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| 14 | 14 | | application for an exemption for freeport goods under Section |
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| 15 | 15 | | 11.251 after the deadline for filing it has passed if it is filed |
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| 16 | 16 | | not later than June 1 [15]. |
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| 17 | 17 | | SECTION 2. Sections 22.23(a) and (b), Tax Code, are amended |
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| 18 | 18 | | to read as follows: |
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| 19 | 19 | | (a) Rendition statements and property reports must be |
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| 20 | 20 | | delivered to the chief appraiser after January 1 and not later than |
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| 21 | 21 | | April 1 [15], except as provided by Section 22.02. |
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| 22 | 22 | | (b) On written request by the property owner, the chief |
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| 23 | 23 | | appraiser shall extend a deadline for filing a rendition statement |
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| 24 | 24 | | or property report to a date not later than May 1 [15]. The chief |
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| 25 | 25 | | appraiser may further extend the deadline an additional 15 days |
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| 26 | 26 | | upon good cause shown in writing by the property owner. |
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| 27 | 27 | | SECTION 3. Sections 25.19(a) and (g), Tax Code, are amended |
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| 28 | 28 | | to read as follows: |
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| 29 | 29 | | (a) By April 15 [1] or as soon thereafter as practicable [if |
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| 30 | 30 | | the property is a single-family residence that qualifies for an |
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| 31 | 31 | | exemption under Section 11.13, or by May 1 or as soon thereafter as |
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| 32 | 32 | | practicable in connection with any other property], the chief |
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| 33 | 33 | | appraiser shall deliver a clear and understandable written notice |
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| 34 | 34 | | to a property owner of the appraised value of the property owner's |
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| 35 | 35 | | property if: |
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| 36 | 36 | | (1) the appraised value of the property is greater |
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| 37 | 37 | | than it was in the preceding year; |
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| 38 | 38 | | (2) the appraised value of the property is greater |
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| 39 | 39 | | than the value rendered by the property owner; |
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| 40 | 40 | | (3) the property was not on the appraisal roll in the |
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| 41 | 41 | | preceding year; or |
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| 42 | 42 | | (4) an exemption or partial exemption approved for the |
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| 43 | 43 | | property for the preceding year was canceled or reduced for the |
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| 44 | 44 | | current year. |
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| 45 | 45 | | (g) By April 15 [1] or as soon thereafter as practicable [if |
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| 46 | 46 | | the property is a single-family residence that qualifies for an |
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| 47 | 47 | | exemption under Section 11.13, or by May 1 or as soon thereafter as |
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| 48 | 48 | | practicable in connection with any other property], the chief |
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| 49 | 49 | | appraiser shall deliver a written notice to the owner of each |
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| 50 | 50 | | property not included in a notice required to be delivered under |
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| 51 | 51 | | Subsection (a), if the property was reappraised in the current tax |
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| 52 | 52 | | year, if the ownership of the property changed during the preceding |
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| 53 | 53 | | year, or if the property owner or the agent of a property owner |
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| 54 | 54 | | authorized under Section 1.111 makes a written request for the |
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| 55 | 55 | | notice. The chief appraiser shall separate real from personal |
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| 56 | 56 | | property and include in the notice for each property: |
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| 57 | 57 | | (1) the appraised value of the property in the |
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| 58 | 58 | | preceding year; |
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| 59 | 59 | | (2) the appraised value of the property for the |
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| 60 | 60 | | current year and the kind of each partial exemption, if any, |
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| 61 | 61 | | approved for the current year; |
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| 62 | 62 | | (3) a detailed explanation of the time and procedure |
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| 63 | 63 | | for protesting the value; and |
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| 64 | 64 | | (4) the date and place the appraisal review board will |
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| 65 | 65 | | begin hearing protests. |
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| 66 | 66 | | SECTION 4. Section 25.22(a), Tax Code, is amended to read as |
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| 67 | 67 | | follows: |
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| 68 | 68 | | (a) By May 1 [15] or as soon thereafter as practicable, the |
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| 69 | 69 | | chief appraiser shall submit the completed appraisal records to the |
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| 70 | 70 | | appraisal review board for review and determination of protests. |
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| 71 | 71 | | However, the chief appraiser may not submit the records until the |
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| 72 | 72 | | chief appraiser has delivered the notices required by Sections |
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| 73 | 73 | | 11.45(d) [Subsection (d) of Section 11.45], 23.44(d) [Subsection |
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| 74 | 74 | | (d) of Section 23.44], 23.57(d) [Subsection (d) of Section 23.57], |
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| 75 | 75 | | 23.79(d) [Subsection (d) of Section 23.79], 23.85(d) [Subsection |
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| 76 | 76 | | (d) of Section 23.85], 23.95(d) [Subsection (d) of Section 23.95], |
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| 77 | 77 | | 23.9805(d) [Subsection (d) of Section 23.9805], and [Section] |
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| 78 | 78 | | 25.19. |
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| 79 | 79 | | SECTION 5. Sections 26.01(a) and (e), Tax Code, are amended |
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| 80 | 80 | | to read as follows: |
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| 81 | 81 | | (a) By July 10 [25], the chief appraiser shall prepare and |
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| 82 | 82 | | certify to the assessor for each taxing unit participating in the |
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| 83 | 83 | | district that part of the appraisal roll for the district that lists |
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| 84 | 84 | | the property taxable by the taxing unit. The part certified to the |
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| 85 | 85 | | assessor is the appraisal roll for the taxing unit. The chief |
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| 86 | 86 | | appraiser shall consult with the assessor for each taxing unit and |
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| 87 | 87 | | notify each taxing unit in writing by April 1 of the form in which |
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| 88 | 88 | | the roll will be provided to each taxing unit. |
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| 89 | 89 | | (e) Except as provided by Subsection (f), not later than May |
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| 90 | 90 | | 15 [April 30], the chief appraiser shall prepare and certify to the |
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| 91 | 91 | | assessor for each county, municipality, and school district |
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| 92 | 92 | | participating in the appraisal district an estimate of the taxable |
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| 93 | 93 | | value of property in that taxing unit. The chief appraiser shall |
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| 94 | 94 | | assist each county, municipality, and school district in |
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| 95 | 95 | | determining values of property in that taxing unit for the taxing |
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| 96 | 96 | | unit's budgetary purposes. |
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| 97 | 97 | | SECTION 6. Sections 26.04(b) and (e), Tax Code, are amended |
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| 98 | 98 | | to read as follows: |
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| 99 | 99 | | (b) The assessor shall submit the appraisal roll for the |
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| 100 | 100 | | taxing unit showing the total appraised, assessed, and taxable |
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| 101 | 101 | | values of all property and the total taxable value of new property |
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| 102 | 102 | | to the governing body of the taxing unit by July 15 [August 1] or as |
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| 103 | 103 | | soon thereafter as practicable. By July 15 [August 1] or as soon |
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| 104 | 104 | | thereafter as practicable, the taxing unit's collector shall |
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| 105 | 105 | | certify [an estimate of] the anticipated collection rate for the |
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| 106 | 106 | | current year to the governing body. If the collector certified an |
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| 107 | 107 | | anticipated collection rate in the preceding year and the actual |
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| 108 | 108 | | collection rate in that year exceeded the anticipated rate, the |
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| 109 | 109 | | collector shall also certify the amount of debt taxes collected in |
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| 110 | 110 | | excess of the anticipated amount in the preceding year. |
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| 111 | 111 | | (e) By July 22 [August 7] or as soon thereafter as |
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| 112 | 112 | | practicable, the designated officer or employee shall submit the |
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| 113 | 113 | | rates to the governing body. By July 27, the designated officer or |
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| 114 | 114 | | employee [He] shall deliver by mail to each property owner in the |
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| 115 | 115 | | taxing unit or publish in a newspaper in the form prescribed by the |
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| 116 | 116 | | comptroller: |
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| 117 | 117 | | (1) the effective tax rate, the rollback tax rate, and |
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| 118 | 118 | | an explanation of how they were calculated; |
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| 119 | 119 | | (2) the estimated amount of interest and sinking fund |
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| 120 | 120 | | balances and the estimated amount of maintenance and operation or |
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| 121 | 121 | | general fund balances remaining at the end of the current fiscal |
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| 122 | 122 | | year that are not encumbered with or by corresponding existing debt |
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| 123 | 123 | | obligation; |
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| 124 | 124 | | (3) a schedule of the taxing unit's debt obligations |
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| 125 | 125 | | showing: |
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| 126 | 126 | | (A) the amount of principal and interest that |
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| 127 | 127 | | will be paid to service the taxing unit's debts in the next year |
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| 128 | 128 | | from property tax revenue, including payments of lawfully incurred |
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| 129 | 129 | | contractual obligations providing security for the payment of the |
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| 130 | 130 | | principal of and interest on bonds and other evidences of |
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| 131 | 131 | | indebtedness issued on behalf of the taxing unit by another |
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| 132 | 132 | | political subdivision and, if the taxing unit is created under |
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| 133 | 133 | | Section 52, Article III, or Section 59, Article XVI, Texas |
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| 134 | 134 | | Constitution, payments on debts that the taxing unit anticipates to |
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| 135 | 135 | | incur in the next calendar year; |
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| 136 | 136 | | (B) the amount by which taxes imposed for debt |
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| 137 | 137 | | are to be increased because of the taxing unit's anticipated |
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| 138 | 138 | | collection rate; and |
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| 139 | 139 | | (C) the total of the amounts listed in Paragraphs |
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| 140 | 140 | | (A)-(B), less any amount collected in excess of the previous year's |
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| 141 | 141 | | anticipated collections certified as provided in Subsection (b); |
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| 142 | 142 | | (4) the amount of additional sales and use tax revenue |
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| 143 | 143 | | anticipated in calculations under Section 26.041; |
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| 144 | 144 | | (5) a statement that the adoption of a tax rate equal |
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| 145 | 145 | | to the effective tax rate would result in an increase or decrease, |
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| 146 | 146 | | as applicable, in the amount of taxes imposed by the taxing unit as |
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| 147 | 147 | | compared to last year's levy, and the amount of the increase or |
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| 148 | 148 | | decrease; |
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| 149 | 149 | | (6) in the year that a taxing unit calculates an |
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| 150 | 150 | | adjustment under Subsection (i) or (j), a schedule that includes |
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| 151 | 151 | | the following elements: |
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| 152 | 152 | | (A) the name of the taxing unit discontinuing the |
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| 153 | 153 | | department, function, or activity; |
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| 154 | 154 | | (B) the amount of property tax revenue spent by |
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| 155 | 155 | | the taxing unit listed under Paragraph (A) to operate the |
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| 156 | 156 | | discontinued department, function, or activity in the 12 months |
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| 157 | 157 | | preceding the month in which the calculations required by this |
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| 158 | 158 | | chapter are made; and |
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| 159 | 159 | | (C) the name of the taxing unit that operates a |
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| 160 | 160 | | distinct department, function, or activity in all or a majority of |
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| 161 | 161 | | the territory of a taxing unit that has discontinued operating the |
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| 162 | 162 | | distinct department, function, or activity; and |
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| 163 | 163 | | (7) in the year following the year in which a taxing |
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| 164 | 164 | | unit raised its rollback tax rate as required by Subsection (j), a |
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| 165 | 165 | | schedule that includes the following elements: |
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| 166 | 166 | | (A) the amount of property tax revenue spent by |
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| 167 | 167 | | the taxing unit to operate the department, function, or activity |
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| 168 | 168 | | for which the taxing unit raised the rollback tax rate as required |
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| 169 | 169 | | by Subsection (j) for the 12 months preceding the month in which the |
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| 170 | 170 | | calculations required by this chapter are made; and |
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| 171 | 171 | | (B) the amount published by the taxing unit in |
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| 172 | 172 | | the preceding tax year under Subdivision (6)(B). |
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| 173 | 173 | | SECTION 7. Section 26.05(a), Tax Code, is amended to read as |
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| 174 | 174 | | follows: |
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| 175 | 175 | | (a) The governing body of each taxing unit[, before the |
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| 176 | 176 | | later of September 30 or the 60th day after the date the certified |
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| 177 | 177 | | appraisal roll is received by the taxing unit,] shall adopt a tax |
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| 178 | 178 | | rate for the current tax year and shall notify the assessor for the |
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| 179 | 179 | | taxing unit of the rate adopted. The governing body must adopt a |
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| 180 | 180 | | tax rate before the later of September 30 or the 60th day after the |
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| 181 | 181 | | date the certified appraisal roll is received by the taxing unit, |
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| 182 | 182 | | except that the governing body must adopt a tax rate that exceeds |
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| 183 | 183 | | the rollback tax rate before August 15. The tax rate consists of |
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| 184 | 184 | | two components, each of which must be approved separately. The |
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| 185 | 185 | | components are: |
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| 186 | 186 | | (1) for a taxing unit other than a school district, the |
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| 187 | 187 | | rate that, if applied to the total taxable value, will impose the |
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| 188 | 188 | | total amount published under Section 26.04(e)(3)(C), less any |
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| 189 | 189 | | amount of additional sales and use tax revenue that will be used to |
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| 190 | 190 | | pay debt service, or, for a school district, the rate calculated |
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| 191 | 191 | | under Section 44.004(c)(5)(A)(ii)(b), Education Code; and |
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| 192 | 192 | | (2) the rate that, if applied to the total taxable |
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| 193 | 193 | | value, will impose the amount of taxes needed to fund maintenance |
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| 194 | 194 | | and operation expenditures of the taxing unit for the next year. |
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| 195 | 195 | | SECTION 8. Section 26.06(e), Tax Code, is amended to read as |
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| 196 | 196 | | follows: |
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| 197 | 197 | | (e) The meeting to vote on the tax increase may not be |
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| 198 | 198 | | earlier than the third day or later than the seventh [14th] day |
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| 199 | 199 | | after the date of the second public hearing. The meeting must be |
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| 200 | 200 | | held inside the boundaries of the taxing unit in a publicly owned |
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| 201 | 201 | | building or, if a suitable publicly owned building is not |
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| 202 | 202 | | available, in a suitable building to which the public normally has |
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| 203 | 203 | | access. If the governing body does not adopt a tax rate that |
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| 204 | 204 | | exceeds the lower of the rollback tax rate or the effective tax rate |
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| 205 | 205 | | by the seventh [14th] day, it must give a new notice under |
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| 206 | 206 | | Subsection (d) before it may adopt a rate that exceeds the lower of |
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| 207 | 207 | | the rollback tax rate or the effective tax rate. |
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| 208 | 208 | | SECTION 9. Section 26.08, Tax Code, is amended by amending |
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| 209 | 209 | | Subsection (b) and adding Subsection (b-1) to read as follows: |
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| 210 | 210 | | (b) Except as provided by Subsection (b-1), the [The] |
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| 211 | 211 | | governing body shall order that the election be held in the school |
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| 212 | 212 | | district on the uniform election date prescribed by [a date not less |
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| 213 | 213 | | than 30 or more than 90 days after the day on which it adopted the |
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| 214 | 214 | | tax rate.] Section 41.001, Election Code, that occurs in November |
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| 215 | 215 | | of the applicable tax year. The order calling the election may not |
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| 216 | 216 | | be issued later than August 15 [does not apply to the election |
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| 217 | 217 | | unless a date specified by that section falls within the time |
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| 218 | 218 | | permitted by this section]. At the election, the ballots shall be |
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| 219 | 219 | | prepared to permit voting for or against the |
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| 220 | 220 | | proposition: "Approving the ad valorem tax rate of $_____ per $100 |
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| 221 | 221 | | valuation in (name of school district) for the current year, a rate |
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| 222 | 222 | | that is $_____ higher per $100 valuation than the school district |
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| 223 | 223 | | rollback tax rate, for the purpose of (description of purpose of |
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| 224 | 224 | | increase)." The ballot proposition must include the adopted tax |
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| 225 | 225 | | rate and the difference between that rate and the rollback tax rate |
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| 226 | 226 | | in the appropriate places. |
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| 227 | 227 | | (b-1) Notwithstanding Section 41.0011(a), Election Code, an |
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| 228 | 228 | | emergency election under Section 41.0011 of that code at which a |
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| 229 | 229 | | proposition described by Subsection (b) of this section is |
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| 230 | 230 | | submitted to the voters shall be held on any uniform election date. |
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| 231 | 231 | | SECTION 10. Section 41.12(a), Tax Code, is amended to read |
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| 232 | 232 | | as follows: |
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| 233 | 233 | | (a) By July 5 [20], the appraisal review board shall: |
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| 234 | 234 | | (1) hear and determine all or substantially all timely |
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| 235 | 235 | | filed protests; |
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| 236 | 236 | | (2) determine all timely filed challenges; |
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| 237 | 237 | | (3) submit a list of its approved changes in the |
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| 238 | 238 | | records to the chief appraiser; and |
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| 239 | 239 | | (4) approve the records. |
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| 240 | 240 | | SECTION 11. Section 22.23(c), Tax Code, is repealed. |
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| 241 | 241 | | SECTION 12. The changes in law made by this Act apply to the |
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| 242 | 242 | | ad valorem tax rate of a taxing unit beginning with the 2020 tax |
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| 243 | 243 | | year. |
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| 244 | 244 | | SECTION 13. Sections 11.4391(a) and 22.23(a) and (b), Tax |
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| 245 | 245 | | Code, as amended by this Act, apply only to ad valorem taxes imposed |
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| 246 | 246 | | for a tax year beginning on or after January 1, 2020. |
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| 247 | 247 | | SECTION 14. (a) Not later than the 30th day after the date |
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| 248 | 248 | | this section takes effect, the comptroller of public accounts shall |
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| 249 | 249 | | mail a written notice to each appraisal district and the assessor |
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| 250 | 250 | | for each taxing unit in this state of any change made by this Act to |
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| 251 | 251 | | the deadline for complying with a requirement, duty, or function of |
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| 252 | 252 | | an appraisal district or taxing unit. |
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| 253 | 253 | | (b) This section takes effect immediately if this Act |
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| 254 | 254 | | receives a vote of two-thirds of all the members elected to each |
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| 255 | 255 | | house, as provided by Section 39, Article III, Texas Constitution. |
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| 256 | 256 | | If this Act does not receive the vote necessary for immediate |
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| 257 | 257 | | effect, this section takes effect on the 91st day after the last day |
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| 258 | 258 | | of the legislative session. |
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| 259 | 259 | | SECTION 15. Except as otherwise provided by this Act, this |
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| 260 | 260 | | Act takes effect January 1, 2020. |
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