Texas 2019 - 86th Regular

Texas Senate Bill SB1395 Compare Versions

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

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1	1	2019S0286-1 02/26/19
2	2	By: Seliger S.B. No. 1395
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to voter approval of a proposed ad valorem tax rate that
8	8	exceeds the rollback tax rate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 26.08, Tax Code, is
11	11	amended to read as follows:
12	12	Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
13	13	SECTION 2. Sections 26.08(a), (b), (d), (d-1), (d-2), (e),
14	14	and (h), Tax Code, are amended to read as follows:
15	15	(a) If the governing body of a taxing unit [school district]
16	16	adopts a tax rate that exceeds the taxing unit's [district's]
17	17	rollback tax rate, the registered voters of the taxing unit
18	18	[district] at an election held for that purpose must determine
19	19	whether to approve the adopted tax rate. When increased
20	20	expenditure of money by a taxing unit [school district] is
21	21	necessary to respond to a disaster, including a tornado, hurricane,
22	22	flood, or other calamity, but not including a drought, that has
23	23	impacted the taxing unit [a school district] and the governor has
24	24	requested federal disaster assistance for the area in which the
25	25	taxing unit [school district] is located, an election is not
26	26	required under this section to approve the tax rate adopted by the
27	27	governing body for the year following the year in which the disaster
28	28	occurs.
29	29	(b) The governing body shall order that the election be held
30	30	in the taxing unit [school district] on a date not less than 30 or
31	31	more than 90 days after the day on which it adopted the tax rate.
32	32	Section 41.001, Election Code, does not apply to the election
33	33	unless a date specified by that section falls within the time
34	34	permitted by this section. At the election, the ballots shall be
35	35	prepared to permit voting for or against the proposition:
36	36	"Approving the ad valorem tax rate of $_____ per $100 valuation in
37	37	(name of taxing unit [school district]) for the current year, a rate
38	38	that is $_____ higher per $100 valuation than the [school district]
39	39	rollback tax rate of (name of taxing unit), for the purpose of
40	40	(description of purpose of increase)." The ballot proposition must
41	41	include the adopted tax rate and the difference between that rate
42	42	and the rollback tax rate in the appropriate places.
43	43	(d) If the proposition is not approved as provided by
44	44	Subsection (c), the governing body may not adopt a tax rate for the
45	45	taxing unit [school district] for the current year that exceeds the
46	46	taxing unit's [school district's] rollback tax rate.
47	47	(d-1) If, after tax bills for the taxing unit [school
48	48	district] have been mailed, a proposition to approve the taxing
49	49	unit's [school district's] adopted tax rate is not approved by the
50	50	voters of the taxing unit [district] at an election held under this
51	51	section, on subsequent adoption of a new tax rate by the governing
52	52	body of the taxing unit [district], the assessor for the taxing unit
53	53	[school] shall prepare and mail corrected tax bills. The assessor
54	54	shall include with each bill a brief explanation of the reason for
55	55	and effect of the corrected bill. The date on which the taxes
56	56	become delinquent for the year is extended by a number of days equal
57	57	to the number of days between the date the first tax bills were sent
58	58	and the date the corrected tax bills were sent.
59	59	(d-2) If a property owner pays taxes calculated using the
60	60	originally adopted tax rate of the taxing unit [school district]
61	61	and the proposition to approve the adopted tax rate is not approved
62	62	by the voters, the taxing unit [school district] shall refund the
63	63	difference between the amount of taxes paid and the amount due under
64	64	the subsequently adopted rate if the difference between the amount
65	65	of taxes paid and the amount due under the subsequent rate is $1 or
66	66	more. If the difference between the amount of taxes paid and the
67	67	amount due under the subsequent rate is less than $1, the taxing
68	68	unit [school district] shall refund the difference on request of
69	69	the taxpayer. An application for a refund of less than $1 must be
70	70	made within 90 days after the date the refund becomes due or the
71	71	taxpayer forfeits the right to the refund.
72	72	(e) For purposes of this section, local tax funds dedicated
73	73	to a junior college district under Section 45.105(e), Education
74	74	Code, shall be eliminated from the calculation of the tax rate
75	75	adopted by the governing body of a [the] school district. However,
76	76	the funds dedicated to the junior college district are subject to
77	77	Section 26.085.
78	78	(h) For purposes of this section, increases in taxable
79	79	values and tax levies occurring within a reinvestment zone under
80	80	Chapter 311 (Tax Increment Financing Act), in which a school [the]
81	81	district is a participant, shall be eliminated from the calculation
82	82	of the tax rate adopted by the governing body of the school
83	83	district.
84	84	SECTION 3. Section 26.16(d), Tax Code, is amended to read as
85	85	follows:
86	86	(d) The county assessor-collector shall post immediately
87	87	below the table prescribed by Subsection (c) the following
88	88	statement:
89	89	"The county is providing this table of property tax rate
90	90	information as a service to the residents of the county. Each
91	91	individual taxing unit is responsible for calculating the property
92	92	tax rates listed in this table pertaining to that taxing unit and
93	93	providing that information to the county.
94	94	"The adopted tax rate is the tax rate adopted by the governing
95	95	body of a taxing unit.
96	96	"The maintenance and operations rate is the component of the
97	97	adopted tax rate of a taxing unit that will impose the amount of
98	98	taxes needed to fund maintenance and operation expenditures of the
99	99	unit for the following year.
100	100	"The debt rate is the component of the adopted tax rate of a
101	101	taxing unit that will impose the amount of taxes needed to fund the
102	102	unit's debt service for the following year.
103	103	"The effective tax rate is the tax rate that would generate
104	104	the same amount of revenue in the current tax year as was generated
105	105	by a taxing unit's adopted tax rate in the preceding tax year from
106	106	property that is taxable in both the current tax year and the
107	107	preceding tax year.
108	108	"The effective maintenance and operations rate is the tax
109	109	rate that would generate the same amount of revenue for maintenance
110	110	and operations in the current tax year as was generated by a taxing
111	111	unit's maintenance and operations rate in the preceding tax year
112	112	from property that is taxable in both the current tax year and the
113	113	preceding tax year.
114	114	"The rollback tax rate is the highest tax rate a taxing unit
115	115	may adopt before requiring voter approval at an election. An [In
116	116	the case of a taxing unit other than a school district, the voters
117	117	by petition may require that a rollback election be held if the unit
118	118	adopts a tax rate in excess of the unit's rollback tax rate. In the
119	119	case of a school district, an] election will automatically be held
120	120	if a taxing unit [the district] wishes to adopt a tax rate in excess
121	121	of the unit's [district's] rollback tax rate."
122	122	SECTION 4. Sections 31.12(a) and (b), Tax Code, are amended
123	123	to read as follows:
124	124	(a) If a refund of a tax provided by Section 11.431(b),
125	125	26.08(d-2) [26.07(g)], 26.15(f), 31.11, 31.111, or 31.112 is paid
126	126	on or before the 60th day after the date the liability for the
127	127	refund arises, no interest is due on the amount refunded. If not
128	128	paid on or before that 60th day, the amount of the tax to be refunded
129	129	accrues interest at a rate of one percent for each month or part of a
130	130	month that the refund is unpaid, beginning with the date on which
131	131	the liability for the refund arises.
132	132	(b) For purposes of this section, liability for a refund
133	133	arises:
134	134	(1) if the refund is required by Section 11.431(b), on
135	135	the date the chief appraiser notifies the collector for the unit of
136	136	the approval of the late homestead exemption;
137	137	(2) if the refund is required by Section 26.08(d-2)
138	138	[26.07(g)], on the date the results of the election to reduce the
139	139	tax rate are certified;
140	140	(3) if the refund is required by Section 26.15(f):
141	141	(A) for a correction to the tax roll made under
142	142	Section 26.15(b), on the date the change in the tax roll is
143	143	certified to the assessor for the taxing unit under Section 25.25;
144	144	or
145	145	(B) for a correction to the tax roll made under
146	146	Section 26.15(c), on the date the change in the tax roll is ordered
147	147	by the governing body of the taxing unit;
148	148	(4) if the refund is required by Section 31.11, on the
149	149	date the auditor for the taxing unit determines that the payment was
150	150	erroneous or excessive or, if the amount of the refund exceeds the
151	151	applicable amount specified by Section 31.11(a), on the date the
152	152	governing body of the unit approves the refund;
153	153	(5) if the refund is required by Section 31.111, on the
154	154	date the collector for the taxing unit determines that the payment
155	155	was erroneous; or
156	156	(6) if the refund is required by Section 31.112, on the
157	157	date required by Section 31.112(d) or (e), as applicable.
158	158	SECTION 5. Section 33.08(b), Tax Code, is amended to read as
159	159	follows:
160	160	(b) The governing body of the taxing unit or appraisal
161	161	district, in the manner required by law for official action, may
162	162	provide that taxes that become delinquent on or after June 1 under
163	163	Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
164	164	31.04, or 42.42 incur an additional penalty to defray costs of
165	165	collection. The amount of the penalty may not exceed the amount of
166	166	the compensation specified in the applicable contract with an
167	167	attorney under Section 6.30 to be paid in connection with the
168	168	collection of the delinquent taxes.
169	169	SECTION 6. Section 130.016(b), Education Code, is amended
170	170	to read as follows:
171	171	(b) If the board of trustees of an independent school
172	172	district that divests itself of the management, control, and
173	173	operation of a junior college district under this section or under
174	174	Section 130.017 [of this code] was authorized by [Subsection (e)
175	175	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
176	176	this code] to dedicate a portion of its tax levy to the junior
177	177	college district before the divestment, the junior college district
178	178	may levy an ad valorem tax from and after the divestment. In the
179	179	first two years in which the junior college district levies an ad
180	180	valorem tax, the tax rate adopted by the governing body may not
181	181	exceed the rate that, if applied to the total taxable value
182	182	submitted to the governing body under Section 26.04, Tax Code,
183	183	would impose an amount equal to the amount of taxes of the school
184	184	district dedicated to the junior college under [Subsection (e) of]
185	185	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
186	186	in the last dedication before the divestment. In subsequent years,
187	187	the tax rate of the junior college district is subject to Section
188	188	26.08 [26.07], Tax Code.
189	189	SECTION 7. Sections 281.124(d) and (e), Health and Safety
190	190	Code, are amended to read as follows:
191	191	(d) If a majority of the votes cast in the election favor the
192	192	proposition, the tax rate for the specified tax year is the rate
193	193	approved by the voters, and that rate is not subject to [a rollback
194	194	election under] Section 26.08 [26.07], Tax Code. The board shall
195	195	adopt the tax rate as provided by Chapter 26, Tax Code.
196	196	(e) If the proposition is not approved as provided by
197	197	Subsection (c), the board may not adopt a tax rate for the district
198	198	for the specified tax year that exceeds the rate that was not
199	199	approved, and Section 26.08 [26.07], Tax Code, applies to the
200	200	adopted rate if that rate exceeds the district's rollback tax rate.
201	201	SECTION 8. Section 140.010(e), Local Government Code, is
202	202	amended to read as follows:
203	203	(e) A county or municipality that proposes a property tax
204	204	rate that exceeds the lower of the effective tax rate or the
205	205	rollback tax rate shall provide the following notice:
206	206	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
207	207	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
208	208	"A tax rate of $_____ per $100 valuation has been proposed for
209	209	adoption by the governing body of (insert name of county or
210	210	municipality). This rate exceeds the lower of the effective or
211	211	rollback tax rate, and state law requires that two public hearings
212	212	be held by the governing body before adopting the proposed tax rate.
213	213	The governing body of (insert name of county or municipality)
214	214	proposes to use revenue attributable to the tax rate increase for
215	215	the purpose of (description of purpose of increase).
216	216	PROPOSED TAX RATE$______ per $100
217	217	PRECEDING YEAR'S TAX RATE$______ per $100
218	218	EFFECTIVE TAX RATE$______ per $100
219	219	ROLLBACK TAX RATE$______ per $100
220	220	"The effective tax rate is the total tax rate needed to raise the
221	221	same amount of property tax revenue for (insert name of county or
222	222	municipality) from the same properties in both the (insert
223	223	preceding tax year) tax year and the (insert current tax year) tax
224	224	year.
225	225	"The rollback tax rate is the highest tax rate that (insert name of
226	226	county or municipality) may adopt without holding [before voters
227	227	are entitled to petition for] an election to ratify [limit] the rate
228	228	[that may be approved to the rollback rate].
229	229	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
230	230	FOLLOWS:
231	231	property tax amount = (rate) x (taxable value of your property) /
232	232	100
233	233	"For assistance or detailed information about tax calculations,
234	234	please contact:
235	235	(insert name of county or municipal tax assessor-collector)
236	236	(insert name of county or municipality) tax
237	237	assessor-collector
238	238	(insert address)
239	239	(insert telephone number)
240	240	(insert e-mail address)
241	241	(insert Internet website address, if applicable)
242	242	"You are urged to attend and express your views at the following
243	243	public hearings on the proposed tax rate:
244	244	First Hearing: (insert date and time) at (insert location of
245	245	meeting).
246	246	Second Hearing: (insert date and time) at (insert location
247	247	of meeting)."
248	248	SECTION 9. Section 1101.254(f), Special District Local Laws
249	249	Code, is amended to read as follows:
250	250	(f) This section does not affect the applicability of [any
251	251	rights district voters may have to petition for an election under]
252	252	Section 26.08 [26.07], Tax Code, to the district's tax rate, except
253	253	that if district voters approve a tax rate increase under this
254	254	section, [the voters may not petition for an election under]
255	255	Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
256	256	for that year.
257	257	SECTION 10. Sections 1122.2522, 3828.157, and 8876.152,
258	258	Special District Local Laws Code, are amended to read as follows:
259	259	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
260	260	[(a)] If in any year the board adopts a tax rate that exceeds the
261	261	rollback tax rate calculated as provided by Chapter 26, Tax Code,
262	262	[the qualified voters of the district by petition may require that]
263	263	an election under Section 26.08 of that code must be held to
264	264	determine whether or not to approve [reduce] the tax rate adopted by
265	265	the board for that year [to the rollback tax rate].
266	266	[(b) To the extent a conflict exists between this section
267	267	and a provision of the Tax Code, the provision of the Tax Code
268	268	prevails.]
269	269	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
270	270	PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
271	271	not apply to a tax imposed under Section 3828.153 or 3828.156.
272	272	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
273	273	(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
274	274	not apply to a tax imposed by the district.
275	275	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
276	276	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
277	277	78th Legislature, Regular Session, 2003, applies] to the district.
278	278	SECTION 11. Section 49.107(g), Water Code, is amended to
279	279	read as follows:
280	280	(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
281	281	not apply to a tax levied and collected under this section or an ad
282	282	valorem tax levied and collected for the payment of the interest on
283	283	and principal of bonds issued by a district.
284	284	SECTION 12. Section 49.108(f), Water Code, is amended to
285	285	read as follows:
286	286	(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
287	287	not apply to a tax levied and collected for payments made under a
288	288	contract approved in accordance with this section.
289	289	SECTION 13. Sections 49.236(a) and (d), Water Code, as
290	290	added by Chapter 335 (S.B. 392), Acts of the 78th Legislature,
291	291	Regular Session, 2003, are amended to read as follows:
292	292	(a) Before the board adopts an ad valorem tax rate for the
293	293	district for debt service, operation and maintenance purposes, or
294	294	contract purposes, the board shall give notice of each meeting of
295	295	the board at which the adoption of a tax rate will be considered.
296	296	The notice must:
297	297	(1) contain a statement in substantially the following
298	298	form:
299	299	"NOTICE OF PUBLIC HEARING ON TAX RATE
300	300	"The (name of the district) will hold a public hearing on a
301	301	proposed tax rate for the tax year (year of tax levy) on (date and
302	302	time) at (meeting place). Your individual taxes may increase or
303	303	decrease, depending on the change in the taxable value of your
304	304	property in relation to the change in taxable value of all other
305	305	property and the tax rate that is adopted.
306	306	"(Names of all board members and, if a vote was taken, an
307	307	indication of how each voted on the proposed tax rate and an
308	308	indication of any absences.)";
309	309	(2) contain the following information:
310	310	(A) the district's total adopted tax rate for the
311	311	preceding year and the proposed tax rate, expressed as an amount per
312	312	$100;
313	313	(B) the difference, expressed as an amount per
314	314	$100 and as a percent increase or decrease, as applicable, in the
315	315	proposed tax rate compared to the adopted tax rate for the preceding
316	316	year;
317	317	(C) the average appraised value of a residence
318	318	homestead in the district in the preceding year and in the current
319	319	year; the district's total homestead exemption, other than an
320	320	exemption available only to disabled persons or persons 65 years of
321	321	age or older, applicable to that appraised value in each of those
322	322	years; and the average taxable value of a residence homestead in the
323	323	district in each of those years, disregarding any homestead
324	324	exemption available only to disabled persons or persons 65 years of
325	325	age or older;
326	326	(D) the amount of tax that would have been
327	327	imposed by the district in the preceding year on a residence
328	328	homestead appraised at the average appraised value of a residence
329	329	homestead in that year, disregarding any homestead exemption
330	330	available only to disabled persons or persons 65 years of age or
331	331	older;
332	332	(E) the amount of tax that would be imposed by the
333	333	district in the current year on a residence homestead appraised at
334	334	the average appraised value of a residence homestead in that year,
335	335	disregarding any homestead exemption available only to disabled
336	336	persons or persons 65 years of age or older, if the proposed tax
337	337	rate is adopted; [and]
338	338	(F) the difference between the amounts of tax
339	339	calculated under Paragraphs (D) and (E), expressed in dollars and
340	340	cents and described as the annual percentage increase or decrease,
341	341	as applicable, in the tax to be imposed by the district on the
342	342	average residence homestead in the district in the current year if
343	343	the proposed tax rate is adopted; and
344	344	(G) if the proposed combined debt service,
345	345	operation and maintenance, and contract tax rate exceeds the
346	346	rollback tax rate, a description of the purpose of the proposed tax
347	347	increase; and
348	348	(3) contain a statement in substantially the following
349	349	form:
350	350	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
351	351	"If operation and maintenance taxes on the average residence
352	352	homestead increase by more than eight percent, [the qualified
353	353	voters of the district by petition may require that] an election
354	354	must be held to determine whether to ratify [reduce] the operation
355	355	and maintenance tax rate [to the rollback tax rate] under Section
356	356	49.236(d), Water Code."
357	357	(d) If the governing body of a district adopts a combined
358	358	debt service, operation and maintenance, and contract tax rate that
359	359	exceeds the rollback tax rate, [would impose more than 1.08 times
360	360	the amount of tax imposed by the district in the preceding year on a
361	361	residence homestead appraised at the average appraised value of a
362	362	residence homestead in the district in that year, disregarding any
363	363	homestead exemption available only to disabled persons or persons
364	364	65 years of age or older, the qualified voters of the district by
365	365	petition may require that] an election must be held to determine
366	366	whether [or not] to ratify [reduce] the tax rate adopted for the
367	367	current year [to the rollback tax rate] in accordance with the
368	368	procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
369	369	26.081], Tax Code. For purposes of Sections 26.08(b)-(d)
370	370	[26.07(b)-(g)] and this section [subsection], the rollback tax rate
371	371	is the sum of the following tax rates:
372	372	(1) the current year's debt service tax rate;
373	373	(2) the current year's [and] contract tax rate; and
374	374	(3) [rates plus] the operation and maintenance tax
375	375	rate that would impose 1.08 times the amount of the operation and
376	376	maintenance tax imposed by the district in the preceding year on a
377	377	residence homestead appraised at the average appraised value of a
378	378	residence homestead in the district in that year, disregarding any
379	379	homestead exemption available only to disabled persons or persons
380	380	65 years of age or older.
381	381	SECTION 14. The following provisions are repealed:
382	382	(1) Section 1063.255, Special District Local Laws
383	383	Code;
384	384	(2) Section 26.07, Tax Code;
385	385	(3) Section 49.236, Water Code, as added by Chapter
386	386	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
387	387	2003; and
388	388	(4) Section 49.2361, Water Code.
389	389	SECTION 15. (a) The change in law made by this Act applies
390	390	to the ad valorem tax rate of a taxing unit beginning with the 2019
391	391	tax year, except as provided by Subsection (b) of this section.
392	392	(b) If the governing body of a taxing unit adopted an ad
393	393	valorem tax rate for the taxing unit for the 2019 tax year before
394	394	the effective date of this Act, the change in law made by this Act
395	395	applies to the ad valorem tax rate of that taxing unit beginning
396	396	with the 2020 tax year, and the law in effect when the tax rate was
397	397	adopted applies to the 2019 tax year with respect to that taxing
398	398	unit.
399	399	SECTION 16. This Act takes effect immediately if it
400	400	receives a vote of two-thirds of all the members elected to each
401	401	house, as provided by Section 39, Article III, Texas Constitution.
402	402	If this Act does not receive the vote necessary for immediate
403	403	effect, this Act takes effect on the 91st day after the last day of
404	404	the legislative session.