Texas 2019 - 86th Regular

Texas Senate Bill SB1430 Compare Versions

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1	1	86R13519 CBH-F
2	2	By: Hancock, Bettencourt S.B. No. 1430
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to clarifying certain terminology, including terminology
8	8	applicable to tax rate calculations, in relation to the ad valorem
9	9	tax system.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 42.2522(e), Education Code, is amended
12	12	to read as follows:
13	13	(e) The commissioner shall notify school districts as soon
14	14	as practicable as to the availability of funds under this section.
15	15	For purposes of computing a voter approval [rollback] tax rate
16	16	under Section 26.08, Tax Code, a district shall adjust the
17	17	district's tax rate limit to reflect assistance received under this
18	18	section.
19	19	SECTION 2. Sections 44.004(c) and (i), Education Code, are
20	20	amended to read as follows:
21	21	(c) The notice of public meeting to discuss and adopt the
22	22	budget and the proposed tax rate may not be smaller than one-quarter
23	23	page of a standard-size or a tabloid-size newspaper, and the
24	24	headline on the notice must be in 18-point or larger type. Subject
25	25	to Subsection (d), the notice must:
26	26	(1) contain a statement in the following form:
27	27	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
28	28	"The (name of school district) will hold a public meeting at
29	29	(time, date, year) in (name of room, building, physical location,
30	30	city, state). The purpose of this meeting is to discuss the school
31	31	district's budget that will determine the tax rate that will be
32	32	adopted. Public participation in the discussion is invited." The
33	33	statement of the purpose of the meeting must be in bold type. In
34	34	reduced type, the notice must state: "The tax rate that is
35	35	ultimately adopted at this meeting or at a separate meeting at a
36	36	later date may not exceed the proposed rate shown below unless the
37	37	district publishes a revised notice containing the same information
38	38	and comparisons set out below and holds another public meeting to
39	39	discuss the revised notice.";
40	40	(2) contain a section entitled "Comparison of Proposed
41	41	Budget with Last Year's Budget," which must show the difference,
42	42	expressed as a percent increase or decrease, as applicable, in the
43	43	amounts budgeted for the preceding fiscal year and the amount
44	44	budgeted for the fiscal year that begins in the current tax year for
45	45	each of the following:
46	46	(A) maintenance and operations;
47	47	(B) debt service; and
48	48	(C) total expenditures;
49	49	(3) contain a section entitled "Total Appraised Value
50	50	and Total Taxable Value," which must show the total appraised value
51	51	and the total taxable value of all property and the total appraised
52	52	value and the total taxable value of new property taxable by the
53	53	district in the preceding tax year and the current tax year as
54	54	calculated under Section 26.04, Tax Code;
55	55	(4) contain a statement of the total amount of the
56	56	outstanding and unpaid bonded indebtedness of the school district;
57	57	(5) contain a section entitled "Comparison of Proposed
58	58	Rates with Last Year's Rates," which must:
59	59	(A) show in rows the tax rates described by
60	60	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
61	61	property, for columns entitled "Maintenance & Operations,"
62	62	"Interest & Sinking Fund," and "Total," which is the sum of
63	63	"Maintenance & Operations" and "Interest & Sinking Fund":
64	64	(i) the school district's "Last Year's
65	65	Rate";
66	66	(ii) the "Rate to Maintain Same Level of
67	67	Maintenance & Operations Revenue & Pay Debt Service," which:
68	68	(a) in the case of "Maintenance &
69	69	Operations," is the tax rate that, when applied to the current
70	70	taxable value for the district, as certified by the chief appraiser
71	71	under Section 26.01, Tax Code, and as adjusted to reflect changes
72	72	made by the chief appraiser as of the time the notice is prepared,
73	73	would impose taxes in an amount that, when added to state funds to
74	74	be distributed to the district under Chapter 42, would provide the
75	75	same amount of maintenance and operations taxes and state funds
76	76	distributed under Chapter 42 per student in average daily
77	77	attendance for the applicable school year that was available to the
78	78	district in the preceding school year; and
79	79	(b) in the case of "Interest & Sinking
80	80	Fund," is the tax rate that, when applied to the current taxable
81	81	value for the district, as certified by the chief appraiser under
82	82	Section 26.01, Tax Code, and as adjusted to reflect changes made by
83	83	the chief appraiser as of the time the notice is prepared, and when
84	84	multiplied by the district's anticipated collection rate, would
85	85	impose taxes in an amount that, when added to state funds to be
86	86	distributed to the district under Chapter 46 and any excess taxes
87	87	collected to service the district's debt during the preceding tax
88	88	year but not used for that purpose during that year, would provide
89	89	the amount required to service the district's debt; and
90	90	(iii) the "Proposed Rate";
91	91	(B) contain fourth and fifth columns aligned with
92	92	the columns required by Paragraph (A) that show, for each row
93	93	required by Paragraph (A):
94	94	(i) the "Local Revenue per Student," which
95	95	is computed by multiplying the district's total taxable value of
96	96	property, as certified by the chief appraiser for the applicable
97	97	school year under Section 26.01, Tax Code, and as adjusted to
98	98	reflect changes made by the chief appraiser as of the time the
99	99	notice is prepared, by the total tax rate, and dividing the product
100	100	by the number of students in average daily attendance in the
101	101	district for the applicable school year; and
102	102	(ii) the "State Revenue per Student," which
103	103	is computed by determining the amount of state aid received or to be
104	104	received by the district under Chapters 42, 43, and 46 and dividing
105	105	that amount by the number of students in average daily attendance in
106	106	the district for the applicable school year; and
107	107	(C) contain an asterisk after each calculation
108	108	for "Interest & Sinking Fund" and a footnote to the section that, in
109	109	reduced type, states "The Interest & Sinking Fund tax revenue is
110	110	used to pay for bonded indebtedness on construction, equipment, or
111	111	both. The bonds, and the tax rate necessary to pay those bonds,
112	112	were approved by the voters of this district.";
113	113	(6) contain a section entitled "Comparison of Proposed
114	114	Levy with Last Year's Levy on Average Residence," which must:
115	115	(A) show in rows the information described by
116	116	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
117	117	entitled "Last Year" and "This Year":
118	118	(i) "Average Market Value of Residences,"
119	119	determined using the same group of residences for each year;
120	120	(ii) "Average Taxable Value of Residences,"
121	121	determined after taking into account the limitation on the
122	122	appraised value of residences under Section 23.23, Tax Code, and
123	123	after subtracting all homestead exemptions applicable in each year,
124	124	other than exemptions available only to disabled persons or persons
125	125	65 years of age or older or their surviving spouses, and using the
126	126	same group of residences for each year;
127	127	(iii) "Last Year's Rate Versus Proposed
128	128	Rate per $100 Value"; and
129	129	(iv) "Taxes Due on Average Residence,"
130	130	determined using the same group of residences for each year; and
131	131	(B) contain the following information: "Increase
132	132	(Decrease) in Taxes" expressed in dollars and cents, which is
133	133	computed by subtracting the "Taxes Due on Average Residence" for
134	134	the preceding tax year from the "Taxes Due on Average Residence" for
135	135	the current tax year;
136	136	(7) contain the following statement in bold
137	137	print: "Under state law, the dollar amount of school taxes imposed
138	138	on the residence of a person 65 years of age or older or of the
139	139	surviving spouse of such a person, if the surviving spouse was 55
140	140	years of age or older when the person died, may not be increased
141	141	above the amount paid in the first year after the person turned 65,
142	142	regardless of changes in tax rate or property value.";
143	143	(8) contain the following statement in bold
144	144	print: "Notice of Voter Approval Tax [Rollback] Rate: The
145	145	highest tax rate the district can adopt before requiring voter
146	146	approval at an election is (the school district voter approval tax
147	147	[rollback] rate determined under Section 26.08, Tax Code). This
148	148	election will be automatically held if the district adopts a rate in
149	149	excess of the voter approval tax [rollback] rate of (the school
150	150	district voter approval tax [rollback] rate)."; and
151	151	(9) contain a section entitled "Fund Balances," which
152	152	must include the estimated amount of interest and sinking fund
153	153	balances and the estimated amount of maintenance and operation or
154	154	general fund balances remaining at the end of the current fiscal
155	155	year that are not encumbered with or by corresponding debt
156	156	obligation, less estimated funds necessary for the operation of the
157	157	district before the receipt of the first payment under Chapter 42 in
158	158	the succeeding school year.
159	159	(i) A school district that uses a certified estimate, as
160	160	authorized by Subsection (h), may adopt a budget at the public
161	161	meeting designated in the notice prepared using the estimate, but
162	162	the district may not adopt a tax rate before the district receives
163	163	the certified appraisal roll for the district required by Section
164	164	26.01(a), Tax Code. After receipt of the certified appraisal roll,
165	165	the district must publish a revised notice and hold another public
166	166	meeting before the district may adopt a tax rate that exceeds:
167	167	(1) the rate proposed in the notice prepared using the
168	168	estimate; or
169	169	(2) the district's voter approval tax [rollback] rate
170	170	determined under Section 26.08, Tax Code, using the certified
171	171	appraisal roll.
172	172	SECTION 3. Section 45.261(e), Education Code, is amended to
173	173	read as follows:
174	174	(e) Any part of a school district's tax rate attributable to
175	175	producing revenue for purposes of Subsection (c)(1) is considered
176	176	part of the district's:
177	177	(1) current debt rate for purposes of computing a
178	178	voter approval [rollback] tax rate under Section 26.08, Tax Code;
179	179	and
180	180	(2) interest and sinking fund tax rate.
181	181	SECTION 4. Section 281.107(j), Health and Safety Code, is
182	182	amended to read as follows:
183	183	(j) The portion of the rate of ad valorem tax that is to be
184	184	levied and assessed each year by or for the district that is
185	185	allocated by the district to the payment of the principal of and the
186	186	interest on bonds and other obligations or the maintenance of
187	187	reserves therefor in accordance with this section shall be applied
188	188	as a payment on current debt in calculating the current debt rate
189	189	under the applicable voter approval tax rate [rollback] provisions
190	190	of Chapter 26, Tax Code.
191	191	SECTION 5. The heading to Section 281.124, Health and
192	192	Safety Code, is amended to read as follows:
193	193	Sec. 281.124. ELECTION TO APPROVE TAX RATE IN EXCESS OF
194	194	VOTER APPROVAL [ROLLBACK] TAX RATE.
195	195	SECTION 6. Sections 281.124(b), (c), (d), and (e), Health
196	196	and Safety Code, are amended to read as follows:
197	197	(b) The board may hold an election at which the registered
198	198	voters of the district may approve a tax rate for the current tax
199	199	year that exceeds the district's voter approval [rollback] tax rate
200	200	for the year computed under Chapter 26, Tax Code, by a specific rate
201	201	stated in dollars and cents per $100 of taxable value.
202	202	(c) An election under this section must be held at least 180
203	203	days before the date on which the district's tax rate is adopted by
204	204	the board. At the election, the ballot shall be prepared to permit
205	205	voting for or against the proposition: "Approving the ad valorem
206	206	tax rate of $ (insert total proposed tax rate) per $100 valuation in
207	207	(insert district name) for the (insert current tax year) tax year, a
208	208	rate that exceeds the district's voter approval [rollback] tax
209	209	rate. The proposed ad valorem tax rate exceeds the ad valorem tax
210	210	rate most recently adopted by the district by $ (insert difference
211	211	between proposed and preceding year's tax rates) per $100
212	212	valuation."
213	213	(d) If a majority of the votes cast in the election favor the
214	214	proposition, the tax rate for the specified tax year is the rate
215	215	approved by the voters, and that rate is not subject to a voter
216	216	approval tax rate [rollback] election under Section 26.07, Tax
217	217	Code. The board shall adopt the tax rate as provided by Chapter 26,
218	218	Tax Code.
219	219	(e) If the proposition is not approved as provided by
220	220	Subsection (d) [(c)], the board may not adopt a tax rate for the
221	221	district for the specified tax year that exceeds the rate that was
222	222	not approved, and Section 26.07, Tax Code, applies to the adopted
223	223	rate if that rate exceeds the voter approval [rollback] tax rate.
224	224	SECTION 7. Section 102.007(d), Local Government Code, is
225	225	amended to read as follows:
226	226	(d) An adopted budget must contain a cover page that
227	227	includes:
228	228	(1) one of the following statements in 18-point or
229	229	larger type that accurately describes the adopted budget:
230	230	(A) "This budget will raise more revenue from
231	231	property taxes than last year's budget by an amount of (insert total
232	232	dollar amount of increase), which is a (insert percentage increase)
233	233	percent increase from last year's budget. The property tax revenue
234	234	to be raised from new property added to the tax roll this year is
235	235	(insert amount computed by multiplying the proposed tax rate by the
236	236	value of new property added to the roll).";
237	237	(B) "This budget will raise less revenue from
238	238	property taxes than last year's budget by an amount of (insert total
239	239	dollar amount of decrease), which is a (insert percentage decrease)
240	240	percent decrease from last year's budget. The property tax revenue
241	241	to be raised from new property added to the tax roll this year is
242	242	(insert amount computed by multiplying the proposed tax rate by the
243	243	value of new property added to the roll)."; or
244	244	(C) "This budget will raise the same amount of
245	245	revenue from property taxes as last year's budget. The property
246	246	tax revenue to be raised from new property added to the tax roll
247	247	this year is (insert amount computed by multiplying the proposed
248	248	tax rate by the value of new property added to the roll).";
249	249	(2) the record vote of each member of the governing
250	250	body by name voting on the adoption of the budget;
251	251	(3) the municipal property tax rates for the preceding
252	252	fiscal year, and each municipal property tax rate that has been
253	253	adopted or calculated for the current fiscal year, including:
254	254	(A) the property tax rate;
255	255	(B) the effective tax rate;
256	256	(C) the effective maintenance and operations tax
257	257	rate;
258	258	(D) the voter approval [rollback] tax rate; and
259	259	(E) the debt rate; and
260	260	(4) the total amount of municipal debt obligations.
261	261	SECTION 8. Section 111.008(d), Local Government Code, is
262	262	amended to read as follows:
263	263	(d) An adopted budget must contain a cover page that
264	264	includes:
265	265	(1) one of the following statements in 18-point or
266	266	larger type that accurately describes the adopted budget:
267	267	(A) "This budget will raise more revenue from
268	268	property taxes than last year's budget by an amount of (insert total
269	269	dollar amount of increase), which is a (insert percentage increase)
270	270	percent increase from last year's budget. The property tax revenue
271	271	to be raised from new property added to the tax roll this year is
272	272	(insert amount computed by multiplying the proposed tax rate by the
273	273	value of new property added to the roll).";
274	274	(B) "This budget will raise less revenue from
275	275	property taxes than last year's budget by an amount of (insert total
276	276	dollar amount of decrease), which is a (insert percentage decrease)
277	277	percent decrease from last year's budget. The property tax revenue
278	278	to be raised from new property added to the tax roll this year is
279	279	(insert amount computed by multiplying the proposed tax rate by the
280	280	value of new property added to the roll)."; or
281	281	(C) "This budget will raise the same amount of
282	282	revenue from property taxes as last year's budget. The property
283	283	tax revenue to be raised from new property added to the tax roll
284	284	this year is (insert amount computed by multiplying the proposed
285	285	tax rate by the value of new property added to the roll).";
286	286	(2) the record vote of each member of the
287	287	commissioners court by name voting on the adoption of the budget;
288	288	(3) the county property tax rates for the preceding
289	289	fiscal year, and each county property tax rate that has been adopted
290	290	or calculated for the current fiscal year, including:
291	291	(A) the property tax rate;
292	292	(B) the effective tax rate;
293	293	(C) the effective maintenance and operations tax
294	294	rate;
295	295	(D) the voter approval [rollback] tax rate; and
296	296	(E) the debt rate; and
297	297	(4) the total amount of county debt obligations.
298	298	SECTION 9. Section 111.039(d), Local Government Code, is
299	299	amended to read as follows:
300	300	(d) An adopted budget must contain a cover page that
301	301	includes:
302	302	(1) one of the following statements in 18-point or
303	303	larger type that accurately describes the adopted budget:
304	304	(A) "This budget will raise more revenue from
305	305	property taxes than last year's budget by an amount of (insert total
306	306	dollar amount of increase), which is a (insert percentage increase)
307	307	percent increase from last year's budget. The property tax revenue
308	308	to be raised from new property added to the tax roll this year is
309	309	(insert amount computed by multiplying the proposed tax rate by the
310	310	value of new property added to the roll).";
311	311	(B) "This budget will raise less revenue from
312	312	property taxes than last year's budget by an amount of (insert total
313	313	dollar amount of decrease), which is a (insert percentage decrease)
314	314	percent decrease from last year's budget. The property tax revenue
315	315	to be raised from new property added to the tax roll this year is
316	316	(insert amount computed by multiplying the proposed tax rate by the
317	317	value of new property added to the roll)."; or
318	318	(C) "This budget will raise the same amount of
319	319	revenue from property taxes as last year's budget. The property
320	320	tax revenue to be raised from new property added to the tax roll
321	321	this year is (insert amount computed by multiplying the proposed
322	322	tax rate by the value of new property added to the roll).";
323	323	(2) the record vote of each member of the
324	324	commissioners court by name voting on the adoption of the budget;
325	325	(3) the county property tax rates for the preceding
326	326	fiscal year, and each county property tax rate that has been adopted
327	327	or calculated for the current fiscal year, including:
328	328	(A) the property tax rate;
329	329	(B) the effective tax rate;
330	330	(C) the effective maintenance and operations tax
331	331	rate;
332	332	(D) the voter approval [rollback] tax rate; and
333	333	(E) the debt rate; and
334	334	(4) the total amount of county debt obligations.
335	335	SECTION 10. Section 111.068(c), Local Government Code, is
336	336	amended to read as follows:
337	337	(c) An adopted budget must contain a cover page that
338	338	includes:
339	339	(1) one of the following statements in 18-point or
340	340	larger type that accurately describes the adopted budget:
341	341	(A) "This budget will raise more revenue from
342	342	property taxes than last year's budget by an amount of (insert total
343	343	dollar amount of increase), which is a (insert percentage increase)
344	344	percent increase from last year's budget. The property tax revenue
345	345	to be raised from new property added to the tax roll this year is
346	346	(insert amount computed by multiplying the proposed tax rate by the
347	347	value of new property added to the roll).";
348	348	(B) "This budget will raise less revenue from
349	349	property taxes than last year's budget by an amount of (insert total
350	350	dollar amount of decrease), which is a (insert percentage decrease)
351	351	percent decrease from last year's budget. The property tax revenue
352	352	to be raised from new property added to the tax roll this year is
353	353	(insert amount computed by multiplying the proposed tax rate by the
354	354	value of new property added to the roll)."; or
355	355	(C) "This budget will raise the same amount of
356	356	revenue from property taxes as last year's budget. The property
357	357	tax revenue to be raised from new property added to the tax roll
358	358	this year is (insert amount computed by multiplying the proposed
359	359	tax rate by the value of new property added to the roll).";
360	360	(2) the record vote of each member of the
361	361	commissioners court by name voting on the adoption of the budget;
362	362	(3) the county property tax rates for the preceding
363	363	fiscal year, and each county property tax rate that has been adopted
364	364	or calculated for the current fiscal year, including:
365	365	(A) the property tax rate;
366	366	(B) the effective tax rate;
367	367	(C) the effective maintenance and operations tax
368	368	rate;
369	369	(D) the voter approval [rollback] tax rate; and
370	370	(E) the debt rate; and
371	371	(4) the total amount of county debt obligations.
372	372	SECTION 11. Sections 140.010(a), (d), and (e), Local
373	373	Government Code, are amended to read as follows:
374	374	(a) In this section, "effective tax rate" and "voter
375	375	approval [rollback] tax rate" mean the effective tax rate and voter
376	376	approval [rollback] tax rate of a county or municipality, as
377	377	applicable, as calculated under Chapter 26, Tax Code.
378	378	(d) A county or municipality that proposes a property tax
379	379	rate that does not exceed the lower of the effective tax rate or the
380	380	voter approval [rollback] tax rate shall provide the following
381	381	notice:
382	382	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
383	383	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
384	384	"A tax rate of $______ per $100 valuation has been proposed by the
385	385	governing body of (insert name of county or municipality).
386	386	PROPOSED TAX RATE $______ per $100
387	387	PRECEDING YEAR'S TAX RATE $______ per $100
388	388	EFFECTIVE TAX RATE $______ per $100
389	389	"The effective tax rate is the total tax rate needed to raise the
390	390	same amount of property tax revenue for (insert name of county or
391	391	municipality) from the same properties in both the (insert
392	392	preceding tax year) tax year and the (insert current tax year) tax
393	393	year.
394	394	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
395	395	FOLLOWS:
396	396	property tax amount = (rate) x (taxable value of your property) /
397	397	100
398	398	"For assistance or detailed information about tax calculations,
399	399	please contact:
400	400	(insert name of county or municipal tax assessor-collector)
401	401	(insert name of county or municipality) tax
402	402	assessor-collector
403	403	(insert address)
404	404	(insert telephone number)
405	405	(insert e-mail address)
406	406	(insert Internet website address, if applicable)"
407	407	(e) A county or municipality that proposes a property tax
408	408	rate that exceeds the lower of the effective tax rate or the voter
409	409	approval [rollback] tax rate shall provide the following notice:
410	410	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
411	411	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
412	412	"A tax rate of $_____ per $100 valuation has been proposed for
413	413	adoption by the governing body of (insert name of county or
414	414	municipality). This rate exceeds the lower of the effective or
415	415	voter approval [rollback] tax rate, and state law requires that two
416	416	public hearings be held by the governing body before adopting the
417	417	proposed tax rate. The governing body of (insert name of county or
418	418	municipality) proposes to use revenue attributable to the tax rate
419	419	increase for the purpose of (description of purpose of increase).
420	420	PROPOSED TAX RATE$______ per $100
421	421	PRECEDING YEAR'S TAX RATE$______ per $100
422	422	EFFECTIVE TAX RATE$______ per $100
423	423	VOTER APPROVAL [ROLLBACK] TAX RATE$______ per $100
424	424	"The effective tax rate is the total tax rate needed to raise the
425	425	same amount of property tax revenue for (insert name of county or
426	426	municipality) from the same properties in both the (insert
427	427	preceding tax year) tax year and the (insert current tax year) tax
428	428	year.
429	429	"The voter approval [rollback] tax rate is the highest tax rate that
430	430	(insert name of county or municipality) may adopt before voters are
431	431	entitled to petition for an election to limit the rate that may be
432	432	approved to the voter approval tax [rollback] rate.
433	433	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
434	434	FOLLOWS:
435	435	property tax amount = (rate) x (taxable value of your property) /
436	436	100
437	437	"For assistance or detailed information about tax calculations,
438	438	please contact:
439	439	(insert name of county or municipal tax assessor-collector)
440	440	(insert name of county or municipality) tax
441	441	assessor-collector
442	442	(insert address)
443	443	(insert telephone number)
444	444	(insert e-mail address)
445	445	(insert Internet website address, if applicable)
446	446	"You are urged to attend and express your views at the following
447	447	public hearings on the proposed tax rate:
448	448	First Hearing: (insert date and time) at (insert location of
449	449	meeting).
450	450	Second Hearing: (insert date and time) at (insert location
451	451	of meeting)."
452	452	SECTION 12. Sections 1063.255(a) and (d), Special District
453	453	Local Laws Code, are amended to read as follows:
454	454	(a) Notwithstanding Section 26.07(b)(3), Tax Code, a
455	455	petition to require an election under Section 26.07, Tax Code, on
456	456	reducing the district's tax rate to the voter approval [rollback]
457	457	tax rate shall be submitted to the Montgomery County elections
458	458	administrator instead of to the board.
459	459	(d) Notwithstanding Section 26.07(d), Tax Code, if the
460	460	elections administrator certifies to the board that the petition is
461	461	valid or fails to act within the time allowed, the board shall order
462	462	that an election under Section 26.07, Tax Code, to determine
463	463	whether to reduce the district's tax rate to the voter approval tax
464	464	[rollback] rate be held in the district in the manner prescribed by
465	465	Section 26.07(d) of that code.
466	466	SECTION 13. Section 1122.2522, Special District Local Laws
467	467	Code, is amended to read as follows:
468	468	Sec. 1122.2522. VOTER APPROVAL [ROLLBACK] TAX RATE
469	469	PROVISIONS APPLICABLE. (a) If in any year the board adopts a tax
470	470	rate that exceeds the voter approval [rollback] tax rate calculated
471	471	as provided by Chapter 26, Tax Code, the qualified voters of the
472	472	district by petition may require that an election be held to
473	473	determine whether or not to reduce the tax rate adopted by the board
474	474	for that year to the voter approval [rollback] tax rate.
475	475	(b) To the extent a conflict exists between this section and
476	476	a provision of the Tax Code, the provision of the Tax Code prevails.
477	477	SECTION 14. Section 26.012(10), Tax Code, is amended to
478	478	read as follows:
479	479	(10) "Excess collections" means the amount, if any, by
480	480	which debt taxes collected in the preceding year exceeded the
481	481	amount anticipated in the preceding year's calculation of the
482	482	voter approval tax [rollback] rate, as certified by the collector
483	483	under Section 26.04(b) [of this code].
484	484	SECTION 15. The heading to Section 26.04, Tax Code, is
485	485	amended to read as follows:
486	486	Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
487	487	EFFECTIVE AND VOTER APPROVAL [ROLLBACK] TAX RATES.
488	488	SECTION 16. Sections 26.04(c), (d), (e), (f), (i), and (j),
489	489	Tax Code, are amended to read as follows:
490	490	(c) An officer or employee designated by the governing body
491	491	shall calculate the effective tax rate and the voter approval
492	492	[rollback] tax rate for the taxing unit, where:
493	493	(1) "Effective tax rate" means a rate expressed in
494	494	dollars per $100 of taxable value calculated according to the
495	495	following formula:
496	496	EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY
497	497	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
498	498	; and
499	499	(2) "Voter approval [Rollback] tax rate" means a rate
500	500	expressed in dollars per $100 of taxable value calculated according
501	501	to the following formula:
502	502	VOTER APPROVAL [ROLLBACK] TAX RATE = (EFFECTIVE
503	503	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
504	504	RATE
505	505	(d) The effective tax rate for a county is the sum of the
506	506	effective tax rates calculated for each type of tax the county
507	507	levies and the voter approval [rollback] tax rate for a county is
508	508	the sum of the voter approval [rollback] tax rates calculated for
509	509	each type of tax the county levies.
510	510	(e) By August 7 or as soon thereafter as practicable, the
511	511	designated officer or employee shall submit the rates to the
512	512	governing body. The designated officer or employee [He] shall
513	513	deliver by mail to each property owner in the taxing unit or publish
514	514	in a newspaper in the form prescribed by the comptroller:
515	515	(1) the effective tax rate, the voter approval
516	516	[rollback] tax rate, and an explanation of how they were
517	517	calculated;
518	518	(2) the estimated amount of interest and sinking fund
519	519	balances and the estimated amount of maintenance and operation or
520	520	general fund balances remaining at the end of the current fiscal
521	521	year that are not encumbered with or by corresponding existing debt
522	522	obligation;
523	523	(3) a schedule of the taxing unit's debt obligations
524	524	showing:
525	525	(A) the amount of principal and interest that
526	526	will be paid to service the taxing unit's debts in the next year
527	527	from property tax revenue, including payments of lawfully incurred
528	528	contractual obligations providing security for the payment of the
529	529	principal of and interest on bonds and other evidences of
530	530	indebtedness issued on behalf of the taxing unit by another
531	531	political subdivision and, if the taxing unit is created under
532	532	Section 52, Article III, or Section 59, Article XVI, Texas
533	533	Constitution, payments on debts that the taxing unit anticipates to
534	534	incur in the next calendar year;
535	535	(B) the amount by which taxes imposed for debt
536	536	are to be increased because of the taxing unit's anticipated
537	537	collection rate; and
538	538	(C) the total of the amounts listed in Paragraphs
539	539	(A)-(B), less any amount collected in excess of the previous year's
540	540	anticipated collections certified as provided in Subsection (b);
541	541	(4) the amount of additional sales and use tax revenue
542	542	anticipated in calculations under Section 26.041;
543	543	(5) a statement that the adoption of a tax rate equal
544	544	to the effective tax rate would result in an increase or decrease,
545	545	as applicable, in the amount of taxes imposed by the taxing unit as
546	546	compared to last year's levy, and the amount of the increase or
547	547	decrease;
548	548	(6) in the year that a taxing unit calculates an
549	549	adjustment under Subsection (i) or (j), a schedule that includes
550	550	the following elements:
551	551	(A) the name of the taxing unit discontinuing the
552	552	department, function, or activity;
553	553	(B) the amount of property tax revenue spent by
554	554	the taxing unit listed under Paragraph (A) to operate the
555	555	discontinued department, function, or activity in the 12 months
556	556	preceding the month in which the calculations required by this
557	557	chapter are made; and
558	558	(C) the name of the taxing unit that operates a
559	559	distinct department, function, or activity in all or a majority of
560	560	the territory of a taxing unit that has discontinued operating the
561	561	distinct department, function, or activity; and
562	562	(7) in the year following the year in which a taxing
563	563	unit raised its voter approval tax [rollback] rate as required by
564	564	Subsection (j), a schedule that includes the following elements:
565	565	(A) the amount of property tax revenue spent by
566	566	the taxing unit to operate the department, function, or activity
567	567	for which the taxing unit raised the voter approval tax [rollback]
568	568	rate as required by Subsection (j) for the 12 months preceding the
569	569	month in which the calculations required by this chapter are made;
570	570	and
571	571	(B) the amount published by the taxing unit in
572	572	the preceding tax year under Subdivision (6)(B).
573	573	(f) If as a result of consolidation of taxing units a taxing
574	574	unit includes territory that was in two or more taxing units in the
575	575	preceding year, the amount of taxes imposed in each in the preceding
576	576	year is combined for purposes of calculating the effective and
577	577	voter approval [rollback] tax rates under this section.
578	578	(i) This subsection applies to a taxing unit that has agreed
579	579	by written contract to transfer a distinct department, function, or
580	580	activity to another taxing unit and discontinues operating that
581	581	distinct department, function, or activity if the operation of that
582	582	department, function, or activity in all or a majority of the
583	583	territory of the taxing unit is continued by another existing
584	584	taxing unit or by a new taxing unit. The voter approval [rollback]
585	585	tax rate of a taxing unit to which this subsection applies in the
586	586	first tax year in which a budget is adopted that does not allocate
587	587	revenue to the discontinued department, function, or activity is
588	588	calculated as otherwise provided by this section, except that last
589	589	year's levy used to calculate the effective maintenance and
590	590	operations rate of the taxing unit is reduced by the amount of
591	591	maintenance and operations tax revenue spent by the taxing unit to
592	592	operate the department, function, or activity for the 12 months
593	593	preceding the month in which the calculations required by this
594	594	chapter are made and in which the taxing unit operated the
595	595	discontinued department, function, or activity. If the taxing unit
596	596	did not operate that department, function, or activity for the full
597	597	12 months preceding the month in which the calculations required by
598	598	this chapter are made, the taxing unit shall reduce last year's levy
599	599	used for calculating the effective maintenance and operations rate
600	600	of the taxing unit by the amount of the revenue spent in the last
601	601	full fiscal year in which the taxing unit operated the discontinued
602	602	department, function, or activity.
603	603	(j) This subsection applies to a taxing unit that had agreed
604	604	by written contract to accept the transfer of a distinct
605	605	department, function, or activity from another taxing unit and
606	606	operates a distinct department, function, or activity if the
607	607	operation of a substantially similar department, function, or
608	608	activity in all or a majority of the territory of the taxing unit
609	609	has been discontinued by another taxing unit, including a dissolved
610	610	taxing unit. The voter approval [rollback] tax rate of a taxing
611	611	unit to which this subsection applies in the first tax year after
612	612	the other taxing unit discontinued the substantially similar
613	613	department, function, or activity in which a budget is adopted that
614	614	allocates revenue to the department, function, or activity is
615	615	calculated as otherwise provided by this section, except that last
616	616	year's levy used to calculate the effective maintenance and
617	617	operations rate of the taxing unit is increased by the amount of
618	618	maintenance and operations tax revenue spent by the taxing unit
619	619	that discontinued operating the substantially similar department,
620	620	function, or activity to operate that department, function, or
621	621	activity for the 12 months preceding the month in which the
622	622	calculations required by this chapter are made and in which the
623	623	taxing unit operated the discontinued department, function, or
624	624	activity. If the taxing unit did not operate the discontinued
625	625	department, function, or activity for the full 12 months preceding
626	626	the month in which the calculations required by this chapter are
627	627	made, the taxing unit may increase last year's levy used to
628	628	calculate the effective maintenance and operations rate by an
629	629	amount not to exceed the amount of property tax revenue spent by the
630	630	discontinuing taxing unit to operate the discontinued department,
631	631	function, or activity in the last full fiscal year in which the
632	632	discontinuing taxing unit operated the department, function, or
633	633	activity.
634	634	SECTION 17. Sections 26.041(a), (b), (c), and (e), Tax
635	635	Code, are amended to read as follows:
636	636	(a) In the first year in which an additional sales and use
637	637	tax is required to be collected, the effective tax rate and voter
638	638	approval [rollback] tax rate for the taxing unit are calculated
639	639	according to the following formulas:
640	640	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
641	641	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -
642	642	SALES TAX GAIN RATE
643	643	and
644	644	VOTER APPROVAL TAX [ROLLBACK] RATE = (EFFECTIVE
645	645	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
646	646	RATE - SALES TAX GAIN RATE
647	647	where "sales tax gain rate" means a number expressed in dollars per
648	648	$100 of taxable value, calculated by dividing the revenue that will
649	649	be generated by the additional sales and use tax in the following
650	650	year as calculated under Subsection (d) [of this section] by the
651	651	current total value.
652	652	(b) Except as provided by Subsections (a) and (c) [of this
653	653	section], in a year in which a taxing unit imposes an additional
654	654	sales and use tax the voter approval [rollback] tax rate for the
655	655	taxing unit is calculated according to the following formula,
656	656	regardless of whether the taxing unit levied a property tax in the
657	657	preceding year:
658	658	VOTER APPROVAL TAX [ROLLBACK] RATE = [(LAST YEAR'S
659	659	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
660	660	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT
661	661	DEBT RATE - SALES TAX REVENUE RATE)
662	662	where "last year's maintenance and operations expense" means the
663	663	amount spent for maintenance and operations from property tax and
664	664	additional sales and use tax revenues in the preceding year, and
665	665	"sales tax revenue rate" means a number expressed in dollars per
666	666	$100 of taxable value, calculated by dividing the revenue that will
667	667	be generated by the additional sales and use tax in the current year
668	668	as calculated under Subsection (d) [of this section] by the current
669	669	total value.
670	670	(c) In a year in which a taxing unit that has been imposing
671	671	an additional sales and use tax ceases to impose an additional sales
672	672	and use tax the effective tax rate and voter approval [rollback] tax
673	673	rate for the taxing unit are calculated according to the following
674	674	formulas:
675	675	EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY
676	676	LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
677	677	SALES TAX LOSS RATE
678	678	and
679	679	VOTE APPROVAL [ROLLBACK] TAX RATE = [(LAST YEAR'S
680	680	MAINTENANCE AND OPERATIONS EXPENSE x 1.08) / ([TOTAL]
681	681	CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT
682	682	DEBT RATE
683	683	where "sales tax loss rate" means a number expressed in dollars per
684	684	$100 of taxable value, calculated by dividing the amount of sales
685	685	and use tax revenue generated in the last four quarters for which
686	686	the information is available by the current total value and "last
687	687	year's maintenance and operations expense" means the amount spent
688	688	for maintenance and operations from property tax and additional
689	689	sales and use tax revenues in the preceding year.
690	690	(e) If a city that imposes an additional sales and use tax
691	691	receives payments under the terms of a contract executed before
692	692	January 1, 1986, in which the city agrees not to annex certain
693	693	property or a certain area and the owners or lessees of the property
694	694	or of property in the area agree to pay at least annually to the city
695	695	an amount determined by reference to all or a percentage of the
696	696	property tax rate of the city and all or a part of the value of the
697	697	property subject to the agreement or included in the area subject to
698	698	the agreement, the governing body, by order adopted by a majority
699	699	vote of the governing body, may direct the designated officer or
700	700	employee to add to the effective and voter approval [rollback] tax
701	701	rates the amount that, when applied to the total taxable value
702	702	submitted to the governing body, would produce an amount of taxes
703	703	equal to the difference between the total amount of payments for the
704	704	tax year under contracts described by this subsection under the
705	705	voter approval [rollback] tax rate calculated under this section
706	706	and the total amount of payments for the tax year that would have
707	707	been obligated to the city if the city had not adopted an additional
708	708	sales and use tax.
709	709	SECTION 18. Sections 26.043(a) and (b), Tax Code, are
710	710	amended to read as follows:
711	711	(a) In the tax year in which a city has set an election on
712	712	the question of whether to impose a local sales and use tax under
713	713	Subchapter H, Chapter 453, Transportation Code, the officer or
714	714	employee designated to make the calculations provided by Section
715	715	26.04 may not make those calculations until the outcome of the
716	716	election is determined. If the election is determined in favor of
717	717	the imposition of the tax, the designated officer or employee
718	718	[representative] shall subtract from the city's voter approval
719	719	[rollback] and effective tax rates the amount that, if applied to
720	720	the city's current total value, would impose an amount equal to the
721	721	amount of property taxes budgeted in the current tax year to pay for
722	722	expenses related to mass transit services.
723	723	(b) In a tax year to which this section applies, a reference
724	724	in this chapter to the city's effective or voter approval
725	725	[rollback] tax rate refers to that rate as adjusted under this
726	726	section.
727	727	SECTION 19. The heading to Section 26.045, Tax Code, is
728	728	amended to read as follows:
729	729	Sec. 26.045. VOTER APPROVAL TAX RATE [ROLLBACK] RELIEF FOR
730	730	POLLUTION CONTROL REQUIREMENTS.
731	731	SECTION 20. Sections 26.045(a), (c), and (i), Tax Code, are
732	732	amended to read as follows:
733	733	(a) The voter approval [rollback] tax rate for a political
734	734	subdivision of this state is increased by the rate that, if applied
735	735	to the total current value, would impose an amount of taxes equal to
736	736	the amount the political subdivision will spend out of its
737	737	maintenance and operation funds under Section 26.012(16) to pay for
738	738	a facility, device, or method for the control of air, water, or land
739	739	pollution that is necessary to meet the requirements of a permit
740	740	issued by the Texas Commission on Environmental Quality.
741	741	(c) To receive an adjustment to the voter approval
742	742	[rollback] tax rate under this section, a political subdivision
743	743	shall present information to the executive director of the Texas
744	744	Commission on Environmental Quality in a permit application or in a
745	745	request for any exemption from a permit that would otherwise be
746	746	required detailing:
747	747	(1) the anticipated environmental benefits from the
748	748	installation of the facility, device, or method for the control of
749	749	air, water, or land pollution;
750	750	(2) the estimated cost of the pollution control
751	751	facility, device, or method; and
752	752	(3) the purpose of the installation of the facility,
753	753	device, or method, and the proportion of the installation that is
754	754	pollution control property.
755	755	(i) A political subdivision of the state seeking an
756	756	adjustment in its voter approval [rollback] tax rate under this
757	757	section shall provide to its tax assessor a copy of the letter
758	758	issued by the executive director of the Texas Commission on
759	759	Environmental Quality under Subsection (d). The tax assessor
760	760	shall accept the copy of the letter from the executive director as
761	761	conclusive evidence that the facility, device, or method is used
762	762	wholly or partly as pollution control property and shall adjust the
763	763	voter approval [rollback] tax rate for the political subdivision as
764	764	provided for by Subsection (a).
765	765	SECTION 21. Sections 26.05(d) and (g), Tax Code, are
766	766	amended to read as follows:
767	767	(d) The governing body of a taxing unit other than a school
768	768	district may not adopt a tax rate that exceeds the lower of the
769	769	voter approval [rollback] tax rate or the effective tax rate
770	770	calculated as provided by this chapter until the governing body has
771	771	held two public hearings on the proposed tax rate and has otherwise
772	772	complied with Section 26.06 and Section 26.065. The governing body
773	773	of a taxing unit shall reduce a tax rate set by law or by vote of the
774	774	electorate to the lower of the voter approval [rollback] tax rate or
775	775	the effective tax rate and may not adopt a higher rate unless it
776	776	first complies with Section 26.06.
777	777	(g) Notwithstanding Subsection (a), the governing body of a
778	778	school district that elects to adopt a tax rate before the adoption
779	779	of a budget for the fiscal year that begins in the current tax year
780	780	may adopt a tax rate for the current tax year before receipt of the
781	781	certified appraisal roll for the school district if the chief
782	782	appraiser of the appraisal district in which the school district
783	783	participates has certified to the assessor for the school district
784	784	an estimate of the taxable value of property in the school district
785	785	as provided by Section 26.01(e). If a school district adopts a tax
786	786	rate under this subsection, the effective tax rate and the voter
787	787	approval [rollback] tax rate of the district shall be calculated
788	788	based on the certified estimate of taxable value.
789	789	SECTION 22. Sections 26.06(b), (d), and (e), Tax Code, are
790	790	amended to read as follows:
791	791	(b) The notice of a public hearing may not be smaller than
792	792	one-quarter page of a standard-size or a tabloid-size newspaper,
793	793	and the headline on the notice must be in 24-point or larger
794	794	type. The notice must contain a statement in the following form:
795	795	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
796	796	"The (name of the taxing unit) will hold two public hearings
797	797	on a proposal to increase total tax revenues from properties on the
798	798	tax roll in the preceding tax year by (percentage by which proposed
799	799	tax rate exceeds lower of voter approval [rollback] tax rate or
800	800	effective tax rate calculated under this chapter) percent. Your
801	801	individual taxes may increase at a greater or lesser rate, or even
802	802	decrease, depending on the change in the taxable value of your
803	803	property in relation to the change in taxable value of all other
804	804	property and the tax rate that is adopted.
805	805	"The first public hearing will be held on (date and time) at
806	806	(meeting place).
807	807	"The second public hearing will be held on (date and time) at
808	808	(meeting place).
809	809	"(Names of all members of the governing body, showing how
810	810	each voted on the proposal to consider the tax increase or, if one
811	811	or more were absent, indicating the absences.)
812	812	"The average taxable value of a residence homestead in (name
813	813	of taxing unit) last year was $____ (average taxable value of a
814	814	residence homestead in the taxing unit for the preceding tax year,
815	815	disregarding residence homestead exemptions available only to
816	816	disabled persons or persons 65 years of age or older). Based on
817	817	last year's tax rate of $____ (preceding year's adopted tax rate)
818	818	per $100 of taxable value, the amount of taxes imposed last year on
819	819	the average home was $____ (tax on average taxable value of a
820	820	residence homestead in the taxing unit for the preceding tax year,
821	821	disregarding residence homestead exemptions available only to
822	822	disabled persons or persons 65 years of age or older).
823	823	"The average taxable value of a residence homestead in (name
824	824	of taxing unit) this year is $____ (average taxable value of a
825	825	residence homestead in the taxing unit for the current tax year,
826	826	disregarding residence homestead exemptions available only to
827	827	disabled persons or persons 65 years of age or older). If the
828	828	governing body adopts the effective tax rate for this year of $____
829	829	(effective tax rate) per $100 of taxable value, the amount of taxes
830	830	imposed this year on the average home would be $____ (tax on average
831	831	taxable value of a residence homestead in the taxing unit for the
832	832	current tax year, disregarding residence homestead exemptions
833	833	available only to disabled persons or persons 65 years of age or
834	834	older).
835	835	"If the governing body adopts the proposed tax rate of $____
836	836	(proposed tax rate) per $100 of taxable value, the amount of taxes
837	837	imposed this year on the average home would be $____ (tax on the
838	838	average taxable value of a residence in the taxing unit for the
839	839	current year disregarding residence homestead exemptions available
840	840	only to disabled persons or persons 65 years of age or older).
841	841	"Members of the public are encouraged to attend the hearings
842	842	and express their views."
843	843	(d) At the public hearings the governing body shall announce
844	844	the date, time, and place of the meeting at which it will vote on the
845	845	proposed tax rate. After each hearing the governing body shall
846	846	give notice of the meeting at which it will vote on the proposed tax
847	847	rate and the notice shall be in the same form as prescribed by
848	848	Subsections (b) and (c), except that it must state the following:
849	849	"NOTICE OF TAX REVENUE INCREASE
850	850	"The (name of the taxing unit) conducted public hearings on
851	851	(date of first hearing) and (date of second hearing) on a proposal
852	852	to increase the total tax revenues of the (name of the taxing unit)
853	853	from properties on the tax roll in the preceding year by (percentage
854	854	by which proposed tax rate exceeds lower of voter approval
855	855	[rollback] tax rate or effective tax rate calculated under this
856	856	chapter) percent.
857	857	"The total tax revenue proposed to be raised last year at last
858	858	year's tax rate of (insert tax rate for the preceding year) for each
859	859	$100 of taxable value was (insert total amount of taxes imposed in
860	860	the preceding year).
861	861	"The total tax revenue proposed to be raised this year at the
862	862	proposed tax rate of (insert proposed tax rate) for each $100 of
863	863	taxable value, excluding tax revenue to be raised from new property
864	864	added to the tax roll this year, is (insert amount computed by
865	865	multiplying proposed tax rate by the difference between current
866	866	total value and new property value).
867	867	"The total tax revenue proposed to be raised this year at the
868	868	proposed tax rate of (insert proposed tax rate) for each $100 of
869	869	taxable value, including tax revenue to be raised from new property
870	870	added to the tax roll this year, is (insert amount computed by
871	871	multiplying proposed tax rate by current total value).
872	872	"The (governing body of the taxing unit) is scheduled to vote
873	873	on the tax rate that will result in that tax increase at a public
874	874	meeting to be held on (date of meeting) at (location of meeting,
875	875	including mailing address) at (time of meeting).
876	876	"The (governing body of the taxing unit) proposes to use the
877	877	increase in total tax revenue for the purpose of (description of
878	878	purpose of increase)."
879	879	(e) The meeting to vote on the tax increase may not be
880	880	earlier than the third day or later than the 14th day after the date
881	881	of the second public hearing. The meeting must be held inside the
882	882	boundaries of the taxing unit in a publicly owned building or, if a
883	883	suitable publicly owned building is not available, in a suitable
884	884	building to which the public normally has access. If the governing
885	885	body does not adopt a tax rate that exceeds the lower of the voter
886	886	approval [rollback] tax rate or the effective tax rate by the 14th
887	887	day, it must give a new notice under Subsection (d) before it may
888	888	adopt a rate that exceeds the lower of the voter approval [rollback]
889	889	tax rate or the effective tax rate.
890	890	SECTION 23. Sections 26.07(a), (d), and (e), Tax Code, are
891	891	amended to read as follows:
892	892	(a) If the governing body of a taxing unit other than a
893	893	school district adopts a tax rate that exceeds the voter approval
894	894	[rollback] tax rate calculated as provided by this chapter, the
895	895	qualified voters of the taxing unit by petition may require that an
896	896	election be held to determine whether or not to reduce the tax rate
897	897	adopted for the current year to the voter approval [rollback] tax
898	898	rate calculated as provided by this chapter.
899	899	(d) If the governing body finds that the petition is valid
900	900	(or fails to act within the time allowed), it shall order that an
901	901	election be held in the taxing unit on a date not less than 30 or
902	902	more than 90 days after the last day on which it could have acted to
903	903	approve or disapprove the petition. A state law requiring local
904	904	elections to be held on a specified date does not apply to the
905	905	election unless a specified date falls within the time permitted by
906	906	this section. At the election, the ballots shall be prepared to
907	907	permit voting for or against the proposition: "Reducing the tax
908	908	rate in (name of taxing unit) for the current year from (the rate
909	909	adopted) to (the voter approval [rollback] tax rate calculated as
910	910	provided by this chapter)."
911	911	(e) If a majority of the qualified voters voting on the
912	912	question in the election favor the proposition, the tax rate for the
913	913	taxing unit for the current year is the voter approval [rollback]
914	914	tax rate calculated as provided by this chapter; otherwise, the tax
915	915	rate for the current year is the one adopted by the governing body.
916	916	SECTION 24. Sections 26.08(a), (b), (d), (g), (n), (o), and
917	917	(p), Tax Code, are amended to read as follows:
918	918	(a) If the governing body of a school district adopts a tax
919	919	rate that exceeds the district's voter approval [rollback] tax
920	920	rate, the registered voters of the district at an election held for
921	921	that purpose must determine whether to approve the adopted tax
922	922	rate. When increased expenditure of money by a school district is
923	923	necessary to respond to a disaster, including a tornado, hurricane,
924	924	flood, or other calamity, but not including a drought, that has
925	925	impacted a school district and the governor has requested federal
926	926	disaster assistance for the area in which the school district is
927	927	located, an election is not required under this section to approve
928	928	the tax rate adopted by the governing body for the year following
929	929	the year in which the disaster occurs.
930	930	(b) The governing body shall order that the election be held
931	931	in the school district on a date not less than 30 or more than 90
932	932	days after the day on which it adopted the tax rate. Section
933	933	41.001, Election Code, does not apply to the election unless a date
934	934	specified by that section falls within the time permitted by this
935	935	section. At the election, the ballots shall be prepared to permit
936	936	voting for or against the proposition: "Approving the ad valorem
937	937	tax rate of $_____ per $100 valuation in (name of school district)
938	938	for the current year, a rate that is $_____ higher per $100
939	939	valuation than the school district voter approval [rollback] tax
940	940	rate, for the purpose of (description of purpose of
941	941	increase)." The ballot proposition must include the adopted tax
942	942	rate and the difference between that rate and the voter approval
943	943	[rollback] tax rate in the appropriate places.
944	944	(d) If the proposition is not approved as provided by
945	945	Subsection (c), the governing body may not adopt a tax rate for the
946	946	school district for the current year that exceeds the school
947	947	district's voter approval [rollback] tax rate.
948	948	(g) In a school district that received distributions from an
949	949	equalization tax imposed under former Chapter 18, Education Code,
950	950	the effective rate of that tax as of the date of the county unit
951	951	system's abolition is added to the district's voter approval
952	952	[rollback] tax rate.
953	953	(n) For purposes of this section, the voter approval
954	954	[rollback] tax rate of a school district whose maintenance and
955	955	operations tax rate for the 2005 tax year was $1.50 or less per $100
956	956	of taxable value is:
957	957	(1) for the 2006 tax year, the sum of the rate that is
958	958	equal to 88.67 percent of the maintenance and operations tax rate
959	959	adopted by the district for the 2005 tax year, the rate of $0.04 per
960	960	$100 of taxable value, and the district's current debt rate; and
961	961	(2) for the 2007 and subsequent tax years, the lesser
962	962	of the following:
963	963	(A) the sum of the following:
964	964	(i) the rate per $100 of taxable value that
965	965	is equal to the product of the state compression percentage, as
966	966	determined under Section 42.2516, Education Code, for the current
967	967	year and $1.50;
968	968	(ii) the rate of $0.04 per $100 of taxable
969	969	value;
970	970	(iii) the rate that is equal to the sum of
971	971	the differences for the 2006 and each subsequent tax year between
972	972	the adopted tax rate of the district for that year if the rate was
973	973	approved at an election under this section and the voter approval
974	974	[rollback] tax rate of the district for that year; and
975	975	(iv) the district's current debt rate; or
976	976	(B) the sum of the following:
977	977	(i) the effective maintenance and
978	978	operations tax rate of the district as computed under Subsection
979	979	(i) or (k), as applicable;
980	980	(ii) the rate per $100 of taxable value that
981	981	is equal to the product of the state compression percentage, as
982	982	determined under Section 42.2516, Education Code, for the current
983	983	year and $0.06; and
984	984	(iii) the district's current debt rate.
985	985	(o) For purposes of this section, the voter approval
986	986	[rollback] tax rate of a school district whose maintenance and
987	987	operations tax rate for the 2005 tax year was greater than $1.50 per
988	988	$100 of taxable value is computed in the manner provided by
989	989	Subsection (n) except that the maintenance and operations tax rate
990	990	per $100 of taxable value adopted by the district for the 2005 tax
991	991	year is substituted for $1.50 in a computation under that
992	992	subsection.
993	993	(p) Notwithstanding Subsections (i), (n), and (o), if for
994	994	the preceding tax year a school district adopted a maintenance and
995	995	operations tax rate that was less than the district's effective
996	996	maintenance and operations tax rate for that preceding tax year,
997	997	the voter approval [rollback] tax rate of the district for the
998	998	current tax year is calculated as if the district adopted a
999	999	maintenance and operations tax rate for the preceding tax year that
1000	1000	was equal to the district's effective maintenance and operations
1001	1001	tax rate for that preceding tax year.
1002	1002	SECTION 25. Sections 26.16(a) and (d), Tax Code, are
1003	1003	amended to read as follows:
1004	1004	(a) The county assessor-collector for each county that
1005	1005	maintains an Internet website shall post on the website of the
1006	1006	county the following information for the most recent five tax years
1007	1007	beginning with the 2012 tax year for each taxing unit all or part of
1008	1008	the territory of which is located in the county:
1009	1009	(1) the adopted tax rate;
1010	1010	(2) the maintenance and operations rate;
1011	1011	(3) the debt rate;
1012	1012	(4) the effective tax rate;
1013	1013	(5) the effective maintenance and operations rate; and
1014	1014	(6) the voter approval [rollback] tax rate.
1015	1015	(d) The county assessor-collector shall post immediately
1016	1016	below the table prescribed by Subsection (c) the following
1017	1017	statement:
1018	1018	"The county is providing this table of property tax rate
1019	1019	information as a service to the residents of the county. Each
1020	1020	individual taxing unit is responsible for calculating the property
1021	1021	tax rates listed in this table pertaining to that taxing unit and
1022	1022	providing that information to the county.
1023	1023	"The adopted tax rate is the tax rate adopted by the governing
1024	1024	body of a taxing unit.
1025	1025	"The maintenance and operations rate is the component of the
1026	1026	adopted tax rate of a taxing unit that will impose the amount of
1027	1027	taxes needed to fund maintenance and operation expenditures of the
1028	1028	taxing unit for the following year.
1029	1029	"The debt rate is the component of the adopted tax rate of a
1030	1030	taxing unit that will impose the amount of taxes needed to fund the
1031	1031	taxing unit's debt service for the following year.
1032	1032	"The effective tax rate is the tax rate that would generate
1033	1033	the same amount of revenue in the current tax year as was generated
1034	1034	by a taxing unit's adopted tax rate in the preceding tax year from
1035	1035	property that is taxable in both the current tax year and the
1036	1036	preceding tax year.
1037	1037	"The effective maintenance and operations rate is the tax
1038	1038	rate that would generate the same amount of revenue for maintenance
1039	1039	and operations in the current tax year as was generated by a taxing
1040	1040	unit's maintenance and operations rate in the preceding tax year
1041	1041	from property that is taxable in both the current tax year and the
1042	1042	preceding tax year.
1043	1043	"The voter approval [rollback] tax rate is the highest tax
1044	1044	rate a taxing unit may adopt before requiring voter approval at an
1045	1045	election. In the case of a taxing unit other than a school
1046	1046	district, the voters by petition may require that a voter approval
1047	1047	tax rate [rollback] election be held if the taxing unit adopts a tax
1048	1048	rate in excess of the taxing unit's voter approval [rollback] tax
1049	1049	rate. In the case of a school district, an election will
1050	1050	automatically be held if the district wishes to adopt a tax rate in
1051	1051	excess of the district's voter approval [rollback] tax rate."
1052	1052	SECTION 26. Sections 49.236(a) and (d), Water Code, as
1053	1053	added by Chapter 335 (S.B. 392), Acts of the 78th Legislature,
1054	1054	Regular Session, 2003, are amended to read as follows:
1055	1055	(a) Before the board adopts an ad valorem tax rate for the
1056	1056	district for debt service, operation and maintenance purposes, or
1057	1057	contract purposes, the board shall give notice of each meeting of
1058	1058	the board at which the adoption of a tax rate will be considered.
1059	1059	The notice must:
1060	1060	(1) contain a statement in substantially the following
1061	1061	form:
1062	1062	"NOTICE OF PUBLIC HEARING ON TAX RATE
1063	1063	"The (name of the district) will hold a public hearing on a
1064	1064	proposed tax rate for the tax year (year of tax levy) on (date and
1065	1065	time) at (meeting place). Your individual taxes may increase or
1066	1066	decrease, depending on the change in the taxable value of your
1067	1067	property in relation to the change in taxable value of all other
1068	1068	property and the tax rate that is adopted.
1069	1069	"(Names of all board members and, if a vote was taken, an
1070	1070	indication of how each voted on the proposed tax rate and an
1071	1071	indication of any absences.)";
1072	1072	(2) contain the following information:
1073	1073	(A) the district's total adopted tax rate for the
1074	1074	preceding year and the proposed tax rate, expressed as an amount per
1075	1075	$100;
1076	1076	(B) the difference, expressed as an amount per
1077	1077	$100 and as a percent increase or decrease, as applicable, in the
1078	1078	proposed tax rate compared to the adopted tax rate for the preceding
1079	1079	year;
1080	1080	(C) the average appraised value of a residence
1081	1081	homestead in the district in the preceding year and in the current
1082	1082	year; the district's total homestead exemption, other than an
1083	1083	exemption available only to disabled persons or persons 65 years of
1084	1084	age or older, applicable to that appraised value in each of those
1085	1085	years; and the average taxable value of a residence homestead in
1086	1086	the district in each of those years, disregarding any homestead
1087	1087	exemption available only to disabled persons or persons 65 years of
1088	1088	age or older;
1089	1089	(D) the amount of tax that would have been
1090	1090	imposed by the district in the preceding year on a residence
1091	1091	homestead appraised at the average appraised value of a residence
1092	1092	homestead in that year, disregarding any homestead exemption
1093	1093	available only to disabled persons or persons 65 years of age or
1094	1094	older;
1095	1095	(E) the amount of tax that would be imposed by the
1096	1096	district in the current year on a residence homestead appraised at
1097	1097	the average appraised value of a residence homestead in that year,
1098	1098	disregarding any homestead exemption available only to disabled
1099	1099	persons or persons 65 years of age or older, if the proposed tax
1100	1100	rate is adopted; and
1101	1101	(F) the difference between the amounts of tax
1102	1102	calculated under Paragraphs (D) and (E), expressed in dollars and
1103	1103	cents and described as the annual percentage increase or decrease,
1104	1104	as applicable, in the tax to be imposed by the district on the
1105	1105	average residence homestead in the district in the current year if
1106	1106	the proposed tax rate is adopted; and
1107	1107	(3) contain a statement in substantially the following
1108	1108	form:
1109	1109	"NOTICE OF TAXPAYERS' RIGHT TO VOTER APPROVAL TAX RATE [ROLLBACK]
1110	1110	ELECTION
1111	1111	"If taxes on the average residence homestead increase by more
1112	1112	than eight percent, the qualified voters of the district by
1113	1113	petition may require that an election be held to determine whether
1114	1114	to reduce the operation and maintenance tax rate to the voter
1115	1115	approval [rollback] tax rate under Section 49.236(d), Water Code."
1116	1116	(d) If the governing body of a district adopts a combined
1117	1117	debt service, operation and maintenance, and contract tax rate that
1118	1118	would impose more than 1.08 times the amount of tax imposed by the
1119	1119	district in the preceding year on a residence homestead appraised
1120	1120	at the average appraised value of a residence homestead in the
1121	1121	district in that year, disregarding any homestead exemption
1122	1122	available only to disabled persons or persons 65 years of age or
1123	1123	older, the qualified voters of the district by petition may require
1124	1124	that an election be held to determine whether or not to reduce the
1125	1125	tax rate adopted for the current year to the voter approval
1126	1126	[rollback] tax rate in accordance with the procedures provided by
1127	1127	Sections 26.07(b)-(g) and 26.081, Tax Code. For purposes of
1128	1128	Sections 26.07(b)-(g) and this subsection, the voter approval
1129	1129	[rollback] tax rate is the current year's debt service and contract
1130	1130	tax rates plus the operation and maintenance tax rate that would
1131	1131	impose 1.08 times the amount of the operation and maintenance tax
1132	1132	imposed by the district in the preceding year on a residence
1133	1133	homestead appraised at the average appraised value of a residence
1134	1134	homestead in the district in that year, disregarding any homestead
1135	1135	exemption available only to disabled persons or persons 65 years of
1136	1136	age or older.
1137	1137	SECTION 27. Section 49.2361, Water Code, is amended to read
1138	1138	as follows:
1139	1139	Sec. 49.2361. ADDITIONAL NOTICE FOR CERTAIN TAX INCREASES.
1140	1140	If a district proposes to adopt a combined tax rate that would
1141	1141	authorize the qualified voters of the district by petition to
1142	1142	require a voter approval tax rate [rollback] election to be held in
1143	1143	the district, the notice required by Section 49.236 must include a
1144	1144	description of the purpose of the proposed tax increase.
1145	1145	SECTION 28. A reference in law to a "rollback" tax rate
1146	1146	means a "voter approval" tax rate.
1147	1147	SECTION 29. This Act takes effect January 1, 2020.