Texas 2019 - 86th Regular

Texas Senate Bill SB2 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2
	1	+	86R29609 CJC/TJB-F
	2	+	By: Bettencourt, et al. S.B. No. 2
	3	+	(Burrows, et al.)
	4	+	Substitute the following for S.B. No. 2: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to ad valorem taxation; authorizing fees.
6	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7		-	SECTION 1. This Act may be cited as the Texas Property Tax
8		-	Reform and Transparency Act of 2019.
9		-	SECTION 2. Chapter 1, Tax Code, is amended by adding Section
10		-	1.045 to read as follows:
11		-	Sec. 1.045. REFERENCE TO CERTAIN TERMS IN LAW. Unless the
12		-	context indicates otherwise:
13		-	(1) a reference in law to a taxing unit's effective
14		-	maintenance and operations rate is a reference to the taxing unit's
15		-	no-new-revenue maintenance and operations rate, as defined by
16		-	Chapter 26;
17		-	(2) a reference in law to a taxing unit's effective tax
18		-	rate is a reference to the taxing unit's no-new-revenue tax rate, as
19		-	defined by Chapter 26; and
20		-	(3) a reference in law to a taxing unit's rollback tax
21		-	rate is a reference to the taxing unit's voter-approval tax rate, as
22		-	defined by Chapter 26.
23		-	SECTION 3. Section 1.07(a), Tax Code, is amended to read as
24		-	follows:
25		-	(a) An official or agency required by this title to deliver
26		-	a notice to a property owner may deliver the notice by regular
27		-	first-class mail, with postage prepaid, unless this section or
28		-	another provision of this title requires or authorizes a different
29		-	method of delivery or the parties agree that the notice must be
30		-	delivered as provided by Section 1.085 or 1.086.
31		-	SECTION 4. Section 1.085(a), Tax Code, is amended to read as
	11	+	SECTION 1. This Act may be cited as the Texas Taxpayer
	12	+	Transparency Act of 2019.
	13	+	SECTION 2. Section 1.085(a), Tax Code, is amended to read as
32	14		follows:
33	15		(a) Notwithstanding any other provision in this title and
34	16		except as provided by this section, any notice, rendition,
35	17		application form, or completed application, or information
36	18		requested under Section 41.461(a)(2), that is required or permitted
37	19		by this title to be delivered between a chief appraiser, an
38	20		appraisal district, an appraisal review board, or any combination
39	21		of those persons and a property owner or [between a chief appraiser,
40	22		an appraisal district, an appraisal review board, or any
41	23		combination of those persons and] a person designated by a property
42	24		owner under Section 1.111(f) may be delivered in an electronic
43	25		format if the chief appraiser and the property owner or person
44	26		designated by the owner agree under this section.
45		-	SECTION 5. Chapter 1, Tax Code, is amended by adding Section
46		-	1.086 to read as follows:
47		-	Sec. 1.086. DELIVERY OF CERTAIN NOTICES BY E-MAIL. (a) On
48		-	the written request of the owner of a residential property that is
49		-	occupied by the owner as the owner's principal residence, the chief
50		-	appraiser of the appraisal district in which the property is
51		-	located shall send each notice required by this title related to the
52		-	following to the e-mail address of the owner:
53		-	(1) a change in value of the property;
54		-	(2) the eligibility of the property for an exemption;
55		-	or
56		-	(3) the grant, denial, cancellation, or other change
57		-	in the status of an exemption or exemption application applicable
58		-	to the property.
59		-	(b) A property owner must provide the e-mail address to
60		-	which the chief appraiser must send the notices described by
61		-	Subsection (a) in a request made under that subsection.
62		-	(c) A chief appraiser who delivers a notice electronically
63		-	under this section is not required to mail the same notice to the
64		-	property owner.
65		-	(d) A request made under this section remains in effect
66		-	until revoked by the property owner in a written revocation filed
67		-	with the chief appraiser.
68		-	(e) After a property owner makes a request under this
69		-	section and before a chief appraiser may deliver a notice
70		-	electronically under this section, the chief appraiser must send an
71		-	e-mail to the address provided by the property owner confirming the
72		-	owner's request to receive notices electronically.
73		-	(f) The chief appraiser of an appraisal district that
74		-	maintains an Internet website shall provide a form on the website
75		-	that a property owner may use to electronically make a request under
76		-	this section.
77		-	SECTION 6. Chapter 5, Tax Code, is amended by adding Section
	27	+	SECTION 3. Chapter 5, Tax Code, is amended by adding Section
78	28		5.01 to read as follows:
79	29		Sec. 5.01. PROPERTY TAX ADMINISTRATION ADVISORY BOARD.
80	30		(a) The comptroller shall appoint the property tax administration
81	31		advisory board to advise the comptroller with respect to the
82	32		division or divisions within the office of the comptroller with
83	33		primary responsibility for state administration of property
84	34		taxation and state oversight of appraisal districts. The advisory
85	35		board may make recommendations to the comptroller regarding
86	36		improving the effectiveness and efficiency of the property tax
87	37		system, best practices, and complaint resolution procedures.
88	38		(b) The advisory board is composed of at least six members
89	39		appointed by the comptroller. The members of the board should
90	40		include:
91	41		(1) representatives of property tax payers, appraisal
92	42		districts, assessors, and school districts; and
93	43		(2) a person who has knowledge or experience in
94	44		conducting ratio studies.
95	45		(c) The members of the advisory board serve at the pleasure
96	46		of the comptroller.
97	47		(d) Any advice to the comptroller relating to a matter
98	48		described by Subsection (a) that is provided by a member of the
99	49		advisory board must be provided at a meeting called by the
100	50		comptroller.
101	51		(e) Chapter 2110, Government Code, does not apply to the
102	52		advisory board.
103		-	SECTION 7. Sections 5.041(b), (c), (e-1), and (e-3), Tax
	53	+	SECTION 4. Sections 5.041(b), (c), (e-1), and (e-3), Tax
104	54		Code, are amended to read as follows:
105	55		(b) A member of the appraisal review board established for
106	56		an appraisal district must complete the course established under
107	57		Subsection (a). The course must provide at least eight hours of
108	58		classroom training and education. A member of the appraisal review
109	59		board may not participate in a hearing conducted by the board unless
110	60		the person has completed the course established under Subsection
111	61		(a) and received a certificate of course completion.
112	62		(c) The comptroller may contract with service providers to
113	63		assist with the duties imposed under Subsection (a), but the course
114	64		required may not be provided by an appraisal district, the chief
115	65		appraiser or another employee of an appraisal district, a member of
116	66		the board of directors of an appraisal district, a member of an
117	67		appraisal review board, or a taxing unit. The comptroller may
118	68		assess a fee to recover a portion of the costs incurred for the
119	69		training course, but the fee may not exceed $50 for each [per]
120	70		person trained. If the training is provided to an individual other
121	71		than a member of an appraisal review board, the comptroller may
122	72		assess a fee not to exceed $50 for each person trained.
123	73		(e-1) In addition to the course established under
124	74		Subsection (a), the comptroller shall approve curricula and provide
125	75		materials for use in a continuing education course for members of an
126	76		appraisal review board. The course must provide at least four hours
127	77		of classroom training and education. The curricula and materials
128	78		must include information regarding:
129	79		(1) the cost, income, and market data comparison
130	80		methods of appraising property;
131	81		(2) the appraisal of business personal property;
132	82		(3) the determination of capitalization rates for
133	83		property appraisal purposes;
134	84		(4) the duties of an appraisal review board;
135	85		(5) the requirements regarding the independence of an
136	86		appraisal review board from the board of directors and the chief
137	87		appraiser and other employees of the appraisal district;
138	88		(6) the prohibitions against ex parte communications
139	89		applicable to appraisal review board members;
140	90		(7) the Uniform Standards of Professional Appraisal
141	91		Practice;
142	92		(8) the duty of the appraisal district to substantiate
143	93		the district's determination of the value of property;
144	94		(9) the requirements regarding the equal and uniform
145	95		appraisal of property;
146	96		(10) the right of a property owner to protest the
147	97		appraisal of the property as provided by Chapter 41; and
148	98		(11) a detailed explanation of each of the actions
149	99		described by Sections 25.25, 41.41(a), 41.411, 41.412, 41.413,
150	100		41.42, and 41.43 so that members are fully aware of each of the
151	101		grounds on which a property appraisal can be appealed.
152	102		(e-3) The comptroller may contract with service providers
153	103		to assist with the duties imposed under Subsection (e-1), but the
154	104		course required by that subsection may not be provided by an
155	105		appraisal district, the chief appraiser or another employee of an
156	106		appraisal district, a member of the board of directors of an
157	107		appraisal district, a member of an appraisal review board, or a
158	108		taxing unit. The comptroller may assess a fee to recover a portion
159	109		of the costs incurred for the continuing education course, but the
160	110		fee may not exceed $50 for each person trained. If the training is
161	111		provided to an individual other than a member of an appraisal review
162	112		board, the comptroller may assess a fee not to exceed $50 for each
163	113		person trained.
164		-	SECTION 8. Chapter 5, Tax Code, is amended by adding Section
	114	+	SECTION 5. Chapter 5, Tax Code, is amended by adding Section
165	115		5.043 to read as follows:
166	116		Sec. 5.043. TRAINING OF ARBITRATORS. (a) This section
167	117		applies only to persons who have agreed to serve as arbitrators
168	118		under Chapter 41A.
169	119		(b) The comptroller shall:
170	120		(1) approve curricula and provide an arbitration
171	121		manual and other materials for use in training and educating
172	122		arbitrators;
173	123		(2) make all materials for use in training and
174	124		educating arbitrators freely available online; and
175	125		(3) establish and supervise a training program on
176	126		property tax law for the training and education of arbitrators.
177	127		(c) The training program must:
178	128		(1) emphasize the requirements regarding the equal and
179	129		uniform appraisal of property; and
180	130		(2) be at least four hours in length.
181	131		(d) The training program may be provided online. The
182	132		comptroller by rule may prescribe the manner by which the
183	133		comptroller may verify that a person taking the training program
184	134		online has taken and completed the program.
185	135		(e) The comptroller may contract with service providers to
186	136		assist with the duties imposed under Subsection (b), but the
187	137		training program may not be provided by an appraisal district, the
188	138		chief appraiser or another employee of an appraisal district, a
189	139		member of the board of directors of an appraisal district, a member
190	140		of an appraisal review board, or a taxing unit. The comptroller may
191	141		assess a fee to recover a portion of the costs incurred for the
192	142		training program, but the fee may not exceed $50 for each person
193	143		trained. If the training is provided to a person other than a
194	144		person who has agreed to serve as an arbitrator under Chapter 41A,
195	145		the comptroller may assess a fee not to exceed $50 for each person
196	146		trained.
197	147		(f) The comptroller shall prepare an arbitration manual for
198	148		use in the training program. The manual shall be updated regularly
199	149		and may be revised on request, in writing, to the comptroller. The
200	150		revised language must be approved by the unanimous agreement of a
201	151		committee selected by the comptroller and representing, equally,
202	152		taxpayers and chief appraisers. The person requesting the revision
203	153		must pay the costs of mediation if the comptroller determines that
204	154		mediation is required.
205		-	SECTION 9. Section 5.05, Tax Code, is amended by adding
206		-	~~Subsections~~ (c-1~~) and (c-2~~) to read as follows:
	155	+	SECTION 6. Section 5.05, Tax Code, is amended by adding
	156	+	Subsection (c-1) to read as follows:
207	157		(c-1) An appraisal district shall appraise property in
208	158		accordance with any appraisal manuals required by law to be
209	159		prepared and issued by the comptroller.
210		-	(c-2) Appraisal manuals required by law to be prepared and
211		-	issued by the comptroller for the purpose of determining the market
212		-	value of property shall be prepared based on generally accepted
213		-	appraisal methods and techniques.
214		-	SECTION 10. Section 5.07, Tax Code, is amended by adding
	160	+	SECTION 7. Section 5.07, Tax Code, is amended by adding
215	161		Subsections (f), (g), (h), (i), and (j) to read as follows:
216	162		(f) The comptroller shall prescribe tax rate calculation
217	163		forms to be used by the designated officer or employee of each:
218	164		(1) taxing unit other than a school district to
219		-	calculate and submit the no-new-revenue tax rate and the
220		-	voter-approval tax rate for the taxing unit as required by Chapter
221		-	26; and
	165	+	calculate and submit the no-new-revenue tax rate and the rollback
	166	+	tax rate for the taxing unit as required by Chapter 26; and
222	167		(2) school district to:
223	168		(A) calculate and submit the no-new-revenue tax
224		-	rate and the ~~voter-approval~~ tax rate for the district as required by
	169	+	rate and the rollback tax rate for the district as required by
225	170		Chapter 26; and
226	171		(B) submit the rate to maintain the same amount
227	172		of state and local revenue per weighted student that the district
228	173		received in the school year beginning in the preceding tax year as
229	174		required by Chapter 26.
230	175		(g) The forms described by Subsection (f) must be in an
231	176		electronic format and:
232	177		(1) have blanks that can be filled in electronically;
233	178		(2) be capable of being certified by the designated
234	179		officer or employee after completion as accurately calculating the
235	180		applicable tax rates and using values that are the same as the
236	181		values shown in, as applicable:
237	182		(A) the taxing unit's certified appraisal roll;
238	183		or
239	184		(B) the certified estimate of taxable value of
240	185		property in the taxing unit prepared under Section 26.01(a-1); and
241	186		(3) be capable of being electronically incorporated
242	187		into the property tax database maintained by each appraisal
243	188		district under Section 26.17 and submitted electronically to the
244	189		county assessor-collector of each county in which all or part of the
245	190		territory of the taxing unit is located.
246	191		(h) For purposes of Subsections (f) and (g), the comptroller
247	192		shall use the forms published on the comptroller's Internet website
248	193		as of January 1, 2019, modified as necessary to comply with the
249	194		requirements of this section. The comptroller shall update the
250	195		forms as necessary to reflect formatting or other nonsubstantive
251	196		changes.
252	197		(i) The comptroller may revise the forms to reflect
253	198		substantive changes other than those described by Subsection (h) or
254	199		on receipt of a request in writing. A revision under this
255	200		subsection must be approved by the agreement of a majority of the
256	201		members of a committee selected by the comptroller who are present
257	202		at a committee meeting at which a quorum is present. The members of
258	203		the committee must represent, equally, taxpayers, taxing units or
259	204		persons designated by taxing units, and assessors. In the case of a
260	205		revision for which the comptroller receives a request in writing,
261	206		the person requesting the revision shall pay the costs of mediation
262	207		if the comptroller determines that mediation is required.
263	208		(j) A meeting of the committee held under Subsection (i) is
264	209		not subject to the requirements of Chapter 551, Government Code.
265		-	SECTION 11. Section 5.09, Tax Code, is amended by amending
	210	+	SECTION 8. Section 5.09, Tax Code, is amended by amending
266	211		Subsection (a) and adding Subsection (a-1) to read as follows:
267	212		(a) The comptroller shall prepare a biennial report of the
268	213		total appraised values and taxable values of taxable property by
269	214		category and the tax rates of each county, municipality, special
270	215		district, and school district in effect for the two years preceding
271	216		the year in which the report is prepared.
272	217		(a-1) The comptroller shall:
273	218		(1) prescribe the format by which an appraisal
274	219		district or taxing unit must submit information under this section
275	220		to the comptroller;
276	221		(2) collect and review in detail the information
277	222		submitted that relates to each county, municipality, and school
278	223		district; and
279	224		(3) collect and review the information submitted that
280	225		relates to each special district.
281		-	SECTION 12. Section 5.091, Tax Code, is amended to read as
	226	+	SECTION 9. Section 5.091, Tax Code, is amended to read as
282	227		follows:
283	228		Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the
284	229		comptroller shall prepare a list that includes the total tax rate
285	230		imposed by each taxing unit in this state, as [other than a school
286	231		district, if the tax rate is] reported to the comptroller by each
287	232		appraisal district, for the year [preceding the year] in which the
288	233		list is prepared. The comptroller shall:
289	234		(1) prescribe the manner in which and deadline by
290	235		which appraisal districts are required to submit the tax rates to
291	236		the comptroller; and
292	237		(2) list the tax rates alphabetically according to:
293	238		(A) the county or counties in which each taxing
294	239		unit is located; and
295	240		(B) the name of each taxing unit [in descending
296	241		order].
297	242		(b) Not later than January 1 [December 31] of the following
298	243		[each] year, the comptroller shall publish on the comptroller's
299	244		Internet website the list required by Subsection (a).
300		-	SECTION 13. Sections 5.102(a) and (c), Tax Code, are
	245	+	SECTION 10. Sections 5.102(a) and (c), Tax Code, are
301	246		amended to read as follows:
302	247		(a) At least once every two years, the comptroller shall
303	248		review the governance of each appraisal district, the taxpayer
304	249		assistance provided by each appraisal district, and the operating
305	250		and appraisal standards, procedures, and methodology used by each
306	251		appraisal district, to determine compliance with generally
307	252		accepted standards, procedures, and methodology, including
308	253		compliance with standards, procedures, and methodology prescribed
309	254		by any appraisal manuals required by law to be prepared and issued
310	255		by the comptroller. After consultation with the property tax
311	256		administration advisory board [committee created under Section
312	257		403.302, Government Code], the comptroller by rule may establish
313	258		procedures and standards for conducting and scoring the review.
314	259		(c) At the conclusion of the review, the comptroller shall,
315	260		in writing, notify the appraisal district concerning its
316	261		performance in the review. If the review results in a finding that
317	262		an appraisal district is not in compliance with generally accepted
318	263		standards, procedures, and methodology, including compliance with
319	264		standards, procedures, and methodology prescribed by any appraisal
320	265		manuals required by law to be prepared and issued by the
321	266		comptroller, the comptroller shall deliver a report that details
322	267		the comptroller's findings and recommendations for improvement to:
323	268		(1) the appraisal district's chief appraiser and board
324	269		of directors; and
325	270		(2) the superintendent and board of trustees of each
326	271		school district participating in the appraisal district.
327		-	SECTION 14. Chapter 5, Tax Code, is amended by adding
	272	+	SECTION 11. Chapter 5, Tax Code, is amended by adding
328	273		Section 5.104 to read as follows:
329		-	Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT.
330		-	~~(a) The~~ comptroller shall:
	274	+	Sec. 5.104. APPRAISAL REVIEW BOARD SURVEY; REPORT. (a) The
	275	+	comptroller shall:
331	276		(1) prepare an appraisal review board survey that
332	277		allows an individual described by Subsection (b) to submit comments
333	278		and suggestions to the comptroller regarding an appraisal review
334	279		board;
335	280		(2) prepare instructions for completing and
336	281		submitting the survey; and
337	282		(3) implement and maintain a method that allows an
338	283		individual described by Subsection (b) to electronically complete
339	284		and submit the survey through a uniform resource locator (URL)
340	285		address.
341	286		(b) The following individuals who attend a hearing in person
342	287		or by telephone conference call on a motion filed under Section
343	288		25.25 to correct the appraisal roll or a protest under Chapter 41
344	289		may complete and submit a survey under this section:
345	290		(1) a property owner whose property is the subject of
346	291		the motion or protest;
347	292		(2) the designated agent of the owner; or
348	293		(3) a designated representative of the appraisal
349	294		district in which the motion or protest is filed.
350	295		(c) The survey must allow an individual to submit comments
351	296		and suggestions regarding:
352	297		(1) the matters listed in Section 5.103(b); and
353	298		(2) any other matter related to the fairness and
354	299		efficiency of the appraisal review board.
355	300		(d) An appraisal district must provide to each property
356	301		owner or designated agent of the owner who is authorized to submit a
357	302		survey under this section a notice that states that the owner or
358	303		agent:
359	304		(1) is entitled to complete and submit the survey;
360	305		(2) may submit the survey to the comptroller:
361	306		(A) in person;
362	307		(B) by mail;
363	308		(C) by electronic mail; or
364	309		(D) through the uniform resource locator (URL)
365	310		address described by Subsection (a)(3); and
366	311		(3) may obtain a paper copy of the survey and
367	312		instructions for completing the survey at the appraisal office.
368	313		(e) The notice described by Subsection (d) must include the
369	314		uniform resource locator (URL) address described by Subsection
370	315		(a)(3).
371	316		(f) An appraisal district must provide the notice described
372	317		by Subsection (d) to a property owner or the designated agent of the
373	318		owner:
374	319		(1) at or before the first hearing on the motion or
375	320		protest described by Subsection (b) by the appraisal review board
376	321		established for the appraisal district or by a panel of the board;
377	322		and
378	323		(2) with each order under Section 25.25 or 41.47
379	324		determining a motion or protest, as applicable, delivered by the
380	325		board or a panel of the board.
381	326		(g) At or before the first hearing on the motion or protest
382	327		described by Subsection (b) by the appraisal review board
383	328		established for the appraisal district or by a panel of the board,
384	329		the board or panel must provide verbal notice to the property owner
385	330		or designated agent of the owner of the owner or agent's right to
386	331		complete and submit the survey.
387	332		(h) Notwithstanding Subsections (d), (f), and (g), if an
388	333		appraisal district provides the notice described by Subsection (d),
389	334		or an appraisal review board provides the verbal notice required by
390	335		Subsection (g), to a property owner or the designated agent of the
391	336		owner at or before a hearing on a motion or protest described by
392	337		Subsection (b), the appraisal district or board, as applicable, is
393	338		not required to provide another notice in the same manner to the
394	339		owner or agent at or before another hearing on a motion or protest
395	340		held on the same day.
396	341		(i) An individual who elects to submit the survey must
397		-	submit the survey to the comptroller as provided by this section.
398		-	An individual may submit only one survey for each hearing.
	342	+	submit the survey to the comptroller as provided by this section. An
	343	+	individual may submit only one survey for each hearing.
399	344		(j) The comptroller shall allow an individual to submit a
400	345		survey to the comptroller in the following manner:
401	346		(1) in person;
402	347		(2) by mail;
403	348		(3) by electronic mail; or
404	349		(4) through the uniform resource locator (URL) address
405	350		described by Subsection (a)(3).
406	351		(k) An appraisal district may not require a property owner
407	352		or the designated agent of the owner to complete a survey at the
408	353		appraisal office.
409	354		(l) The comptroller shall issue an annual report that
410	355		summarizes the information included in the surveys submitted during
411	356		the preceding tax year. The report may not disclose the identity of
412	357		an individual who submitted a survey.
413	358		(m) The comptroller may adopt rules necessary to implement
414	359		this section.
415		-	SECTION 15. Section 5.13(d), Tax Code, is amended to read as
	360	+	SECTION 12. Section 5.13(d), Tax Code, is amended to read as
416	361		follows:
417	362		(d) In conducting a general audit, the comptroller shall
418	363		consider and report on:
419	364		(1) the extent to which the district complies with
420	365		applicable law or generally accepted standards of appraisal or
421	366		other relevant practice, including appraisal standards and
422	367		practices prescribed by any appraisal manuals required by law to be
423	368		prepared and issued by the comptroller;
424	369		(2) the uniformity and level of appraisal of major
425	370		kinds of property and the cause of any significant deviations from
426	371		ideal uniformity and equality of appraisal of major kinds of
427	372		property;
428	373		(3) duplication of effort and efficiency of operation;
429	374		(4) the general efficiency, quality of service, and
430	375		qualification of appraisal district personnel; and
431	376		(5) except as otherwise provided by Subsection (b) [of
432	377		this section], any other matter included in the request for the
433	378		audit.
434		-	SECTION 16. Section 6.035(a-1), Tax Code, is amended to
	379	+	SECTION 13. Section 6.035(a-1), Tax Code, is amended to
435	380		read as follows:
436	381		(a-1) An individual is ineligible to serve on an appraisal
437	382		district board of directors if the individual has engaged in the
438	383		business of appraising property for compensation for use in
439	384		proceedings under this title or of representing property owners for
440	385		compensation in proceedings under this title in the appraisal
441	386		district at any time during the preceding three [five] years.
442		-	SECTION 17. Subchapter A, Chapter 6, Tax Code, is amended by
443		-	adding Section 6.054 to read as follows:
444		-	Sec. 6.054. RESTRICTION ON EMPLOYMENT BY APPRAISAL
445		-	DISTRICT. An individual may not be employed by an appraisal
446		-	district if the individual is:
447		-	(1) an officer of a taxing unit that participates in
448		-	the appraisal district; or
449		-	(2) an employee of a taxing unit that participates in
450		-	the appraisal district.
451		-	SECTION 18. Section 6.15, Tax Code, is amended by adding
	387	+	SECTION 14. Section 6.15, Tax Code, is amended by adding
452	388		Subsection (c-1) to read as follows:
453	389		(c-1) Subsections (a) and (b) do not prohibit a member of
454	390		the board of directors of an appraisal district from transmitting
455	391		to the chief appraiser without comment a complaint by a property
456	392		owner or taxing unit about the appraisal of a specific property,
457	393		provided that the transmission is in writing.
458		-	SECTION 19. Subchapter A, Chapter 6, Tax Code, is amended by
459		-	adding Section 6.16 to read as follows:
460		-	Sec. 6.16. RESIDENTIAL PROPERTY OWNER ASSISTANCE. (a) The
461		-	chief appraiser of an appraisal district may maintain a list of the
462		-	following individuals who have designated themselves as an
463		-	individual who will provide free assistance to an owner of
464		-	residential property that is occupied by the owner as the owner's
465		-	principal residence:
466		-	(1) a real estate broker or sales agent licensed under
467		-	Chapter 1101, Occupations Code;
468		-	(2) a real estate appraiser licensed or certified
469		-	under Chapter 1103, Occupations Code; or
470		-	(3) a property tax consultant registered under Chapter
471		-	1152, Occupations Code.
472		-	(b) On the request of an owner described by Subsection (a),
473		-	a chief appraiser who maintains a list under this section shall
474		-	provide to the owner a copy of the list.
475		-	(c) A list must:
476		-	(1) be organized by county;
477		-	(2) be available on the appraisal district's Internet
478		-	website, if the appraisal district maintains a website; and
479		-	(3) provide the name, contact information, and job
480		-	title of each individual who will provide free assistance.
481		-	(d) A person must designate himself or herself as an
482		-	individual who will provide free assistance by completing a form
483		-	prescribed by the chief appraiser and submitting the form to the
484		-	chief appraiser.
485		-	SECTION 20. Section 6.41, Tax Code, is amended by amending
	394	+	SECTION 15. Section 6.41, Tax Code, is amended by amending
486	395		Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and
487	396		(d-10) to read as follows:
488	397		(b) Except as provided by Subsection (b-1) or (b-2), an
489	398		appraisal review [The] board consists of three members.
490	399		(b-1) An appraisal [However, the] district board of
491	400		directors by resolution of a majority of the board's [its] members
492	401		may increase the size of the district's appraisal review board to
493	402		the number of members the board of directors considers appropriate.
494	403		(b-2) An appraisal district board of directors for a
495	404		district established in a county with a population of one million or
496	405		more by resolution of a majority of the board's members shall
497	406		increase the size of the district's appraisal review board to the
498	407		number of members the board of directors considers appropriate to
499	408		manage the duties of the appraisal review board, including the
500	409		duties of each special panel established under Section 6.425.
501	410		(d-9) In selecting individuals who are to serve as members
502	411		of the appraisal review board for an appraisal district described
503	412		by Subsection (b-2), the local administrative district judge shall
504	413		select an adequate number of qualified individuals to permit the
505	414		chairman of the appraisal review board to fill the positions on each
506	415		special panel established under Section 6.425.
507	416		(d-10) Upon selection of the individuals who are to serve as
508	417		members of the appraisal review board, the local administrative
509	418		district judge shall enter an appropriate order designating such
510	419		members and setting each member's respective term of office, as
511	420		provided elsewhere in this section.
512		-	SECTION 21. Sections 6.412(a) and (d), Tax Code, are
	421	+	SECTION 16. Sections 6.412(a) and (d), Tax Code, are
513	422		amended to read as follows:
514	423		(a) An individual is ineligible to serve on an appraisal
515	424		review board if the individual:
516	425		(1) is related within the second degree by
517	426		consanguinity or affinity, as determined under Chapter 573,
518	427		Government Code, to an individual who is engaged in the business of
519	428		appraising property for compensation for use in proceedings under
520	429		this title or of representing property owners for compensation in
521	430		proceedings under this title in the appraisal district for which
522	431		the appraisal review board is established;
523	432		(2) owns property on which delinquent taxes have been
524	433		owed to a taxing unit for more than 60 days after the date the
525	434		individual knew or should have known of the delinquency unless:
526	435		(A) the delinquent taxes and any penalties and
527	436		interest are being paid under an installment payment agreement
528	437		under Section 33.02; or
529	438		(B) a suit to collect the delinquent taxes is
530	439		deferred or abated under Section 33.06 or 33.065; or
531	440		(3) is related within the third degree by
532	441		consanguinity or within the second degree by affinity, as
533	442		determined under Chapter 573, Government Code, to a member of:
534	443		(A) the appraisal district's board of directors;
535	444		or
536	445		(B) the appraisal review board.
537	446		(d) A person is ineligible to serve on the appraisal review
538	447		board of an appraisal district established for a county described
539	448		by Section 6.41(d-1) [having a population of more than 100,000] if
540	449		the person:
541	450		(1) is a former member of the board of directors,
542	451		former officer, or former employee of the appraisal district;
543	452		(2) served as a member of the governing body or officer
544	453		of a taxing unit for which the appraisal district appraises
545	454		property, until the fourth anniversary of the date the person
546	455		ceased to be a member or officer; [or]
547	456		(3) appeared before the appraisal review board for
548	457		compensation during the two-year period preceding the date the
549	458		person is appointed; or
550	459		(4) served for all or part of three previous terms as a
551	460		board member or auxiliary board member on the appraisal review
552	461		board.
553		-	SECTION 22. Section 6.414(d), Tax Code, is amended to read
	462	+	SECTION 17. Section 6.414(d), Tax Code, is amended to read
554	463		as follows:
555	464		(d) An auxiliary board member may hear taxpayer protests
556	465		before the appraisal review board. An auxiliary board member may
557	466		not hear taxpayer protests before a special panel established under
558	467		Section 6.425 unless the member is eligible to be appointed to the
559	468		special panel. If one or more auxiliary board members sit on a
560	469		panel established under Section 6.425 or 41.45 to conduct a protest
561	470		hearing, the number of regular appraisal review board members
562	471		required by that section to constitute the panel is reduced by the
563	472		number of auxiliary board members sitting. An auxiliary board
564	473		member sitting on a panel is considered a regular board member for
565	474		all purposes related to the conduct of the hearing.
566		-	SECTION 23. Section 6.42, Tax Code, is amended by amending
	475	+	SECTION 18. Section 6.42, Tax Code, is amended by amending
567	476		Subsection (a) and adding Subsection (d) to read as follows:
568	477		(a) A majority of the appraisal review board constitutes a
569	478		quorum. The local administrative district judge under Subchapter
570	479		D, Chapter 74, Government Code, in the county in which [board of
571	480		directors of] the appraisal district is established [by resolution]
572	481		shall select a chairman and a secretary from among the members of
573	482		the appraisal review board. The judge [board of directors of the
574	483		appraisal district] is encouraged to select as chairman [of the
575	484		appraisal review board] a member of the appraisal review board, if
576	485		any, who has a background in law and property appraisal.
577	486		(d) The concurrence of a majority of the members of the
578	487		appraisal review board present at a meeting of the board is
579	488		sufficient for a recommendation, determination, decision, or other
580	489		action by the board. The concurrence of a majority of the members
581	490		of a panel of the board present at a meeting of the panel is
582	491		sufficient for a recommendation by the panel. The concurrence of
583	492		more than a majority of the members of the board or panel may not be
584	493		required.
585		-	SECTION 24. Subchapter C, Chapter 6, Tax Code, is amended by
	494	+	SECTION 19. Subchapter C, Chapter 6, Tax Code, is amended by
586	495		adding Section 6.425 to read as follows:
587	496		Sec. 6.425. SPECIAL APPRAISAL REVIEW BOARD PANELS IN
588	497		CERTAIN DISTRICTS. (a) This section applies only to the appraisal
589	498		review board for an appraisal district described by Section
590	499		6.41(b-2).
591	500		(b) The appraisal review board shall establish special
592	501		panels to conduct protest hearings under Chapter 41 relating to
593	502		property that:
594		-	(1) has an appraised value as determined by the
595		-	appraisal district equal to or greater than the minimum eligibility
596		-	amount determined as provided by Subsection (g); and
	503	+	(1) has an appraised value of $50 million or more as
	504	+	determined by the appraisal district; and
597	505		(2) is included in one of the following
598	506		classifications:
599	507		(A) commercial real and personal property;
600	508		(B) real and personal property of utilities;
601	509		(C) industrial and manufacturing real and
602	510		personal property; and
603	511		(D) multifamily residential real property.
604	512		(c) Each special panel described by this section consists of
605	513		three members of the appraisal review board appointed by the
606	514		chairman of the board.
607	515		(d) To be eligible to be appointed to a special panel
608	516		described by this section, a member of the appraisal review board
609	517		must:
610	518		(1) hold a juris doctor or equivalent degree;
611	519		(2) hold a master of business administration degree;
612	520		(3) be licensed as a certified public accountant under
613	521		Chapter 901, Occupations Code;
614	522		(4) be accredited by the American Society of
615	523		Appraisers as an accredited senior appraiser;
616	524		(5) possess an MAI professional designation from the
617	525		Appraisal Institute;
618	526		(6) possess a Certified Assessment Evaluator (CAE)
619	527		professional designation from the International Association of
620	528		Assessing Officers;
621	529		(7) have at least 10 years of experience in property
622	530		tax appraisal or consulting; or
623	531		(8) be licensed as a real estate broker or sales agent
624	532		under Chapter 1101, Occupations Code.
625	533		(e) Notwithstanding Subsection (d), the chairman of the
626	534		appraisal review board may appoint to a special panel described by
627	535		this section a member of the appraisal review board who does not
628	536		meet the qualifications prescribed by that subsection if:
629	537		(1) the number of persons appointed to the board by the
630	538		local administrative district judge who meet those qualifications
631	539		is not sufficient to fill the positions on each special panel; and
632	540		(2) the board member being appointed to the panel
633	541		holds a bachelor's degree in any field.
634	542		(f) In addition to conducting protest hearings relating to
635	543		property described by Subsection (b) of this section, a special
636	544		panel may conduct protest hearings under Chapter 41 relating to
637	545		property not described by Subsection (b) of this section as
638	546		assigned by the chairman of the appraisal review board.
639		-	(g) By February 1 or as soon thereafter as practicable, the
640		-	comptroller shall determine the minimum eligibility amount for the
641		-	current tax year for purposes of Subsection (b)(1) and publish that
642		-	amount in the Texas Register. The minimum eligibility amount for
643		-	the 2020 tax year is $50 million. For each succeeding tax year, the
644		-	minimum eligibility amount is equal to the minimum eligibility
645		-	amount for the preceding tax year as adjusted by the comptroller to
646		-	reflect the inflation rate.
647		-	(h) In this section:
648		-	(1) "Consumer price index" means the Consumer Price
649		-	Index for All Urban Consumers (CPI-U), U.S. City Average, published
650		-	by the Bureau of Labor Statistics of the United States Department of
651		-	Labor.
652		-	(2) "Inflation rate" means the amount, expressed in
653		-	decimal form rounded to the nearest thousandth, computed by
654		-	determining the percentage change in the consumer price index for
655		-	the preceding calendar year as compared to the consumer price index
656		-	for the calendar year preceding that calendar year.
657		-	SECTION 25. Section 11.24, Tax Code, is amended to read as
658		-	follows:
659		-	Sec. 11.24. HISTORIC SITES. (a) The governing body of a
660		-	taxing unit by official action of the body adopted in the manner
661		-	required by law for official actions may exempt from taxation part
662		-	or all of the assessed value of a structure or archeological site
663		-	and the land necessary for access to and use of the structure or
664		-	archeological site, if the structure or archeological site is:
665		-	(1) designated as a Recorded Texas Historic Landmark
666		-	under Chapter 442, Government Code, or a state archeological
667		-	landmark under Chapter 191, Natural Resources Code, by the Texas
668		-	Historical Commission; or
669		-	(2) designated as a historically or archeologically
670		-	significant site in need of tax relief to encourage its
671		-	preservation pursuant to an ordinance or other law adopted by the
672		-	governing body of the taxing unit.
673		-	(b) The governing body of a taxing unit may not repeal or
674		-	reduce the amount of an exemption granted under Subsection (a) for a
675		-	property that otherwise qualifies for the exemption unless:
676		-	(1) the owner of the property consents to the repeal or
677		-	reduction; or
678		-	(2) the taxing unit provides written notice of the
679		-	repeal or reduction to the owner not later than five years before
680		-	the date the governing body repeals or reduces the exemption.
681		-	SECTION 26. Section 11.4391(a), Tax Code, is amended to
682		-	read as follows:
683		-	(a) The chief appraiser shall accept and approve or deny an
684		-	application for an exemption for freeport goods under Section
685		-	11.251 after the deadline for filing it has passed if it is filed on
686		-	or before the [not] later of:
687		-	(1) [than] June 15; or
688		-	(2) if applicable, the 60th day after the date on which
689		-	the chief appraiser delivers notice to the property owner under
690		-	Section 22.22.
691		-	SECTION 27. Section 22.23(d), Tax Code, is amended to read
	547	+	SECTION 20. Section 22.23(d), Tax Code, is amended to read
692	548		as follows:
693	549		(d) Notwithstanding any other provision of this section,
694	550		rendition statements and property reports required to be filed by a
695	551		property owner [for property] regulated by the Public Utility
696	552		Commission of Texas, the Railroad Commission of Texas, the federal
697	553		Surface Transportation Board, or the Federal Energy Regulatory
698	554		Commission must be delivered to the chief appraiser not later than
699		-	April 30, except as provided by Section 22.02. On written request
700		-	by the property owner, the [The] chief appraiser shall extend the
701		-	filing deadline to May 15. The chief appraiser may further extend
702		-	the [filing] deadline an additional 15 days for good cause shown in
703		-	writing by the property owner.
704		-	SECTION 28. Section 23.01, Tax Code, is amended by adding
705		-	Subsection (h) to read as follows:
	555	+	April 30, except as provided by Section 22.02. The chief appraiser
	556	+	shall [may] extend the filing deadline in the manner prescribed by
	557	+	Subsection (b) [15 days for good cause shown in writing by the
	558	+	property owner].
	559	+	SECTION 21. Section 23.01, Tax Code, is amended by amending
	560	+	Subsection (b) and adding Subsection (h) to read as follows:
	561	+	(b) The market value of property shall be determined by the
	562	+	application of generally accepted appraisal methods and
	563	+	techniques, including appraisal methods and techniques prescribed
	564	+	by any appraisal manuals required by law to be prepared and issued
	565	+	by the comptroller. If the appraisal district determines the
	566	+	appraised value of a property using mass appraisal standards, the
	567	+	mass appraisal standards must comply with the Uniform Standards of
	568	+	Professional Appraisal Practice. The same or similar appraisal
	569	+	methods and techniques shall be used in appraising the same or
	570	+	similar kinds of property. However, each property shall be
	571	+	appraised based upon the individual characteristics that affect the
	572	+	property's market value, and all available evidence that is
	573	+	specific to the value of the property shall be taken into account in
	574	+	determining the property's market value.
706	575		(h) Appraisal methods and techniques included in the most
707	576		recent versions of the following are considered generally accepted
708	577		appraisal methods and techniques for the purposes of this title:
709	578		(1) the Appraisal of Real Estate published by the
710	579		Appraisal Institute;
711	580		(2) the Dictionary of Real Estate Appraisal published
712	581		by the Appraisal Institute;
713	582		(3) the Uniform Standards of Professional Appraisal
714		-	Practice published by The Appraisal Foundation; and
715		-	(4) a publication that includes information related to
716		-	mass appraisal.
717		-	SECTION 29. Section 25.19, Tax Code, is amended by amending
	583	+	Practice published by The Appraisal Foundation;
	584	+	(4) a publication of the International Association of
	585	+	Assessing Officers that includes information related to mass
	586	+	appraisal; and
	587	+	(5) any other verifiable authority if none of the
	588	+	publications described by Subdivisions (1)-(4) includes a
	589	+	generally accepted appraisal methodology or technique applicable
	590	+	to the appraisal of one or more classes of property.
	591	+	SECTION 22. Section 25.19, Tax Code, is amended by amending
718	592		Subsections (b) and (i) and adding Subsections (b-3) and (b-4) to
719	593		read as follows:
720	594		(b) The chief appraiser shall separate real from personal
721	595		property and include in the notice for each:
722	596		(1) a list of the taxing units in which the property is
723	597		taxable;
724	598		(2) the appraised value of the property in the
725	599		preceding year;
726	600		(3) the taxable value of the property in the preceding
727	601		year for each taxing unit taxing the property;
728	602		(4) the appraised value of the property for the
729	603		current year, the kind and amount of each exemption and partial
730	604		exemption, if any, approved for the property for the current year
731	605		and for the preceding year, and, if an exemption or partial
732	606		exemption that was approved for the preceding year was canceled or
733	607		reduced for the current year, the amount of the exemption or partial
734	608		exemption canceled or reduced;
735	609		(5) [if the appraised value is greater than it was in
736	610		the preceding year, the amount of tax that would be imposed on the
737	611		property on the basis of the tax rate for the preceding year;
738		-	[(6)] in italic typeface, the following ~~statement:~~
739		-	"The Texas Legislature does not set the amount of your ~~local taxes.~~
740		-	Your property tax burden is decided by your locally ~~elected~~
741		-	officials, and all inquiries concerning your taxes should be
742		-	directed to those officials";
	612	+	[(6)] in italic typeface, the following
	613	+	statement: "The Texas Legislature does not set the amount of your
	614	+	local taxes. Your property tax burden is decided by your locally
	615	+	elected officials, and all inquiries concerning your taxes should
	616	+	be directed to those officials";
743	617		(6) [(7)] a detailed explanation of the time and
744	618		procedure for protesting the value;
745	619		(7) [(8)] the date and place the appraisal review
746	620		board will begin hearing protests; and
747	621		(8) [(9)] a brief explanation that the governing body
748	622		of each taxing unit decides whether or not taxes on the property
749	623		will increase and the appraisal district only determines the value
750	624		of the property.
751	625		(b-3) This subsection applies only to an appraisal district
752	626		described by Section 6.41(b-2). In addition to the information
753	627		required by Subsection (b), the chief appraiser shall state in a
754	628		notice of appraised value of property described by Section 6.425(b)
755	629		that the property owner has the right to have a protest relating to
756	630		the property heard by a special panel of the appraisal review board.
757	631		(b-4) Subsection (b)(5) applies only to a notice of
758	632		appraised value required to be delivered by the chief appraiser of
759	633		an appraisal district established in a county with a population of
760	634		less than 120,000. This subsection expires January 1, 2022.
761	635		(i) Delivery with a notice required by Subsection (a) or (g)
762	636		of a copy of the pamphlet published by the comptroller under Section
763	637		5.06 or a copy of the notice published by the chief appraiser under
764	638		Section 41.70 is sufficient to comply with the requirement that the
765	639		notice include the information specified by Subsection (b)(6)
766	640		[(b)(7)] or (g)(3), as applicable.
767		-	SECTION 30. Chapter 25, Tax Code, is amended by adding
768		-	Sections 25.192 and 25.193 to read as follows:
769		-	Sec. 25.192. NOTICE OF RESIDENCE HOMESTEAD EXEMPTION
770		-	ELIGIBILITY. (a) This section applies only to residential
771		-	property that has not qualified for a residence homestead exemption
772		-	in the current tax year.
773		-	(b) If the records of the appraisal district indicate that
774		-	the address of the property is also the address of the owner of the
775		-	property, the chief appraiser must send to the property owner a
776		-	notice that contains:
777		-	(1) the following statement in boldfaced 18-point type
778		-	at the top of the first page of the notice: "NOTICE: A residence
779		-	homestead exemption from ad valorem taxation is NOT currently being
780		-	allowed on the property listed below. However, our records show
781		-	that this property may qualify for a residence homestead exemption,
782		-	which will reduce your taxes.";
783		-	(2) following the statement described by Subdivision
784		-	(1), the following statement in 12-point type: "According to the
785		-	records of the appraisal district, the property described in this
786		-	notice may be your primary residence and may qualify for a residence
787		-	homestead exemption from ad valorem taxation. If the property is
788		-	your home and you occupy it as your primary residence, the property
789		-	likely qualifies for one or more residence homestead exemptions,
790		-	which will reduce the amount of taxes imposed on the property. The
791		-	form needed to apply for a residence homestead exemption is
792		-	enclosed. Although the form may state that the deadline for filing
793		-	an application for a residence homestead exemption is April 30, a
794		-	late application for a residence homestead exemption will be
795		-	accepted if filed before February 1, (insert year application must
796		-	be filed). There is no fee or charge for filing an application or a
797		-	late application for a residence homestead exemption."; and
798		-	(3) following the statement described by Subdivision
799		-	(2), the address to which the notice is sent.
800		-	(c) The notice required by this section must be accompanied
801		-	by an application form for a residence homestead exemption.
802		-	(d) If a property owner has elected to receive notices by
803		-	e-mail as provided by Section 1.086, the notice required by this
804		-	section must be sent in that manner separately from any other notice
805		-	sent to the property owner by the chief appraiser.
806		-	Sec. 25.193. NOTICE OF CERTAIN CANCELED OR REDUCED
807		-	EXEMPTIONS. (a) By April 1 or as soon thereafter as practicable if
808		-	the property is a single-family residence that qualifies for an
809		-	exemption under Section 11.13, or by May 1 or as soon thereafter as
810		-	practicable in connection with residential property that does not
811		-	qualify for an exemption under Section 11.13, the chief appraiser
812		-	shall deliver a clear and understandable written notice to a
813		-	property owner if an exemption or partial exemption that was
814		-	approved for the preceding year was canceled or reduced for the
815		-	current year.
816		-	(b) If a property owner has elected to receive notices by
817		-	e-mail as provided by Section 1.086, for property described by that
818		-	section, the notice required by this section must be sent in that
819		-	manner regardless of whether the information was also included in a
820		-	notice under Section 25.19 and must be sent separately from any
821		-	other notice sent to the property owner by the chief appraiser.
822		-	SECTION 31. Section 26.01, Tax Code, is amended by adding
	641	+	SECTION 23. Section 26.01, Tax Code, is amended by adding
823	642		Subsection (a-1) to read as follows:
824	643		(a-1) If by July 20 the appraisal review board for an
825	644		appraisal district has not approved the appraisal records for the
826	645		district as required under Section 41.12, the chief appraiser shall
827	646		not later than July 25 prepare and certify to the assessor for each
828	647		taxing unit participating in the district an estimate of the
829	648		taxable value of property in that taxing unit.
830		-	SECTION 32. Section 26.012, Tax Code, is amended by adding
831		-	Subdivisions (8-a) and (19) and amending Subdivisions (10) and (13)
832		-	to read as follows:
833		-	(8-a) "De minimis rate" means the rate equal to the sum
	649	+	SECTION 24. Section 26.012, Tax Code, is amended by adding
	650	+	Subdivisions (8-a), (8-b), (10-a), and (19) and amending
	651	+	Subdivision (10) to read as follows:
	652	+	(8-a) "De minimis amount" means the amount for the
	653	+	current tax year published by the comptroller under Section
	654	+	26.04(b-1).
	655	+	(8-b) "De minimis rate" means the rate equal to the sum
834	656		of:
835	657		(A) a taxing unit's no-new-revenue maintenance
836	658		and operations rate;
837	659		(B) the rate that, when applied to a taxing
838	660		unit's current total value, will impose an amount of taxes equal to
839		-	~~$500,000~~; and
	661	+	the de minimis amount; and
840	662		(C) a taxing unit's current debt rate.
841	663		(10) "Excess collections" means the amount, if any, by
842	664		which debt taxes collected in the preceding year exceeded the
843	665		amount anticipated in the preceding year's calculation of the
844		-	voter-approval tax [rollback] rate, as certified by the collector
845		-	under Section 26.04(b) [of this code].
846		-	(13) "Last year's levy" means the total of:
847		-	(A) the amount of taxes that would be generated
848		-	by multiplying the total tax rate adopted by the governing body in
849		-	the preceding year by the total taxable value of property on the
850		-	appraisal roll for the preceding year, including:
851		-	(i) taxable value that was reduced in an
852		-	appeal under Chapter 42; [and]
853		-	(ii) all appraisal roll supplements and
854		-	corrections other than corrections made pursuant to Section
855		-	25.25(d), as of the date of the calculation, except that last year's
856		-	taxable value for a school district excludes the total value of
857		-	homesteads that qualified for a tax limitation as provided by
858		-	Section 11.26 and last year's taxable value for a county,
859		-	municipality, or junior college district excludes the total value
860		-	of homesteads that qualified for a tax limitation as provided by
861		-	Section 11.261; and
862		-	(iii) the portion of taxable value of
863		-	property that is the subject of an appeal under Chapter 42 on July
864		-	25 that is not in dispute; and
865		-	(B) the amount of taxes refunded by the taxing
866		-	unit in the preceding year for tax years before that year.
	666	+	rollback tax rate, as certified by the collector under Section
	667	+	26.04(b) [of this code].
	668	+	(10-a) "Inflation rate" means the amount, expressed in
	669	+	decimal form rounded to the nearest thousandth, computed by
	670	+	determining the percentage change in the consumer price index for
	671	+	the preceding calendar year as compared to the consumer price index
	672	+	for the calendar year preceding that calendar year.
867	673		(19) "Special taxing unit" means:
868	674		(A) a taxing unit, other than a school district,
869	675		for which the maintenance and operations tax rate proposed for the
870	676		current tax year is 2.5 cents or less per $100 of taxable value;
871	677		(B) a junior college district; or
872	678		(C) a hospital district.
873		-	SECTION 33. Section 26.012(9), Tax Code, is redesignated as
	679	+	SECTION 25. Section 26.012(9), Tax Code, is redesignated as
874	680		Section 26.012(18), Tax Code, and amended to read as follows:
875	681		(18) "No-new-revenue [(9) "Effective] maintenance
876	682		and operations rate" means a rate expressed in dollars per $100 of
877	683		taxable value and calculated according to the following formula:
878	684		NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE AND OPERATIONS
879	685		RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST
880	686		YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE -
881	687		NEW PROPERTY VALUE)
882		-	SECTION 34. Chapter 26, Tax Code, is amended by adding
	688	+	SECTION 26. Chapter 26, Tax Code, is amended by adding
883	689		Section 26.013 to read as follows:
884	690		Sec. 26.013. UNUSED INCREMENT RATE. (a) In this section:
885	691		(1) "Actual tax rate" means a taxing unit's actual tax
886	692		rate used to levy taxes in the applicable preceding tax year.
887		-	(2) "~~Voter-approval~~ tax rate" means a taxing unit's
888		-	~~voter-approval~~ tax rate in the applicable preceding tax year less
889		-	~~the unused~~ increment rate for that preceding tax year.
890		-	(3) "Year 1" means the ~~third~~ tax year preceding the
	693	+	(2) "Rollback tax rate" means a taxing unit's rollback
	694	+	tax rate in the applicable preceding tax year less the unused
	695	+	increment rate for that preceding tax year.
	696	+	(3) "Year 1" means the fifth tax year preceding the
891	697		current tax year.
892		-	(4) "Year 2" means the ~~second~~ tax year preceding the
	698	+	(4) "Year 2" means the fourth tax year preceding the
893	699		current tax year.
894		-	(5) "Year 3" means the tax year preceding the current
	700	+	(5) "Year 3" means the third tax year preceding the
	701	+	current tax year.
	702	+	(6) "Year 4" means the second tax year preceding the
	703	+	current tax year.
	704	+	(7) "Year 5" means the tax year preceding the current
895	705		tax year.
896	706		(b) In this chapter, "unused increment rate" means the
897	707		greater of:
898	708		(1) zero; or
899	709		(2) the rate expressed in dollars per $100 of taxable
900	710		value calculated according to the following formula:
901		-	UNUSED INCREMENT RATE = (YEAR 1 VOTER-APPROVAL TAX
902		-	RATE - YEAR 1 ACTUAL TAX RATE) + (YEAR 2 VOTER-APPROVAL
903		-	TAX RATE - YEAR 2 ACTUAL TAX RATE) + (YEAR 3
904		-	VOTER-APPROVAL TAX RATE - YEAR 3 ACTUAL TAX RATE)
	711	+	UNUSED INCREMENT RATE = (YEAR 1 ROLLBACK TAX RATE -
	712	+	YEAR 1 ACTUAL TAX RATE) + (YEAR 2 ROLLBACK TAX RATE -
	713	+	YEAR 2 ACTUAL TAX RATE) + (YEAR 3 ROLLBACK TAX RATE -
	714	+	YEAR 3 ACTUAL TAX RATE) + (YEAR 4 ROLLBACK TAX RATE -
	715	+	YEAR 4 ACTUAL TAX RATE) + (YEAR 5 ROLLBACK TAX RATE -
	716	+	YEAR 5 ACTUAL TAX RATE)
905	717		(c) Notwithstanding Subsection (b)(2), for each tax year
906	718		before the 2020 tax year, the difference between the taxing unit's
907		-	~~voter-approval~~ tax rate and actual tax rate is considered to be
908		-	~~zero. This~~ subsection expires December 31, ~~2022~~.
909		-	SECTION 35. The heading to Section 26.04, Tax Code, is
	719	+	rollback tax rate and actual tax rate is considered to be zero. This
	720	+	subsection expires December 31, 2024.
	721	+	SECTION 27. The heading to Section 26.04, Tax Code, is
910	722		amended to read as follows:
911	723		Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
912		-	NO-NEW-REVENUE [EFFECTIVE] AND VOTER-APPROVAL [ROLLBACK] TAX
913		-	RATES.
914		-	SECTION 36. Section 26.04, Tax Code, is amended by amending
	724	+	NO-NEW-REVENUE [EFFECTIVE] AND ROLLBACK TAX RATES.
	725	+	SECTION 28. Section 26.04, Tax Code, is amended by amending
915	726		Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and (j) and
916		-	adding Subsections (c-1), (c-2), (d-1), (d-2), (d-3), (e-2), ~~(e-3),~~
917		-	(e-4), (e-5), (h-1), and (h-2) to read as follows:
	727	+	adding Subsections (b-1), (c-1), (c-2), (d-1), (d-2), (d-3), (e-2),
	728	+	(e-3), (e-4), (e-5), (h-1), and (h-2) to read as follows:
918	729		(b) The assessor shall submit the appraisal roll for the
919	730		taxing unit showing the total appraised, assessed, and taxable
920	731		values of all property and the total taxable value of new property
921	732		to the governing body of the taxing unit by August 1 or as soon
922	733		thereafter as practicable. By August 1 or as soon thereafter as
923	734		practicable, the taxing unit's collector shall certify [an estimate
924	735		of] the anticipated collection rate as calculated under Subsections
925	736		(h), (h-1), and (h-2) for the current year to the governing body.
926	737		If the collector certified an anticipated collection rate in the
927	738		preceding year and the actual collection rate in that year exceeded
928	739		the anticipated rate, the collector shall also certify the amount
929	740		of debt taxes collected in excess of the anticipated amount in the
930	741		preceding year.
	742	+	(b-1) By August 1 or as soon thereafter as practicable, the
	743	+	comptroller shall determine the de minimis amount for the current
	744	+	tax year and publish that amount in the Texas Register. The de
	745	+	minimis amount for the 2020 tax year is $500,000. For each
	746	+	succeeding tax year, the de minimis amount is equal to the de
	747	+	minimis amount for the preceding tax year as adjusted by the
	748	+	comptroller to reflect the inflation rate.
931	749		(c) After the assessor for the taxing unit submits the
932	750		appraisal roll for the taxing unit to the governing body of the
933		-	taxing unit as required by Subsection (b), an [An] officer or
934		-	employee designated by the governing body shall calculate the
935		-	no-new-revenue [effective] tax rate and the voter-approval
936		-	[rollback] tax rate for the taxing unit, where:
	751	+	taxing unit as required by Subsection (b) and the comptroller
	752	+	publishes the de minimis amount for the current tax year as required
	753	+	by Subsection (b-1), an [An] officer or employee designated by the
	754	+	governing body shall calculate the no-new-revenue [effective] tax
	755	+	rate and the rollback tax rate for the taxing unit, where:
937	756		(1) "No-new-revenue [Effective] tax rate" means a rate
938	757		expressed in dollars per $100 of taxable value calculated according
939	758		to the following formula:
940	759		NO-NEW-REVENUE [EFFECTIVE] TAX RATE = (LAST YEAR'S
941	760		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE -
942	761		NEW PROPERTY VALUE)
943	762		; and
944		-	(2) "~~Voter-approval [~~Rollback] tax rate" means a rate
945		-	~~expressed in~~ dollars per $100 of taxable value calculated according
946		-	~~to the~~ following applicable formula:
	763	+	(2) "Rollback tax rate" means a rate expressed in
	764	+	dollars per $100 of taxable value calculated according to the
	765	+	following applicable formula:
947	766		(A) for a special taxing unit:
948		-	~~VOTER-APPROVAL [~~ROLLBACK] TAX RATE = (NO-NEW-REVENUE
949		-	~~[EFFECTIVE]~~ MAINTENANCE AND OPERATIONS RATE x 1.08) +
950		-	~~CURRENT DEBT~~ RATE
	767	+	ROLLBACK TAX RATE = (NO-NEW-REVENUE [EFFECTIVE]
	768	+	MAINTENANCE AND OPERATIONS RATE x 1.08) + CURRENT DEBT
	769	+	RATE
951	770		; or
952	771		(B) for a taxing unit other than a special taxing
953	772		unit:
954		-	~~VOTER-APPROVAL~~ TAX RATE = (NO-NEW-REVENUE MAINTENANCE
955		-	~~AND~~ OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +
956		-	~~UNUSED~~ INCREMENT RATE)
	773	+	ROLLBACK TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND
	774	+	OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED
	775	+	INCREMENT RATE)
957	776		(c-1) Notwithstanding any other provision of this section,
958	777		the governing body of a taxing unit other than a special taxing unit
959	778		may direct the designated officer or employee to calculate the
960		-	voter-approval tax rate of the taxing unit in the manner provided
961		-	for a special taxing unit if any part of the taxing unit is located
962		-	in an area declared a disaster area during the current tax year by
963		-	the governor or by the president of the United States. The
964		-	designated officer or employee shall continue calculating the
965		-	voter-approval tax rate in the manner provided by this subsection
966		-	until the earlier of:
967		-	(1) the second tax year in which the total taxable
968		-	value of property taxable by the taxing unit as shown on the
969		-	appraisal roll for the taxing unit submitted by the assessor for the
970		-	taxing unit to the governing body exceeds the total taxable value of
	779	+	rollback tax rate of the taxing unit in the manner provided for a
	780	+	special taxing unit if any part of the taxing unit is located in an
	781	+	area declared a disaster area during the current tax year by the
	782	+	governor or by the president of the United States. The designated
	783	+	officer or employee shall continue calculating the rollback tax
	784	+	rate in the manner provided by this subsection until the earlier of:
	785	+	(1) the first tax year in which the total taxable value
	786	+	of property taxable by the taxing unit as shown on the appraisal
	787	+	roll for the taxing unit submitted by the assessor for the taxing
	788	+	unit to the governing body exceeds the total taxable value of
971	789		property taxable by the taxing unit on January 1 of the tax year in
972	790		which the disaster occurred; or
973		-	(2) the ~~third~~ tax year after the tax year in which the
	791	+	(2) the fifth tax year after the tax year in which the
974	792		disaster occurred.
975	793		(c-2) Notwithstanding any other provision of this section,
976	794		if the assessor for a taxing unit receives a certified estimate of
977	795		the taxable value of property in the taxing unit under Section
978	796		26.01(a-1), the officer or employee designated by the governing
979	797		body of the taxing unit shall calculate the no-new-revenue tax rate
980		-	and ~~voter-approval~~ tax rate using the certified estimate of taxable
	798	+	and rollback tax rate using the certified estimate of taxable
981	799		value.
982	800		(d) The no-new-revenue [effective] tax rate for a county is
983	801		the sum of the no-new-revenue [effective] tax rates calculated for
984		-	each type of tax the county levies and the voter-approval
985		-	[rollback] tax rate for a county is the sum of the voter-approval
986		-	[rollback] tax rates calculated for each type of tax the county
987		-	levies.
	802	+	each type of tax the county levies and the rollback tax rate for a
	803	+	county is the sum of the rollback tax rates calculated for each type
	804	+	of tax the county levies.
988	805		(d-1) The designated officer or employee shall use the tax
989	806		rate calculation forms prescribed by the comptroller under Section
990		-	5.07 in calculating the no-new-revenue tax rate and the
991		-	~~voter-approval~~ tax rate.
	807	+	5.07 in calculating the no-new-revenue tax rate and the rollback
	808	+	tax rate.
992	809		(d-2) The designated officer or employee may not submit the
993		-	no-new-revenue tax rate and the ~~voter-approval~~ tax rate to the
994		-	~~governing~~ body of the taxing unit and the taxing unit may not adopt
995		-	~~a tax rate~~ until the designated officer or employee certifies on the
996		-	~~tax rate~~ calculation forms that the designated officer or employee
997		-	~~has~~ accurately calculated the tax rates and has used values that are
998		-	~~the~~ same as the values shown in the taxing unit's certified
999		-	~~appraisal~~ roll in performing the calculations.
	810	+	no-new-revenue tax rate and the rollback tax rate to the governing
	811	+	body of the taxing unit and the taxing unit may not adopt a tax rate
	812	+	until the designated officer or employee certifies on the tax rate
	813	+	calculation forms that the designated officer or employee has
	814	+	accurately calculated the tax rates and has used values that are the
	815	+	same as the values shown in the taxing unit's certified appraisal
	816	+	roll in performing the calculations.
1000	817		(d-3) As soon as practicable after the designated officer or
1001		-	employee calculates the no-new-revenue tax rate and the
1002		-	voter-approval tax rate of the taxing unit, the designated officer
1003		-	or employee shall submit the tax rate calculation forms used in
1004		-	calculating the rates to the county assessor-collector for each
1005		-	county in which all or part of the territory of the taxing unit is
1006		-	located.
	818	+	employee calculates the no-new-revenue tax rate and the rollback
	819	+	tax rate of the taxing unit, the designated officer or employee
	820	+	shall submit the tax rate calculation forms used in calculating the
	821	+	rates to the county assessor-collector for each county in which all
	822	+	or part of the territory of the taxing unit is located.
1007	823		(e) By August 7 or as soon thereafter as practicable, the
1008		-	designated officer or employee shall submit the rates to the
1009		-	governing body. The designated officer or employee [He] shall post
1010		-	prominently on the home page of the taxing unit's Internet website
1011		-	[deliver by mail to each property owner in the unit or publish in a
1012		-	newspaper] in the form prescribed by the comptroller:
1013		-	(1) the no-new-revenue [effective] tax rate, the
1014		-	voter-approval [rollback] tax rate, and an explanation of how they
1015		-	were calculated;
1016		-	(2) the estimated amount of interest and sinking fund
	824	+	designated officer or employee shall:
	825	+	(1) submit the rates to the governing body;
	826	+	(2) [. He shall deliver by mail to each property owner
	827	+	in the unit or] publish the rates in a newspaper having general
	828	+	circulation in the county in which the taxing unit is located or
	829	+	primarily located;
	830	+	(3) post the rates in a prominent location on the
	831	+	taxing unit's Internet website; and
	832	+	(4) prepare and submit to the governing body [in the
	833	+	form prescribed by the comptroller:
	834	+	[(1) the effective tax rate, the rollback tax rate,
	835	+	and an explanation of how they were calculated;
	836	+	[(2) the estimated amount of interest and sinking fund
1017	837		balances and the estimated amount of maintenance and operation or
1018	838		general fund balances remaining at the end of the current fiscal
1019	839		year that are not encumbered with or by corresponding existing debt
1020		-	obligation; ~~and~~
1021		-	(3) a schedule of the taxing unit's debt obligations
	840	+	obligation;
	841	+	[(3)] a schedule of the taxing unit's debt obligations
1022	842		showing:
1023	843		(A) the amount of principal and interest that
1024	844		will be paid to service the taxing unit's debts in the next year
1025	845		from property tax revenue, including payments of lawfully incurred
1026	846		contractual obligations providing security for the payment of the
1027	847		principal of and interest on bonds and other evidences of
1028	848		indebtedness issued on behalf of the taxing unit by another
1029	849		political subdivision and, if the taxing unit is created under
1030	850		Section 52, Article III, or Section 59, Article XVI, Texas
1031	851		Constitution, payments on debts that the taxing unit anticipates to
1032	852		incur in the next calendar year;
1033	853		(B) the amount by which taxes imposed for debt
1034	854		are to be increased because of the taxing unit's anticipated
1035	855		collection rate; and
1036	856		(C) the total of the amounts listed in Paragraphs
1037	857		(A)-(B), less any amount collected in excess of the previous year's
1038	858		anticipated collections certified as provided in Subsection (b)[;
1039	859		[(4) the amount of additional sales and use tax
1040	860		revenue anticipated in calculations under Section 26.041;
1041	861		[(5) a statement that the adoption of a tax rate equal
1042	862		to the effective tax rate would result in an increase or decrease,
1043	863		as applicable, in the amount of taxes imposed by the unit as
1044	864		compared to last year's levy, and the amount of the increase or
1045	865		decrease;
1046	866		[(6) in the year that a taxing unit calculates an
1047	867		adjustment under Subsection (i) or (j), a schedule that includes
1048	868		the following elements:
1049	869		[(A) the name of the unit discontinuing the
1050	870		department, function, or activity;
1051	871		[(B) the amount of property tax revenue spent by
1052	872		the unit listed under Paragraph (A) to operate the discontinued
1053	873		department, function, or activity in the 12 months preceding the
1054	874		month in which the calculations required by this chapter are made;
1055	875		and
1056	876		[(C) the name of the unit that operates a
1057	877		distinct department, function, or activity in all or a majority of
1058	878		the territory of a taxing unit that has discontinued operating the
1059	879		distinct department, function, or activity; and
1060	880		[(7) in the year following the year in which a taxing
1061	881		unit raised its rollback rate as required by Subsection (j), a
1062	882		schedule that includes the following elements:
1063	883		[(A) the amount of property tax revenue spent by
1064	884		the unit to operate the department, function, or activity for which
1065	885		the taxing unit raised the rollback rate as required by Subsection
1066	886		(j) for the 12 months preceding the month in which the calculations
1067	887		required by this chapter are made; and
1068	888		[(B) the amount published by the unit in the
1069	889		preceding tax year under Subdivision (6)(B)].
1070	890		(e-1) The tax rate certification requirements imposed by
1071	891		Subsection (d-2) and the notice requirements imposed by Subsections
1072		-	(e)(1)-(3) [(e)(1)-(6)] do not apply to a school district.
	892	+	(e)(2)-(4) [(e)(1)-(6)] do not apply to a school district.
1073	893		(e-2) By August 7 or as soon thereafter as practicable, the
1074	894		chief appraiser of each appraisal district shall deliver by regular
1075	895		mail or e-mail to each owner of property located in the appraisal
1076	896		district a notice that the estimated amount of taxes to be imposed
1077	897		on the owner's property by each taxing unit in which the property is
1078	898		located may be found in the property tax database maintained by the
1079	899		appraisal district under Section 26.17. The notice must include:
1080	900		(1) a statement directing the property owner to an
1081	901		Internet website from which the owner may access information
1082	902		related to the actions taken or proposed to be taken by each taxing
1083	903		unit in which the property is located that may affect the taxes
1084	904		imposed on the owner's property;
1085	905		(2) a statement that the property owner may request
1086	906		from the county assessor-collector for the county in which the
1087	907		property is located or, if the county assessor-collector does not
1088	908		assess taxes for the county, the person who assesses taxes for the
1089	909		county under Section 6.24(b), contact information for the assessor
1090	910		for each taxing unit in which the property is located, who must
1091	911		provide the information described by this subsection to the owner
1092	912		on request; and
1093	913		(3) the name, address, and telephone number of the
1094	914		county assessor-collector for the county in which the property is
1095	915		located or, if the county assessor-collector does not assess taxes
1096	916		for the county, the person who assesses taxes for the county under
1097	917		Section 6.24(b).
1098	918		(e-3) The statement described by Subsection (e-2)(1) must
1099	919		include a heading that is in bold, capital letters in type larger
1100	920		than that used in the other provisions of the notice.
1101	921		(e-4) The comptroller:
1102	922		(1) with the advice of the property tax administration
1103	923		advisory board, shall adopt rules prescribing the form of the
1104	924		notice required by Subsection (e-2); and
1105	925		(2) may adopt rules regarding the format and delivery
1106	926		of the notice.
1107	927		(e-5) The governing body of a taxing unit shall include as
1108	928		an appendix to the taxing unit's budget for a fiscal year the tax
1109	929		rate calculation forms used by the designated officer or employee
1110	930		of the taxing unit to calculate the no-new-revenue tax rate and the
1111		-	~~voter-approval~~ tax rate of the taxing unit for the tax year in which
1112		-	~~the~~ fiscal year begins.
	931	+	rollback tax rate of the taxing unit for the tax year in which the
	932	+	fiscal year begins.
1113	933		(f) If as a result of consolidation of taxing units a taxing
1114	934		unit includes territory that was in two or more taxing units in the
1115	935		preceding year, the amount of taxes imposed in each in the preceding
1116	936		year is combined for purposes of calculating the no-new-revenue
1117		-	[effective] and voter-approval [rollback] tax rates under this
1118		-	section.
	937	+	[effective] and rollback tax rates under this section.
1119	938		(g) A person who owns taxable property is entitled to an
1120	939		injunction prohibiting the taxing unit in which the property is
1121	940		taxable from adopting a tax rate if the assessor or designated
1122	941		officer or employee of the taxing unit, the chief appraiser of the
1123	942		applicable appraisal district, or the taxing unit, as applicable,
1124	943		has not complied with the computation, [or] publication, or posting
1125	944		requirements of this section or Section 26.16, 26.17, or 26.18 [and
1126	945		the failure to comply was not in good faith]. It is a defense in an
1127	946		action for an injunction under this subsection that the failure to
1128	947		comply was in good faith.
1129	948		(h-1) Notwithstanding Subsection (h), if the anticipated
1130	949		collection rate of a taxing unit as calculated under that
1131	950		subsection is lower than the lowest actual collection rate of the
1132	951		taxing unit for any of the preceding three years, the anticipated
1133	952		collection rate of the taxing unit for purposes of this section is
1134	953		equal to the lowest actual collection rate of the taxing unit for
1135	954		any of the preceding three years.
1136	955		(h-2) The anticipated collection rate of a taxing unit for
1137	956		purposes of this section is the rate calculated under Subsection
1138	957		(h) as modified by Subsection (h-1), if applicable, regardless of
1139	958		whether that rate exceeds 100 percent.
1140	959		(i) This subsection applies to a taxing unit that has agreed
1141	960		by written contract to transfer a distinct department, function, or
1142	961		activity to another taxing unit and discontinues operating that
1143	962		distinct department, function, or activity if the operation of that
1144	963		department, function, or activity in all or a majority of the
1145	964		territory of the taxing unit is continued by another existing
1146		-	taxing unit or by a new taxing unit. The voter-approval [rollback]
1147		-	tax rate of a taxing unit to which this subsection applies in the
1148		-	first tax year in which a budget is adopted that does not allocate
1149		-	revenue to the discontinued department, function, or activity is
1150		-	calculated as otherwise provided by this section, except that last
1151		-	year's levy used to calculate the no-new-revenue [effective]
1152		-	maintenance and operations rate of the taxing unit is reduced by the
1153		-	amount of maintenance and operations tax revenue spent by the
1154		-	taxing unit to operate the department, function, or activity for
1155		-	the 12 months preceding the month in which the calculations
1156		-	required by this chapter are made and in which the taxing unit
1157		-	operated the discontinued department, function, or activity. If
1158		-	the taxing unit did not operate that department, function, or
1159		-	activity for the full 12 months preceding the month in which the
1160		-	calculations required by this chapter are made, the taxing unit
1161		-	shall reduce last year's levy used for calculating the
1162		-	no-new-revenue [effective] maintenance and operations rate of the
1163		-	taxing unit by the amount of the revenue spent in the last full
1164		-	fiscal year in which the taxing unit operated the discontinued
1165		-	department, function, or activity.
	965	+	taxing unit or by a new taxing unit. The rollback tax rate of a
	966	+	taxing unit to which this subsection applies in the first tax year
	967	+	in which a budget is adopted that does not allocate revenue to the
	968	+	discontinued department, function, or activity is calculated as
	969	+	otherwise provided by this section, except that last year's levy
	970	+	used to calculate the no-new-revenue [effective] maintenance and
	971	+	operations rate of the taxing unit is reduced by the amount of
	972	+	maintenance and operations tax revenue spent by the taxing unit to
	973	+	operate the department, function, or activity for the 12 months
	974	+	preceding the month in which the calculations required by this
	975	+	chapter are made and in which the taxing unit operated the
	976	+	discontinued department, function, or activity. If the taxing unit
	977	+	did not operate that department, function, or activity for the full
	978	+	12 months preceding the month in which the calculations required by
	979	+	this chapter are made, the taxing unit shall reduce last year's levy
	980	+	used for calculating the no-new-revenue [effective] maintenance
	981	+	and operations rate of the taxing unit by the amount of the revenue
	982	+	spent in the last full fiscal year in which the taxing unit operated
	983	+	the discontinued department, function, or activity.
1166	984		(j) This subsection applies to a taxing unit that had agreed
1167	985		by written contract to accept the transfer of a distinct
1168	986		department, function, or activity from another taxing unit and
1169	987		operates a distinct department, function, or activity if the
1170	988		operation of a substantially similar department, function, or
1171	989		activity in all or a majority of the territory of the taxing unit
1172	990		has been discontinued by another taxing unit, including a dissolved
1173		-	taxing unit. The ~~voter-approval [~~rollback] tax rate of a taxing
1174		-	~~unit to which this~~ subsection applies in the first tax year after
1175		-	~~the other taxing unit~~ discontinued the substantially similar
1176		-	~~department, function, or~~ activity in which a budget is adopted that
1177		-	~~allocates revenue to the~~ department, function, or activity is
1178		-	~~calculated as otherwise~~ provided by this section, except that last
1179		-	~~year's levy used to~~ calculate the no-new-revenue [effective]
1180		-	~~maintenance and~~ operations rate of the taxing unit is increased by
1181		-	~~the amount of~~ maintenance and operations tax revenue spent by the
1182		-	~~taxing unit~~ that discontinued operating the substantially similar
1183		-	~~department,~~ function, or activity to operate that department,
1184		-	~~function, or~~ activity for the 12 months preceding the month in which
1185		-	~~the~~ calculations required by this chapter are made and in which the
	991	+	taxing unit. The rollback tax rate of a taxing unit to which this
	992	+	subsection applies in the first tax year after the other taxing unit
	993	+	discontinued the substantially similar department, function, or
	994	+	activity in which a budget is adopted that allocates revenue to the
	995	+	department, function, or activity is calculated as otherwise
	996	+	provided by this section, except that last year's levy used to
	997	+	calculate the no-new-revenue [effective] maintenance and
	998	+	operations rate of the taxing unit is increased by the amount of
	999	+	maintenance and operations tax revenue spent by the taxing unit
	1000	+	that discontinued operating the substantially similar department,
	1001	+	function, or activity to operate that department, function, or
	1002	+	activity for the 12 months preceding the month in which the
	1003	+	calculations required by this chapter are made and in which the
1186	1004		taxing unit operated the discontinued department, function, or
1187	1005		activity. If the taxing unit did not operate the discontinued
1188	1006		department, function, or activity for the full 12 months preceding
1189	1007		the month in which the calculations required by this chapter are
1190	1008		made, the taxing unit may increase last year's levy used to
1191	1009		calculate the no-new-revenue [effective] maintenance and
1192	1010		operations rate by an amount not to exceed the amount of property
1193	1011		tax revenue spent by the discontinuing taxing unit to operate the
1194	1012		discontinued department, function, or activity in the last full
1195	1013		fiscal year in which the discontinuing taxing unit operated the
1196	1014		department, function, or activity.
1197		-	SECTION 37. Section 26.041, Tax Code, is amended by
	1015	+	SECTION 29. Section 26.041, Tax Code, is amended by
1198	1016		amending Subsections (a), (b), (c), (e), (g), and (h) and adding
1199	1017		Subsection (c-1) to read as follows:
1200	1018		(a) In the first year in which an additional sales and use
1201	1019		tax is required to be collected, the no-new-revenue [effective] tax
1202		-	rate and ~~voter-approval [~~rollback] tax rate for the taxing unit are
1203		-	~~calculated~~ according to the following formulas:
	1020	+	rate and rollback tax rate for the taxing unit are calculated
	1021	+	according to the following formulas:
1204	1022		NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
1205	1023		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
1206	1024		PROPERTY VALUE)] - SALES TAX GAIN RATE
1207	1025		and
1208		-	~~VOTER-APPROVAL~~ TAX ~~[ROLLBACK]~~ RATE FOR SPECIAL TAXING
1209		-	~~UNIT =~~ (NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE AND
	1026	+	ROLLBACK TAX RATE FOR SPECIAL TAXING UNIT =
	1027	+	(NO-NEW-REVENUE [EFFECTIVE] MAINTENANCE AND
1210	1028		OPERATIONS RATE x 1.08) + (CURRENT DEBT RATE - SALES
1211	1029		TAX GAIN RATE)
1212	1030		or
1213		-	~~VOTER-APPROVAL~~ TAX RATE FOR TAXING UNIT OTHER THAN
1214		-	~~SPECIAL~~ TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND
	1031	+	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
	1032	+	TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE AND
1215	1033		OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED
1216	1034		INCREMENT RATE - SALES TAX GAIN RATE)
1217	1035		where "sales tax gain rate" means a number expressed in dollars per
1218	1036		$100 of taxable value, calculated by dividing the revenue that will
1219	1037		be generated by the additional sales and use tax in the following
1220	1038		year as calculated under Subsection (d) [of this section] by the
1221	1039		current total value.
1222	1040		(b) Except as provided by Subsections (a) and (c) [of this
1223	1041		section], in a year in which a taxing unit imposes an additional
1224		-	sales and use tax, the voter-approval [rollback] tax rate for the
1225		-	taxing unit is calculated according to the following formula,
1226		-	regardless of whether the taxing unit levied a property tax in the
1227		-	preceding year:
1228		-	VOTER-APPROVAL TAX [ROLLBACK] RATE FOR SPECIAL TAXING
1229		-	UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
1230		-	EXPENSE x 1.08) / ([TOTAL] CURRENT TOTAL VALUE - NEW
1231		-	PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
1232		-	REVENUE RATE)
	1042	+	sales and use tax, the rollback tax rate for the taxing unit is
	1043	+	calculated according to the following formula, regardless of
	1044	+	whether the taxing unit levied a property tax in the preceding year:
	1045	+	ROLLBACK TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
	1046	+	YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) /
	1047	+	([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
	1048	+	(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
1233	1049		or
1234		-	~~VOTER-APPROVAL~~ TAX RATE FOR TAXING UNIT OTHER THAN
1235		-	~~SPECIAL~~ TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND
1236		-	~~OPERATIONS~~ EXPENSE x 1.035) / (CURRENT TOTAL VALUE -
1237		-	~~NEW PROPERTY~~ VALUE)] + (CURRENT DEBT RATE + UNUSED
1238		-	~~INCREMENT RATE -~~ SALES TAX REVENUE RATE)
	1050	+	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
	1051	+	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
	1052	+	EXPENSE x 1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY
	1053	+	VALUE)] + (CURRENT DEBT RATE + UNUSED INCREMENT RATE -
	1054	+	SALES TAX REVENUE RATE)
1239	1055		where "last year's maintenance and operations expense" means the
1240	1056		amount spent for maintenance and operations from property tax and
1241	1057		additional sales and use tax revenues in the preceding year, and
1242	1058		"sales tax revenue rate" means a number expressed in dollars per
1243	1059		$100 of taxable value, calculated by dividing the revenue that will
1244	1060		be generated by the additional sales and use tax in the current year
1245	1061		as calculated under Subsection (d) [of this section] by the current
1246	1062		total value.
1247	1063		(c) In a year in which a taxing unit that has been imposing
1248	1064		an additional sales and use tax ceases to impose an additional sales
1249		-	and use tax, the no-new-revenue [effective] tax rate and
1250		-	~~voter-approval [rollback]~~ tax rate for the taxing unit are
1251		-	~~calculated according to the~~ following formulas:
	1065	+	and use tax, the no-new-revenue [effective] tax rate and rollback
	1066	+	tax rate for the taxing unit are calculated according to the
	1067	+	following formulas:
1252	1068		NO-NEW-REVENUE [EFFECTIVE] TAX RATE = [(LAST YEAR'S
1253	1069		LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW
1254	1070		PROPERTY VALUE)] + SALES TAX LOSS RATE
1255	1071		and
1256		-	~~VOTER-APPROVAL [~~ROLLBACK] TAX RATE FOR SPECIAL TAXING
1257		-	~~UNIT = [(LAST~~ YEAR'S MAINTENANCE AND OPERATIONS
1258		-	~~EXPENSE x 1.08) /~~ ([TOTAL] CURRENT TOTAL VALUE - NEW
1259		-	~~PROPERTY VALUE)] +~~ CURRENT DEBT RATE
	1072	+	ROLLBACK TAX RATE FOR SPECIAL TAXING UNIT = [(LAST
	1073	+	YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) /
	1074	+	([TOTAL] CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +
	1075	+	CURRENT DEBT RATE
1260	1076		or
1261		-	VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER THAN
1262		-	SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND
1263		-	OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE -
1264		-	NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED
1265		-	INCREMENT RATE)
	1077	+	ROLLBACK TAX RATE FOR TAXING UNIT OTHER THAN SPECIAL
	1078	+	TAXING UNIT = [(LAST YEAR'S MAINTENANCE AND OPERATIONS
	1079	+	EXPENSE x 1.035) / (CURRENT TOTAL VALUE - NEW PROPERTY
	1080	+	VALUE)] + (CURRENT DEBT RATE + UNUSED INCREMENT RATE)
1266	1081		where "sales tax loss rate" means a number expressed in dollars per
1267	1082		$100 of taxable value, calculated by dividing the amount of sales
1268	1083		and use tax revenue generated in the last four quarters for which
1269	1084		the information is available by the current total value and "last
1270	1085		year's maintenance and operations expense" means the amount spent
1271	1086		for maintenance and operations from property tax and additional
1272	1087		sales and use tax revenues in the preceding year.
1273	1088		(c-1) Notwithstanding any other provision of this section,
1274	1089		the governing body of a taxing unit other than a special taxing unit
1275	1090		may direct the designated officer or employee to calculate the
1276		-	voter-approval tax rate of the taxing unit in the manner provided
1277		-	for a special taxing unit if any part of the taxing unit is located
1278		-	in an area declared a disaster area during the current tax year by
1279		-	the governor or by the president of the United States. The
1280		-	designated officer or employee shall continue calculating the
1281		-	voter-approval tax rate in the manner provided by this subsection
1282		-	until the earlier of:
1283		-	(1) the second tax year in which the total taxable
1284		-	value of property taxable by the taxing unit as shown on the
1285		-	appraisal roll for the taxing unit submitted by the assessor for the
1286		-	taxing unit to the governing body exceeds the total taxable value of
	1091	+	rollback tax rate of the taxing unit in the manner provided for a
	1092	+	special taxing unit if any part of the taxing unit is located in an
	1093	+	area declared a disaster area during the current tax year by the
	1094	+	governor or by the president of the United States. The designated
	1095	+	officer or employee shall continue calculating the rollback tax
	1096	+	rate in the manner provided by this subsection until the earlier of:
	1097	+	(1) the first tax year in which the total taxable value
	1098	+	of property taxable by the taxing unit as shown on the appraisal
	1099	+	roll for the taxing unit submitted by the assessor for the taxing
	1100	+	unit to the governing body exceeds the total taxable value of
1287	1101		property taxable by the taxing unit on January 1 of the tax year in
1288	1102		which the disaster occurred; or
1289		-	(2) the ~~third~~ tax year after the tax year in which the
	1103	+	(2) the fifth tax year after the tax year in which the
1290	1104		disaster occurred.
1291	1105		(e) If a city that imposes an additional sales and use tax
1292	1106		receives payments under the terms of a contract executed before
1293	1107		January 1, 1986, in which the city agrees not to annex certain
1294	1108		property or a certain area and the owners or lessees of the property
1295	1109		or of property in the area agree to pay at least annually to the city
1296	1110		an amount determined by reference to all or a percentage of the
1297	1111		property tax rate of the city and all or a part of the value of the
1298	1112		property subject to the agreement or included in the area subject to
1299	1113		the agreement, the governing body, by order adopted by a majority
1300	1114		vote of the governing body, may direct the designated officer or
1301		-	employee to add to the no-new-revenue [effective] and
1302		-	~~voter-approval [rollback] tax~~ rates the amount that, when applied
1303		-	~~to the total taxable value~~ submitted to the governing body, would
1304		-	~~produce an amount of taxes~~ equal to the difference between the total
1305		-	~~amount of payments for the~~ tax year under contracts described by
1306		-	~~this subsection under the voter-approval [~~rollback] tax rate
1307		-	~~calculated under this section and the total~~ amount of payments for
1308		-	~~the tax year that would have been obligated~~ to the city if the city
1309		-	~~had not adopted an additional sales and use~~ tax.
	1115	+	employee to add to the no-new-revenue [effective] and rollback tax
	1116	+	rates the amount that, when applied to the total taxable value
	1117	+	submitted to the governing body, would produce an amount of taxes
	1118	+	equal to the difference between the total amount of payments for the
	1119	+	tax year under contracts described by this subsection under the
	1120	+	rollback tax rate calculated under this section and the total
	1121	+	amount of payments for the tax year that would have been obligated
	1122	+	to the city if the city had not adopted an additional sales and use
	1123	+	tax.
1310	1124		(g) If the rate of the additional sales and use tax is
1311	1125		increased, the designated officer or employee shall make two
1312	1126		projections, in the manner provided by Subsection (d) [of this
1313	1127		section], of the revenue generated by the additional sales and use
1314	1128		tax in the following year. The first projection must take into
1315	1129		account the increase and the second projection must not take into
1316	1130		account the increase. The designated officer or employee shall
1317	1131		then subtract the amount of the result of the second projection from
1318	1132		the amount of the result of the first projection to determine the
1319	1133		revenue generated as a result of the increase in the additional
1320	1134		sales and use tax. In the first year in which an additional sales
1321	1135		and use tax is increased, the no-new-revenue [effective] tax rate
1322	1136		for the taxing unit is the no-new-revenue [effective] tax rate
1323	1137		before the increase minus a number the numerator of which is the
1324	1138		revenue generated as a result of the increase in the additional
1325	1139		sales and use tax, as determined under this subsection, and the
1326	1140		denominator of which is the current total value minus the new
1327	1141		property value.
1328	1142		(h) If the rate of the additional sales and use tax is
1329	1143		decreased, the designated officer or employee shall make two
1330	1144		projections, in the manner provided by Subsection (d) [of this
1331	1145		section], of the revenue generated by the additional sales and use
1332	1146		tax in the following year. The first projection must take into
1333	1147		account the decrease and the second projection must not take into
1334	1148		account the decrease. The designated officer or employee shall
1335	1149		then subtract the amount of the result of the first projection from
1336	1150		the amount of the result of the second projection to determine the
1337	1151		revenue lost as a result of the decrease in the additional sales and
1338	1152		use tax. In the first year in which an additional sales and use tax
1339	1153		is decreased, the no-new-revenue [effective] tax rate for the
1340	1154		taxing unit is the no-new-revenue [effective] tax rate before the
1341	1155		decrease plus a number the numerator of which is the revenue lost as
1342	1156		a result of the decrease in the additional sales and use tax, as
1343	1157		determined under this subsection, and the denominator of which is
1344	1158		the current total value minus the new property value.
1345		-	SECTION 38. The heading to Section 26.043, Tax Code, is
	1159	+	SECTION 30. The heading to Section 26.043, Tax Code, is
1346	1160		amended to read as follows:
1347		-	Sec. 26.043. ~~VOTER-APPROVAL~~ AND NO-NEW-REVENUE [EFFECTIVE]
1348		-	~~TAX~~ RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
1349		-	SECTION 39. Sections 26.043(a) and (b), Tax Code, are
	1161	+	Sec. 26.043. ROLLBACK AND NO-NEW-REVENUE [EFFECTIVE] TAX
	1162	+	RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX.
	1163	+	SECTION 31. Sections 26.043(a) and (b), Tax Code, are
1350	1164		amended to read as follows:
1351	1165		(a) In the tax year in which a city has set an election on
1352	1166		the question of whether to impose a local sales and use tax under
1353	1167		Subchapter H, Chapter 453, Transportation Code, the officer or
1354	1168		employee designated to make the calculations provided by Section
1355	1169		26.04 may not make those calculations until the outcome of the
1356	1170		election is determined. If the election is determined in favor of
1357	1171		the imposition of the tax, the designated officer or employee
1358		-	[representative] shall subtract from the city's ~~voter-approval~~
1359		-	~~[rollback] and~~ no-new-revenue [effective] tax rates the amount
1360		-	~~that, if applied to~~ the city's current total value, would impose an
1361		-	~~amount equal to the~~ amount of property taxes budgeted in the current
1362		-	~~tax year to pay for~~ expenses related to mass transit services.
	1172	+	[representative] shall subtract from the city's rollback and
	1173	+	no-new-revenue [effective] tax rates the amount that, if applied to
	1174	+	the city's current total value, would impose an amount equal to the
	1175	+	amount of property taxes budgeted in the current tax year to pay for
	1176	+	expenses related to mass transit services.
1363	1177		(b) In a tax year to which this section applies, a reference
1364	1178		in this chapter to the city's no-new-revenue [effective] or
1365		-	~~voter-approval [~~rollback] tax rate refers to that rate as adjusted
1366		-	~~under this~~ section.
1367		-	SECTION 40. The heading to Section 26.044, Tax Code, is
	1179	+	rollback tax rate refers to that rate as adjusted under this
	1180	+	section.
	1181	+	SECTION 32. The heading to Section 26.044, Tax Code, is
1368	1182		amended to read as follows:
1369	1183		Sec. 26.044. NO-NEW-REVENUE [EFFECTIVE] TAX RATE TO PAY FOR
1370	1184		STATE CRIMINAL JUSTICE MANDATE.
1371		-	SECTION 41. Sections 26.044(a), (b), and (c), Tax Code, are
	1185	+	SECTION 33. Sections 26.044(a), (b), and (c), Tax Code, are
1372	1186		amended to read as follows:
1373	1187		(a) The first time that a county adopts a tax rate after
1374	1188		September 1, 1991, in which the state criminal justice mandate
1375	1189		applies to the county, the no-new-revenue [effective] maintenance
1376	1190		and operation rate for the county is increased by the rate
1377	1191		calculated according to the following formula:
1378	1192		(State Criminal Justice Mandate) / (Current Total
1379	1193		Value - New Property Value)
1380	1194		(b) In the second and subsequent years that a county adopts
1381	1195		a tax rate, if the amount spent by the county for the state criminal
1382	1196		justice mandate increased over the previous year, the
1383	1197		no-new-revenue [effective] maintenance and operation rate for the
1384	1198		county is increased by the rate calculated according to the
1385	1199		following formula:
1386	1200		(This Year's State Criminal Justice Mandate - Previous
1387	1201		Year's State Criminal Justice Mandate) / (Current
1388	1202		Total Value - New Property Value)
1389	1203		(c) The county shall include a notice of the increase in the
1390	1204		no-new-revenue [effective] maintenance and operation rate provided
1391	1205		by this section, including a description and amount of the state
1392	1206		criminal justice mandate, in the information published under
1393	1207		Section 26.04(e) and, as applicable, in the notice prescribed by
1394	1208		Section 26.06 or 26.061 [26.06(b) of this code].
1395		-	SECTION 42. Sections 26.0441(a), (b), and (c), Tax Code,
	1209	+	SECTION 34. Sections 26.0441(a), (b), and (c), Tax Code,
1396	1210		are amended to read as follows:
1397	1211		(a) In the first tax year in which a taxing unit adopts a tax
1398	1212		rate after January 1, 2000, and in which the enhanced minimum
1399	1213		eligibility standards for indigent health care established under
1400	1214		Section 61.006, Health and Safety Code, apply to the taxing unit,
1401	1215		the no-new-revenue [effective] maintenance and operations rate for
1402	1216		the taxing unit is increased by the rate computed according to the
1403	1217		following formula:
1404	1218		Amount of Increase = Enhanced Indigent Health Care
1405	1219		Expenditures / (Current Total Value - New Property
1406	1220		Value)
1407	1221		(b) In each subsequent tax year, if the taxing unit's
1408	1222		enhanced indigent health care expenses exceed the amount of those
1409	1223		expenses for the preceding year, the no-new-revenue [effective]
1410	1224		maintenance and operations rate for the taxing unit is increased by
1411	1225		the rate computed according to the following formula:
1412	1226		Amount of Increase = (Current Tax Year's Enhanced
1413	1227		Indigent Health Care Expenditures - Preceding Tax
1414	1228		Year's Indigent Health Care Expenditures) / (Current
1415	1229		Total Value - New Property Value)
1416	1230		(c) The taxing unit shall include a notice of the increase
1417	1231		in its no-new-revenue [effective] maintenance and operations rate
1418	1232		provided by this section, including a brief description and the
1419	1233		amount of the enhanced indigent health care expenditures, in the
1420	1234		information published under Section 26.04(e) and, as [if]
1421	1235		applicable, in the notice prescribed by Section 26.06 or 26.061
1422	1236		[26.06(b)].
1423		-	SECTION 43. Chapter 26, Tax Code, is amended by adding
1424		-	Sections 26.0442 and 26.0443 to read as follows:
1425		-	Sec. 26.0442. TAX RATE ADJUSTMENT FOR COUNTY INDIGENT
1426		-	DEFENSE COMPENSATION EXPENDITURES. (a) In this section,
1427		-	"indigent defense compensation expenditures" for a tax year means
1428		-	the amount paid by a county to provide appointed counsel for
1429		-	indigent individuals in criminal or civil proceedings in accordance
1430		-	with the schedule of fees adopted under Article 26.05, Code of
1431		-	Criminal Procedure, in the period beginning on July 1 of the tax
1432		-	year preceding the tax year for which the tax is adopted and ending
1433		-	on June 30 of the tax year for which the tax is adopted, less the
1434		-	amount of any state grants received by the county during that period
1435		-	for the same purpose.
1436		-	(b) If a county's indigent defense compensation
1437		-	expenditures exceed the amount of those expenditures for the
1438		-	preceding tax year, the no-new-revenue maintenance and operations
1439		-	rate for the county is increased by the lesser of the rates computed
1440		-	according to the following formulas:
1441		-	(Current Tax Year's Indigent Defense Compensation
1442		-	Expenditures - Preceding Tax Year's Indigent Defense
1443		-	Compensation Expenditures) / (Current Total Value -
1444		-	New Property Value)
1445		-	or
1446		-	(Preceding Tax Year's Indigent Defense Compensation
1447		-	Expenditures x 0.05) / (Current Total Value - New
1448		-	Property Value)
1449		-	(c) The county shall include a notice of the increase in the
1450		-	no-new-revenue maintenance and operations rate provided by this
1451		-	section, including a description and the amount of indigent defense
1452		-	compensation expenditures, in the information published under
1453		-	Section 26.04(e) and, as applicable, in the notice prescribed by
1454		-	Section 26.06 or 26.061.
1455		-	Sec. 26.0443. TAX RATE ADJUSTMENT FOR ELIGIBLE COUNTY
1456		-	HOSPITAL EXPENDITURES. (a) In this section:
1457		-	(1) "Eligible county hospital" means a hospital that:
1458		-	(A) is:
1459		-	(i) owned or leased by a county and operated
1460		-	in accordance with Chapter 263, Health and Safety Code; or
1461		-	(ii) owned or leased jointly by a
1462		-	municipality and a county and operated in accordance with Chapter
1463		-	265, Health and Safety Code; and
1464		-	(B) is located in an area not served by a hospital
1465		-	district created under Sections 4 through 11, Article IX, Texas
1466		-	Constitution.
1467		-	(2) "Eligible county hospital expenditures" for a tax
1468		-	year means the amount paid by a county or municipality in the period
1469		-	beginning on July 1 of the tax year preceding the tax year for which
1470		-	the tax is adopted and ending on June 30 of the tax year for which
1471		-	the tax is adopted to maintain and operate an eligible county
1472		-	hospital.
1473		-	(b) If a county's or municipality's eligible county hospital
1474		-	expenditures exceed the amount of those expenditures for the
1475		-	preceding tax year, the no-new-revenue maintenance and operations
1476		-	rate for the county or municipality, as applicable, is increased by
1477		-	the lesser of the rates computed according to the following
1478		-	formulas:
1479		-	(Current Tax Year's Eligible County Hospital
1480		-	Expenditures - Preceding Tax Year's Eligible County
1481		-	Hospital Expenditures) / (Current Total Value - New
1482		-	Property Value)
1483		-	or
1484		-	(Preceding Tax Year's Eligible County Hospital
1485		-	Expenditures x 0.08) / (Current Total Value - New
1486		-	Property Value)
1487		-	(c) The county or municipality shall include a notice of the
1488		-	increase in the no-new-revenue maintenance and operations rate
1489		-	provided by this section, including a description and amount of
1490		-	eligible county hospital expenditures, in the information
	1237	+	SECTION 35. Chapter 26, Tax Code, is amended by adding
	1238	+	Section 26.0442 to read as follows:
	1239	+	Sec. 26.0442. TAX RATE ADJUSTMENT FOR LOCAL OPTION
	1240	+	RESIDENCE HOMESTEAD EXEMPTIONS. (a) In this section, "local
	1241	+	option residence homestead exemption costs" means the amount of tax
	1242	+	revenue that a taxing unit was unable to collect in the preceding
	1243	+	tax year as a result of exemptions adopted by the taxing unit under
	1244	+	Sections 11.13(d) and (n), calculated by multiplying the adopted
	1245	+	tax rate of the taxing unit for the preceding tax year by the
	1246	+	appraised value of property that was not taxable by the taxing unit
	1247	+	in that tax year because of exemptions adopted by the taxing unit
	1248	+	under Sections 11.13(d) and (n).
	1249	+	(b) If a taxing unit's local option residence homestead
	1250	+	exemption costs exceed the amount of those costs for the preceding
	1251	+	tax year, the no-new-revenue maintenance and operations rate for
	1252	+	the taxing unit is increased by the rate computed according to the
	1253	+	following formula:
	1254	+	(Current Tax Year's Local Option Residence Homestead
	1255	+	Exemption Costs - Preceding Tax Year's Local Option
	1256	+	Residence Homestead Exemption Costs) / (Current Total
	1257	+	Value - New Property Value)
	1258	+	(c) The taxing unit shall include a notice of the increase
	1259	+	in the no-new-revenue maintenance and operations rate provided by
	1260	+	this section, including a description and the amount of local
	1261	+	option residence homestead exemption costs, in the information
1491	1262		published under Section 26.04(e) and, as applicable, in the notice
1492		-	prescribed by Section 26.06 or 26.061.
1493		-	SECTION 44. The heading to Section 26.045, Tax Code, is
1494		-	amended to read as follows:
1495		-	Sec. 26.045. VOTER-APPROVAL TAX RATE [ROLLBACK] RELIEF FOR
1496		-	POLLUTION CONTROL REQUIREMENTS.
1497		-	SECTION 45. Sections 26.045(a), (c), and (i), Tax Code, are
1498		-	amended to read as follows:
1499		-	(a) The voter-approval [rollback] tax rate for a political
1500		-	subdivision of this state is increased by the rate that, if applied
1501		-	to the [total] current total value, would impose an amount of taxes
1502		-	equal to the amount the political subdivision will spend out of its
1503		-	maintenance and operation funds under Section 26.012(16) to pay for
1504		-	a facility, device, or method for the control of air, water, or land
1505		-	pollution that is necessary to meet the requirements of a permit
1506		-	issued by the Texas Commission on Environmental Quality.
1507		-	(c) To receive an adjustment to the voter-approval
1508		-	[rollback] tax rate under this section, a political subdivision
1509		-	shall present information to the executive director of the Texas
1510		-	Commission on Environmental Quality in a permit application or in a
1511		-	request for any exemption from a permit that would otherwise be
1512		-	required detailing:
1513		-	(1) the anticipated environmental benefits from the
1514		-	installation of the facility, device, or method for the control of
1515		-	air, water, or land pollution;
1516		-	(2) the estimated cost of the pollution control
1517		-	facility, device, or method; and
1518		-	(3) the purpose of the installation of the facility,
1519		-	device, or method, and the proportion of the installation that is
1520		-	pollution control property.
1521		-	(i) A political subdivision of the state seeking an
1522		-	adjustment in its voter-approval [rollback] tax rate under this
1523		-	section shall provide to its tax assessor a copy of the letter
1524		-	issued by the executive director of the Texas Commission on
1525		-	Environmental Quality under Subsection (d). The tax assessor shall
1526		-	accept the copy of the letter from the executive director as
1527		-	conclusive evidence that the facility, device, or method is used
1528		-	wholly or partly as pollution control property and shall adjust the
1529		-	voter-approval [rollback] tax rate for the political subdivision as
1530		-	provided for by Subsection (a).
1531		-	SECTION 46. Section 26.05, Tax Code, is amended by amending
	1263	+	prescribed by Section 26.06 or Section 26.061.
	1264	+	SECTION 36. Section 26.05, Tax Code, is amended by amending
1532	1265		Subsections (a), (b), (c), (d), (e), and (g) and adding Subsections
1533	1266		(d-1), (d-2), and (e-1) to read as follows:
1534	1267		(a) The governing body of each taxing unit[, before the
1535	1268		later of September 30 or the 60th day after the date the certified
1536	1269		appraisal roll is received by the taxing unit,] shall adopt a tax
1537	1270		rate for the current tax year and shall notify the assessor for the
1538	1271		taxing unit of the rate adopted. The governing body must adopt a
1539	1272		tax rate before the later of September 30 or the 60th day after the
1540	1273		date the certified appraisal roll is received by the taxing unit,
1541	1274		except that the governing body must adopt a tax rate that exceeds
1542		-	the ~~voter-approval~~ tax rate not later than the 71st day before the
1543		-	~~next~~ uniform election date prescribed by Section 41.001, Election
1544		-	~~Code,~~ that occurs in November of that year. The tax rate consists
1545		-	~~of two~~ components, each of which must be approved separately. The
	1275	+	the rollback tax rate not later than the 71st day before the next
	1276	+	uniform election date prescribed by Section 41.001, Election Code,
	1277	+	that occurs in November of that year. The tax rate consists of two
	1278	+	components, each of which must be approved separately. The
1546	1279		components are:
1547	1280		(1) for a taxing unit other than a school district, the
1548	1281		rate that, if applied to the total taxable value, will impose the
1549		-	total amount described by [published under] Section
1550		-	26.04(e)(3)(C), less any amount of additional sales and use tax
	1282	+	total amount described by [published under] Section 26.04(e)(4)(C)
	1283	+	[26.04(e)(3)(C)], less any amount of additional sales and use tax
1551	1284		revenue that will be used to pay debt service, or, for a school
1552	1285		district, the rate calculated under Section
1553	1286		44.004(c)(5)(A)(ii)(b), Education Code; and
1554	1287		(2) the rate that, if applied to the total taxable
1555	1288		value, will impose the amount of taxes needed to fund maintenance
1556	1289		and operation expenditures of the taxing unit for the next year.
1557	1290		(b) A taxing unit may not impose property taxes in any year
1558	1291		until the governing body has adopted a tax rate for that year, and
1559	1292		the annual tax rate must be set by ordinance, resolution, or order,
1560	1293		depending on the method prescribed by law for adoption of a law by
1561	1294		the governing body. The vote on the ordinance, resolution, or order
1562	1295		setting the tax rate must be separate from the vote adopting the
1563	1296		budget. For a taxing unit other than a school district, the vote on
1564	1297		the ordinance, resolution, or order setting a tax rate that exceeds
1565	1298		the no-new-revenue [effective] tax rate must be a record vote, and
1566	1299		at least 60 percent of the members of the governing body must vote
1567	1300		in favor of the ordinance, resolution, or order. For a school
1568	1301		district, the vote on the ordinance, resolution, or order setting a
1569	1302		tax rate that exceeds the sum of the no-new-revenue [effective]
1570	1303		maintenance and operations tax rate of the district as determined
1571	1304		under Section 26.08(i) and the district's current debt rate must be
1572	1305		a record vote, and at least 60 percent of the members of the
1573	1306		governing body must vote in favor of the ordinance, resolution, or
1574	1307		order. A motion to adopt an ordinance, resolution, or order setting
1575	1308		a tax rate that exceeds the no-new-revenue [effective] tax rate
1576	1309		must be made in the following form: "I move that the property tax
1577	1310		rate be increased by the adoption of a tax rate of (specify tax
1578	1311		rate), which is effectively a (insert percentage by which the
1579	1312		proposed tax rate exceeds the no-new-revenue [effective] tax rate)
1580	1313		percent increase in the tax rate." If the ordinance, resolution, or
1581	1314		order sets a tax rate that, if applied to the total taxable value,
1582	1315		will impose an amount of taxes to fund maintenance and operation
1583	1316		expenditures of the taxing unit that exceeds the amount of taxes
1584	1317		imposed for that purpose in the preceding year, the taxing unit
1585	1318		must:
1586	1319		(1) include in the ordinance, resolution, or order in
1587	1320		type larger than the type used in any other portion of the document:
1588	1321		(A) the following statement: "THIS TAX RATE WILL
1589	1322		RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
1590	1323		TAX RATE."; and
1591	1324		(B) if the tax rate exceeds the no-new-revenue
1592	1325		[effective] maintenance and operations rate, the following
1593	1326		statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
1594	1327		PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
1595	1328		[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
1596	1329		TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
1597	1330		APPROXIMATELY $(Insert amount)."; and
1598	1331		(2) include on the home page of the [any] Internet
1599	1332		website of [operated by] the taxing unit:
1600	1333		(A) the following statement: "(Insert name of
1601	1334		taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR
1602	1335		MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
1603	1336		(B) if the tax rate exceeds the no-new-revenue
1604	1337		[effective] maintenance and operations rate, the following
1605	1338		statement: "THE TAX RATE WILL EFFECTIVELY BE RAISED BY (INSERT
1606	1339		PERCENTAGE BY WHICH THE TAX RATE EXCEEDS THE NO-NEW-REVENUE
1607	1340		[EFFECTIVE] MAINTENANCE AND OPERATIONS RATE) PERCENT AND WILL RAISE
1608	1341		TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY
1609	1342		APPROXIMATELY $(Insert amount)."
1610	1343		(c) If the governing body of a taxing unit does not adopt a
1611	1344		tax rate before the date required by Subsection (a), the tax rate
1612	1345		for the taxing unit for that tax year is the lower of the
1613	1346		no-new-revenue [effective] tax rate calculated for that tax year or
1614	1347		the tax rate adopted by the taxing unit for the preceding tax year.
1615	1348		A tax rate established by this subsection is treated as an adopted
1616	1349		tax rate. Before the fifth day after the establishment of a tax
1617	1350		rate by this subsection, the governing body of the taxing unit must
1618	1351		ratify the applicable tax rate in the manner required by Subsection
1619	1352		(b).
1620	1353		(d) The governing body of a taxing unit other than a school
1621	1354		district may not adopt a tax rate that exceeds the lower of the
1622		-	voter-approval [rollback] tax rate or the no-new-revenue
1623		-	[effective] tax rate calculated as provided by this chapter until
1624		-	the governing body has held a public hearing [two public hearings]
1625		-	on the proposed tax rate and has otherwise complied with Section
1626		-	26.06 and Section 26.065. The governing body of a taxing unit shall
1627		-	reduce a tax rate set by law or by vote of the electorate to the
1628		-	lower of the voter-approval [rollback] tax rate or the
1629		-	no-new-revenue [effective] tax rate and may not adopt a higher rate
1630		-	unless it first complies with Section 26.06.
	1355	+	rollback tax rate or the no-new-revenue [effective] tax rate
	1356	+	calculated as provided by this chapter until the governing body has
	1357	+	held a public hearing [two public hearings] on the proposed tax rate
	1358	+	and has otherwise complied with Section 26.06 and Section 26.065.
	1359	+	The governing body of a taxing unit shall reduce a tax rate set by
	1360	+	law or by vote of the electorate to the lower of the rollback tax
	1361	+	rate or the no-new-revenue [effective] tax rate and may not adopt a
	1362	+	higher rate unless it first complies with Section 26.06.
1631	1363		(d-1) The governing body of a taxing unit other than a
1632	1364		school district may not hold a public hearing on a proposed tax rate
1633		-	or a public meeting to adopt a tax rate until the fifth day ~~after the~~
1634		-	date the chief appraiser of each appraisal district in ~~which the~~
1635		-	taxing unit participates has:
	1365	+	or a public meeting to adopt a tax rate until the fifth business day
	1366	+	after the date the chief appraiser of each appraisal district in
	1367	+	which the taxing unit participates has:
1636	1368		(1) delivered the notice required by Section
1637	1369		26.04(e-2); and
1638	1370		(2) complied with Section 26.17(f).
1639	1371		(d-2) Notwithstanding Subsection (a), the governing body of
1640	1372		a taxing unit other than a school district may not adopt a tax rate
1641	1373		until the chief appraiser of each appraisal district in which the
1642	1374		taxing unit participates has complied with Subsection (d-1).
1643	1375		(e) A person who owns taxable property is entitled to an
1644	1376		injunction restraining the collection of taxes by a taxing unit in
1645	1377		which the property is taxable if the taxing unit has not complied
1646	1378		with the requirements of this section or Section 26.04 [and the
1647	1379		failure to comply was not in good faith]. It is a defense in an
1648	1380		action for an injunction under this subsection that the failure to
1649	1381		comply was in good faith. An action to enjoin the collection of
1650	1382		taxes must be filed not later than the 15th day after the date the
1651	1383		taxing unit adopts a tax rate. A property owner is not required to
1652	1384		pay the taxes imposed by a taxing unit on the owner's property while
1653	1385		an action filed by the property owner to enjoin the collection of
1654	1386		taxes imposed by the taxing unit on the owner's property is pending.
1655	1387		If the property owner pays the taxes and subsequently prevails in
1656	1388		the action, the property owner is entitled to a refund of the taxes
1657	1389		paid, together with reasonable attorney's fees and court costs.
1658	1390		The property owner is not required to apply to the collector for the
1659	1391		taxing unit to receive the refund [prior to the date a taxing unit
1660	1392		delivers substantially all of its tax bills].
1661	1393		(e-1) The governing body of a taxing unit that imposes an
1662	1394		additional sales and use tax may not adopt the component of the tax
1663	1395		rate of the taxing unit described by Subsection (a)(1) of this
1664	1396		section until the chief financial officer or the auditor for the
1665	1397		taxing unit submits to the governing body of the taxing unit a
1666	1398		written certification that the amount of additional sales and use
1667	1399		tax revenue that will be used to pay debt service has been deducted
1668		-	from the total amount described by Section 26.04(e)(3)(C) as
	1400	+	from the total amount described by Section 26.04(e)(4)(C) as
1669	1401		required by Subsection (a)(1) of this section. The comptroller
1670	1402		shall prescribe the form of the certification required by this
1671	1403		subsection and the manner in which it is required to be submitted.
1672	1404		(g) Notwithstanding Subsection (a), the governing body of a
1673	1405		school district that elects to adopt a tax rate before the adoption
1674	1406		of a budget for the fiscal year that begins in the current tax year
1675	1407		may adopt a tax rate for the current tax year before receipt of the
1676	1408		certified appraisal roll for the school district if the chief
1677	1409		appraiser of the appraisal district in which the school district
1678	1410		participates has certified to the assessor for the school district
1679	1411		an estimate of the taxable value of property in the school district
1680	1412		as provided by Section 26.01(e). If a school district adopts a tax
1681	1413		rate under this subsection, the no-new-revenue [effective] tax rate
1682		-	and the ~~voter-approval [~~rollback] tax rate of the district shall be
1683		-	~~calculated based~~ on the certified estimate of taxable value.
1684		-	SECTION 47. Section 26.052, Tax Code, is amended by
	1414	+	and the rollback tax rate of the district shall be calculated based
	1415	+	on the certified estimate of taxable value.
	1416	+	SECTION 37. Section 26.052, Tax Code, is amended by
1685	1417		amending Subsection (e) and adding Subsection (f) to read as
1686	1418		follows:
1687	1419		(e) Public notice provided under Subsection (c) must
1688	1420		specify:
1689	1421		(1) the tax rate that the governing body proposes to
1690	1422		adopt;
1691	1423		(2) the date, time, and location of the meeting of the
1692	1424		governing body of the taxing unit at which the governing body will
1693	1425		consider adopting the proposed tax rate; and
1694	1426		(3) if the proposed tax rate for the taxing unit
1695	1427		exceeds the taxing unit's no-new-revenue [effective] tax rate
1696	1428		calculated as provided by Section 26.04, a statement substantially
1697	1429		identical to the following: "The proposed tax rate would increase
1698	1430		total taxes in (name of taxing unit) by (percentage by which the
1699	1431		proposed tax rate exceeds the no-new-revenue [effective] tax
1700	1432		rate)."
1701	1433		(f) A taxing unit to which this section applies that elects
1702	1434		to provide public notice of its proposed tax rate under Subsection
1703	1435		(c)(2) must also provide public notice of its proposed tax rate by
1704	1436		posting notice of the proposed tax rate, including the information
1705	1437		prescribed by Subsection (e), prominently on the home page of the
1706	1438		Internet website of the taxing unit.
1707		-	SECTION 48. Section 26.06, Tax Code, is amended by amending
	1439	+	SECTION 38. Section 26.06, Tax Code, is amended by amending
1708	1440		Subsections (a), (b), (c), (d), and (e) and adding Subsections
1709	1441		(b-1), (b-2), (b-3), and (b-4) to read as follows:
1710	1442		(a) A public hearing required by Section 26.05 may not be
1711		-	held before the ~~fifth [~~seventh] day after the date the notice of the
1712		-	~~public~~ hearing is given. The [second hearing may not be held
1713		-	~~earlier than~~ the third day after the date of the first hearing.
1714		-	~~Each] hearing~~ must be on a weekday that is not a public holiday. The
1715		-	~~[Each]~~ hearing must be held inside the boundaries of the unit in a
1716		-	~~publicly~~ owned building or, if a suitable publicly owned building
1717		-	~~is not~~ available, in a suitable building to which the public
1718		-	~~normally has~~ access. At the hearing [hearings], the governing body
1719		-	~~must afford~~ adequate opportunity for proponents and opponents of
1720		-	~~the tax~~ increase to present their views.
	1443	+	held before the seventh day after the date the notice of the public
	1444	+	hearing is given. The [second hearing may not be held earlier than
	1445	+	the third day after the date of the first hearing. Each] hearing
	1446	+	must be on a weekday that is not a public holiday. The [Each]
	1447	+	hearing must be held inside the boundaries of the unit in a publicly
	1448	+	owned building or, if a suitable publicly owned building is not
	1449	+	available, in a suitable building to which the public normally has
	1450	+	access. At the hearing [hearings], the governing body must afford
	1451	+	adequate opportunity for proponents and opponents of the tax
	1452	+	increase to present their views.
1721	1453		(b) The notice of a public hearing may not be smaller than
1722	1454		one-quarter page of a standard-size or a tabloid-size newspaper,
1723	1455		and the headline on the notice must be in 24-point or larger type.
1724	1456		[The notice must contain a statement in the following form:
1725	1457		["NOTICE OF PUBLIC HEARING ON TAX INCREASE
1726	1458		["The (name of the taxing unit) will hold two public hearings
1727	1459		on a proposal to increase total tax revenues from properties on the
1728	1460		tax roll in the preceding tax year by (percentage by which proposed
1729	1461		tax rate exceeds lower of rollback tax rate or effective tax rate
1730	1462		calculated under this chapter) percent. Your individual taxes may
1731	1463		increase at a greater or lesser rate, or even decrease, depending on
1732	1464		the change in the taxable value of your property in relation to the
1733	1465		change in taxable value of all other property and the tax rate that
1734	1466		is adopted.
1735	1467		["The first public hearing will be held on (date and time) at
1736	1468		(meeting place).
1737	1469		["The second public hearing will be held on (date and time) at
1738	1470		(meeting place).
1739	1471		["(Names of all members of the governing body, showing how
1740	1472		each voted on the proposal to consider the tax increase or, if one
1741	1473		or more were absent, indicating the absences.)
1742	1474		["The average taxable value of a residence homestead in (name
1743	1475		of taxing unit) last year was $____ (average taxable value of a
1744	1476		residence homestead in the taxing unit for the preceding tax year,
1745	1477		disregarding residence homestead exemptions available only to
1746	1478		disabled persons or persons 65 years of age or older). Based on
1747	1479		last year's tax rate of $____ (preceding year's adopted tax rate)
1748	1480		per $100 of taxable value, the amount of taxes imposed last year on
1749	1481		the average home was $____ (tax on average taxable value of a
1750	1482		residence homestead in the taxing unit for the preceding tax year,
1751	1483		disregarding residence homestead exemptions available only to
1752	1484		disabled persons or persons 65 years of age or older).
1753	1485		["The average taxable value of a residence homestead in (name
1754	1486		of taxing unit) this year is $____ (average taxable value of a
1755	1487		residence homestead in the taxing unit for the current tax year,
1756	1488		disregarding residence homestead exemptions available only to
1757	1489		disabled persons or persons 65 years of age or older). If the
1758	1490		governing body adopts the effective tax rate for this year of $____
1759	1491		(effective tax rate) per $100 of taxable value, the amount of taxes
1760	1492		imposed this year on the average home would be $____ (tax on average
1761	1493		taxable value of a residence homestead in the taxing unit for the
1762	1494		current tax year, disregarding residence homestead exemptions
1763	1495		available only to disabled persons or persons 65 years of age or
1764	1496		older).
1765	1497		["If the governing body adopts the proposed tax rate of $____
1766	1498		(proposed tax rate) per $100 of taxable value, the amount of taxes
1767	1499		imposed this year on the average home would be $____ (tax on the
1768	1500		average taxable value of a residence in the taxing unit for the
1769	1501		current year disregarding residence homestead exemptions available
1770	1502		only to disabled persons or persons 65 years of age or older).
1771	1503		["Members of the public are encouraged to attend the hearings
1772	1504		and express their views."]
1773	1505		(b-1) If the proposed tax rate exceeds the no-new-revenue
1774		-	tax rate and the ~~voter-approval~~ tax rate of the taxing unit, the
1775		-	~~notice~~ must contain a statement in the following form:
	1506	+	tax rate and the rollback tax rate of the taxing unit, the notice
	1507	+	must contain a statement in the following form:
1776	1508		"NOTICE OF PUBLIC HEARING ON TAX INCREASE
1777	1509		"PROPOSED TAX RATE $__________ per $100
1778	1510		"NO-NEW-REVENUE TAX RATE $__________ per $100
1779		-	"~~VOTER-APPROVAL~~ TAX RATE $__________ per $100
	1511	+	"ROLLBACK TAX RATE $__________ per $100
1780	1512		"The no-new-revenue tax rate is the tax rate for the (current
1781	1513		tax year) tax year that will raise the same amount of property tax
1782	1514		revenue for (name of taxing unit) from the same properties in both
1783	1515		the (preceding tax year) tax year and the (current tax year) tax
1784	1516		year.
1785		-	"The ~~voter-approval~~ tax rate is the highest tax rate that
1786		-	~~(name of~~ taxing unit) may adopt without holding an election to ~~seek~~
1787		-	~~voter approval of the~~ rate.
	1517	+	"The rollback tax rate is the highest tax rate that (name of
	1518	+	taxing unit) may adopt without holding an election to ratify the
	1519	+	rate.
1788	1520		"The proposed tax rate is greater than the no-new-revenue tax
1789	1521		rate. This means that (name of taxing unit) is proposing to
1790	1522		increase property taxes for the (current tax year) tax year.
1791	1523		"A public hearing on the proposed tax rate will be held on
1792	1524		(date and time) at (meeting place).
1793		-	"The proposed tax rate is also greater than the
1794		-	~~voter-approval tax~~ rate. If (name of taxing unit) adopts the
1795		-	~~proposed tax rate, (name~~ of taxing unit) is required to hold an
1796		-	~~election so that the voters~~ may accept or reject the proposed tax
1797		-	~~rate. If a majority of the~~ voters reject the proposed tax rate, the
1798		-	tax rate of the ~~(name of taxing unit) will be the voter-approval tax~~
1799		-	rate. The election will be held on (date of election). ~~You may~~
1800		-	contact the (name of office responsible for administering ~~the~~
1801		-	election) for information about voting locations. The hours of
	1525	+	"The proposed tax rate is also greater than the rollback tax
	1526	+	rate. If (name of taxing unit) adopts the proposed tax rate, (name
	1527	+	of taxing unit) is required to hold an election so that the voters
	1528	+	may accept or reject the proposed tax rate. If a majority of the
	1529	+	voters reject the proposed tax rate, the (name of taxing unit) will
	1530	+	be required to adopt a new tax rate that is not greater than the
	1531	+	rollback tax rate. The election will be held on (date of election).
	1532	+	You may contact the (name of office responsible for administering
	1533	+	the election) for information about voting locations. The hours of
1802	1534		voting on election day are (voting hours).
1803	1535		"Your taxes owed under any of the tax rates mentioned above
1804	1536		can be calculated as follows:
1805	1537		"Property tax amount = tax rate x taxable value of your
1806	1538		property / 100
1807	1539		"(Names of all members of the governing body, showing how
1808	1540		each voted on the proposal to consider the tax increase or, if one
1809		-	or more were absent, indicating the absences.)
1810		-	"The 86th Texas Legislature modified the manner in which the
1811		-	voter-approval tax rate is calculated to limit the rate of growth of
1812		-	property taxes in the state."
	1541	+	or more were absent, indicating the absences.)"
1813	1542		(b-2) If the proposed tax rate exceeds the no-new-revenue
1814		-	tax rate but does not exceed the voter-approval tax rate of the
1815		-	taxing unit, the notice must contain a statement in the following
1816		-	form:
	1543	+	tax rate but does not exceed the rollback tax rate of the taxing
	1544	+	unit, the notice must contain a statement in the following form:
1817	1545		"NOTICE OF PUBLIC HEARING ON TAX INCREASE
1818	1546		"PROPOSED TAX RATE $__________ per $100
1819	1547		"NO-NEW-REVENUE TAX RATE $__________ per $100
1820		-	"~~VOTER-APPROVAL~~ TAX RATE $__________ per $100
	1548	+	"ROLLBACK TAX RATE $__________ per $100
1821	1549		"The no-new-revenue tax rate is the tax rate for the (current
1822	1550		tax year) tax year that will raise the same amount of property tax
1823	1551		revenue for (name of taxing unit) from the same properties in both
1824	1552		the (preceding tax year) tax year and the (current tax year) tax
1825	1553		year.
1826		-	"The ~~voter-approval~~ tax rate is the highest tax rate that
1827		-	~~(name of~~ taxing unit) may adopt without holding an election to ~~seek~~
1828		-	~~voter approval of the~~ rate.
	1554	+	"The rollback tax rate is the highest tax rate that (name of
	1555	+	taxing unit) may adopt without holding an election to ratify the
	1556	+	rate.
1829	1557		"The proposed tax rate is greater than the no-new-revenue tax
1830	1558		rate. This means that (name of taxing unit) is proposing to
1831	1559		increase property taxes for the (current tax year) tax year.
1832	1560		"A public hearing on the proposed tax rate will be held on
1833	1561		(date and time) at (meeting place).
1834		-	"The proposed tax rate is not greater than the ~~voter-approval~~
1835		-	~~tax~~ rate. As a result, (name of taxing unit) is not required to hold
1836		-	an election at which voters may accept or reject the proposed tax
1837		-	~~rate.~~ However, you may express your support for or opposition to
1838		-	~~the~~ proposed tax rate by contacting the members of the (name of
	1562	+	"The proposed tax rate is not greater than the rollback tax
	1563	+	rate. As a result, (name of taxing unit) is not required to hold an
	1564	+	election at which voters may accept or reject the proposed tax rate.
	1565	+	However, you may express your support for or opposition to the
	1566	+	proposed tax rate by contacting the members of the (name of
1839	1567		governing body) of (name of taxing unit) at their offices or by
1840	1568		attending the public hearing mentioned above.
1841	1569		"Your taxes owed under any of the tax rates mentioned above
1842	1570		can be calculated as follows:
1843	1571		"Property tax amount = tax rate x taxable value of your
1844	1572		property / 100
1845	1573		"(Names of all members of the governing body, showing how
1846	1574		each voted on the proposal to consider the tax increase or, if one
1847		-	or more were absent, indicating the absences.)
1848		-	"The 86th Texas Legislature modified the manner in which the
1849		-	voter-approval tax rate is calculated to limit the rate of growth of
1850		-	property taxes in the state."
	1575	+	or more were absent, indicating the absences.)"
1851	1576		(b-3) If the proposed tax rate does not exceed the
1852		-	no-new-revenue tax rate but exceeds the ~~voter-approval~~ tax rate of
1853		-	~~the~~ taxing unit, the notice must contain a statement in the
1854		-	~~following~~ form:
	1577	+	no-new-revenue tax rate but exceeds the rollback tax rate of the
	1578	+	taxing unit, the notice must contain a statement in the following
	1579	+	form:
1855	1580		"NOTICE OF PUBLIC HEARING ON TAX RATE
1856	1581		"PROPOSED TAX RATE $__________ per $100
1857	1582		"NO-NEW-REVENUE TAX RATE $__________ per $100
1858		-	"~~VOTER-APPROVAL~~ TAX RATE $__________ per $100
	1583	+	"ROLLBACK TAX RATE $__________ per $100
1859	1584		"The no-new-revenue tax rate is the tax rate for the (current
1860	1585		tax year) tax year that will raise the same amount of property tax
1861	1586		revenue for (name of taxing unit) from the same properties in both
1862	1587		the (preceding tax year) tax year and the (current tax year) tax
1863	1588		year.
1864		-	"The ~~voter-approval~~ tax rate is the highest tax rate that
1865		-	~~(name of~~ taxing unit) may adopt without holding an election to ~~seek~~
1866		-	~~voter approval of the~~ rate.
	1589	+	"The rollback tax rate is the highest tax rate that (name of
	1590	+	taxing unit) may adopt without holding an election to ratify the
	1591	+	rate.
1867	1592		"The proposed tax rate is not greater than the no-new-revenue
1868	1593		tax rate. This means that (name of taxing unit) is not proposing to
1869	1594		increase property taxes for the (current tax year) tax year.
1870	1595		"A public hearing on the proposed tax rate will be held on
1871	1596		(date and time) at (meeting place).
1872		-	"The proposed tax rate is greater than the ~~voter-approval~~ tax
1873		-	~~rate.~~ If (name of taxing unit) adopts the proposed tax rate, (name
1874		-	of taxing unit) is required to hold an election so that the voters
1875		-	~~may~~ accept or reject the proposed tax rate. If a majority of the
1876		-	~~voters~~ reject the proposed tax rate, the ~~tax rate of the~~ (name of
1877		-	~~taxing unit)~~ ~~will be the voter-approval~~ tax rate. The ~~election will~~
1878		-	be held on (date of election). ~~You may contact the (name of office~~
1879		-	responsible for administering ~~the election) for information about~~
1880		-	voting locations. The hours of ~~voting on election day are (voting~~
1881		-	hours).
	1597	+	"The proposed tax rate is greater than the rollback tax rate.
	1598	+	If (name of taxing unit) adopts the proposed tax rate, (name of
	1599	+	taxing unit) is required to hold an election so that the voters may
	1600	+	accept or reject the proposed tax rate. If a majority of the voters
	1601	+	reject the proposed tax rate, the (name of taxing unit) will be
	1602	+	required to adopt a new tax rate that is not greater than the
	1603	+	rollback tax rate. The election will be held on (date of election).
	1604	+	You may contact the (name of office responsible for administering
	1605	+	the election) for information about voting locations. The hours of
	1606	+	voting on election day are (voting hours).
1882	1607		"Your taxes owed under any of the tax rates mentioned above
1883	1608		can be calculated as follows:
1884	1609		"Property tax amount = tax rate x taxable value of your
1885	1610		property / 100
1886	1611		"(Names of all members of the governing body, showing how
1887	1612		each voted on the proposal to consider the tax rate or, if one or
1888		-	more were absent, indicating the absences.)
1889		-	"The 86th Texas Legislature modified the manner in which the
1890		-	voter-approval tax rate is calculated to limit the rate of growth of
1891		-	property taxes in the state."
	1613	+	more were absent, indicating the absences.)"
1892	1614		(b-4) In addition to including the information described by
1893	1615		Subsection (b-1), (b-2), or (b-3), as applicable, the notice must
1894	1616		include the information described by Section 26.062.
1895	1617		(c) The notice of a public hearing under this section may be
1896	1618		delivered by mail to each property owner in the taxing unit, or may
1897	1619		be published in a newspaper. If the notice is published in a
1898	1620		newspaper, it may not be in the part of the paper in which legal
1899	1621		notices and classified advertisements appear. If the taxing unit
1900	1622		publishes the notice in a newspaper [operates an Internet website],
1901	1623		the taxing unit must also post the notice prominently on the home
1902	1624		page of the Internet website of the taxing unit [must be posted on
1903	1625		the website] from the date the notice is first published until the
1904	1626		[second] public hearing is concluded.
1905	1627		(d) The governing body may vote on the proposed tax rate at
1906	1628		the public hearing. If the governing body does not vote on the
1907	1629		proposed tax rate at the public hearing, [At the public hearings]
1908	1630		the governing body shall announce at the public hearing the date,
1909	1631		time, and place of the meeting at which it will vote on the proposed
1910		-	tax rate. [After each hearing the governing body shall give notice
1911		-	of the meeting at which it will vote on the proposed tax rate and the
1912		-	notice shall be in the same form as prescribed by Subsections (b)
1913		-	and (c), except that it must state the following:
1914		-	["NOTICE OF TAX REVENUE INCREASE
1915		-	["The (name of the taxing unit) conducted public hearings on
1916		-	(date of first hearing) and (date of second hearing) on a proposal
1917		-	to increase the total tax revenues of the (name of the taxing unit)
1918		-	from properties on the tax roll in the preceding year by (percentage
1919		-	by which proposed tax rate exceeds lower of rollback tax rate or
1920		-	effective tax rate calculated under this chapter) percent.
1921		-	["The total tax revenue proposed to be raised last year at
1922		-	last year's tax rate of (insert tax rate for the preceding year) for
1923		-	each $100 of taxable value was (insert total amount of taxes imposed
1924		-	in the preceding year).
1925		-	["The total tax revenue proposed to be raised this year at the
	1632	+	tax rate and, after the hearing, [. After each hearing the
	1633	+	governing body] shall give notice of the meeting [at which it will
	1634	+	vote on the proposed tax rate and the notice shall be] in the same
	1635	+	form as prescribed by Subsections (b) and (c), except that the
	1636	+	notice [it] must state the following:
	1637	+	"NOTICE OF TAX REVENUE INCREASE
	1638	+	"The (name of the taxing unit) conducted a public hearing
	1639	+	[hearings] on (date of [first] hearing) [and (date of second
	1640	+	hearing)] on a proposal to increase the total tax revenues of the
	1641	+	(name of the taxing unit) from properties on the tax roll in the
	1642	+	preceding year by (percentage by which proposed tax rate exceeds
	1643	+	lower of rollback tax rate or no-new-revenue [effective] tax rate
	1644	+	calculated under this chapter) percent.
	1645	+	"The total tax revenue proposed to be raised last year at last
	1646	+	year's tax rate of (insert tax rate for the preceding year) for each
	1647	+	$100 of taxable value was (insert total amount of taxes imposed in
	1648	+	the preceding year).
	1649	+	"The total tax revenue proposed to be raised this year at the
1926	1650		proposed tax rate of (insert proposed tax rate) for each $100 of
1927	1651		taxable value, excluding tax revenue to be raised from new property
1928	1652		added to the tax roll this year, is (insert amount computed by
1929	1653		multiplying proposed tax rate by the difference between current
1930	1654		total value and new property value).
1931		-	["The total tax revenue proposed to be raised this year at the
	1655	+	"The total tax revenue proposed to be raised this year at the
1932	1656		proposed tax rate of (insert proposed tax rate) for each $100 of
1933	1657		taxable value, including tax revenue to be raised from new property
1934	1658		added to the tax roll this year, is (insert amount computed by
1935	1659		multiplying proposed tax rate by current total value).
1936		-	["The (governing body of the taxing unit) is scheduled to
1937		-	~~vote~~ on the tax rate that will result in that tax increase at a
1938		-	~~public~~ meeting to be held on (date of meeting) at (location of
1939		-	~~meeting,~~ including mailing address) at (time of meeting).
1940		-	["The (governing body of the taxing unit) proposes to use the
	1660	+	"The (governing body of the taxing unit) is scheduled to vote
	1661	+	on the tax rate that will result in that tax increase at a public
	1662	+	meeting to be held on (date of meeting) at (location of meeting,
	1663	+	including mailing address) at (time of meeting).
	1664	+	"The (governing body of the taxing unit) proposes to use the
1941	1665		increase in total tax revenue for the purpose of (description of
1942		-	purpose of increase)."]
1943		-	(e) A [The] meeting to vote on the tax increase may not be
	1666	+	purpose of increase)."
	1667	+	(e) A [The] meeting to vote on the tax increase for which
	1668	+	notice is required to be provided under Subsection (d) may not be
1944	1669		held [earlier than the third day or] later than the seventh [14th]
1945	1670		day after the date of the [second] public hearing. The meeting must
1946	1671		be held inside the boundaries of the taxing unit in a publicly owned
1947	1672		building or, if a suitable publicly owned building is not
1948	1673		available, in a suitable building to which the public normally has
1949		-	access. [If the governing body does not adopt a tax rate that
1950		-	exceeds the lower of the rollback tax rate or the effective tax rate
1951		-	by the 14th day, it must give a new notice under Subsection (d)
1952		-	before it may adopt a rate that exceeds the lower of the rollback
1953		-	tax rate or the effective tax rate.]
1954		-	SECTION 49. Chapter 26, Tax Code, is amended by adding
	1674	+	access. If the governing body does not adopt a tax rate that
	1675	+	exceeds the lower of the rollback tax rate or the no-new-revenue
	1676	+	[effective] tax rate by the seventh [14th] day, it must give a new
	1677	+	notice under Subsection (d) before it may adopt a rate that exceeds
	1678	+	the lower of the rollback tax rate or the no-new-revenue
	1679	+	[effective] tax rate.
	1680	+	SECTION 39. Chapter 26, Tax Code, is amended by adding
1955	1681		Sections 26.061, 26.062, and 26.063 to read as follows:
1956	1682		Sec. 26.061. NOTICE OF MEETING TO VOTE ON PROPOSED TAX RATE
1957		-	THAT DOES NOT EXCEED LOWER OF NO-NEW-REVENUE OR VOTER-APPROVAL TAX
1958		-	RATE. (a) This section applies only to the governing body of a
1959		-	taxing unit other than a school district that proposes to adopt a
1960		-	tax rate that does not exceed the lower of the no-new-revenue tax
1961		-	rate or the voter-approval tax rate calculated as provided by this
1962		-	chapter.
	1683	+	THAT DOES NOT EXCEED LOWER OF NO-NEW-REVENUE OR ROLLBACK TAX RATE.
	1684	+	(a) This section applies only to the governing body of a taxing
	1685	+	unit other than a school district that proposes to adopt a tax rate
	1686	+	that does not exceed the lower of the no-new-revenue tax rate or the
	1687	+	rollback tax rate calculated as provided by this chapter.
1963	1688		(b) The notice of the meeting at which the governing body of
1964	1689		the taxing unit will vote on the proposed tax rate must contain a
1965	1690		statement in the following form:
1966	1691		"NOTICE OF MEETING TO VOTE ON TAX RATE
1967	1692		"PROPOSED TAX RATE $__________ per $100
1968	1693		"NO-NEW-REVENUE TAX RATE $__________ per $100
1969		-	"~~VOTER-APPROVAL~~ TAX RATE $__________ per $100
	1694	+	"ROLLBACK TAX RATE $__________ per $100
1970	1695		"The no-new-revenue tax rate is the tax rate for the (current
1971	1696		tax year) tax year that will raise the same amount of property tax
1972	1697		revenue for (name of taxing unit) from the same properties in both
1973	1698		the (preceding tax year) tax year and the (current tax year) tax
1974	1699		year.
1975		-	"The ~~voter-approval~~ tax rate is the highest tax rate that
1976		-	~~(name of~~ taxing unit) may adopt without holding an election to ~~seek~~
1977		-	~~voter approval of the~~ rate.
	1700	+	"The rollback tax rate is the highest tax rate that (name of
	1701	+	taxing unit) may adopt without holding an election to ratify the
	1702	+	rate.
1978	1703		"The proposed tax rate is not greater than the no-new-revenue
1979	1704		tax rate. This means that (name of taxing unit) is not proposing to
1980	1705		increase property taxes for the (current tax year) tax year.
1981	1706		"A public meeting to vote on the proposed tax rate will be
1982	1707		held on (date and time) at (meeting place).
1983		-	"The proposed tax rate is also not greater than the
1984		-	voter-approval tax rate. As a result, (name of taxing unit) is not
1985		-	required to hold an election to seek voter approval of the rate.
1986		-	However, you may express your support for or opposition to the
1987		-	proposed tax rate by contacting the members of the (name of
1988		-	governing body) of (name of taxing unit) at their offices or by
1989		-	attending the public meeting mentioned above.
	1708	+	"The proposed tax rate is also not greater than the rollback
	1709	+	tax rate. As a result, (name of taxing unit) is not required to hold
	1710	+	an election to ratify the rate. However, you may express your
	1711	+	support for or opposition to the proposed tax rate by contacting the
	1712	+	members of the (name of governing body) of (name of taxing unit) at
	1713	+	their offices or by attending the public meeting mentioned above.
1990	1714		"Your taxes owed under any of the above rates can be
1991	1715		calculated as follows:
1992	1716		"Property tax amount = tax rate x taxable value of your
1993	1717		property / 100
1994	1718		"(Names of all members of the governing body, showing how
1995	1719		each voted on the proposed tax rate or, if one or more were absent,
1996		-	indicating the absences.)
1997		-	"The 86th Texas Legislature modified the manner in which the
1998		-	voter-approval tax rate is calculated to limit the rate of growth of
1999		-	property taxes in the state."
	1720	+	indicating the absences.)"
2000	1721		(c) In addition to including the information described by
2001	1722		Subsection (b), the notice must include the information described
2002	1723		by Section 26.062.
2003	1724		(d) The notice required under this section must be provided
2004	1725		in the manner required under Section 26.06(c).
2005	1726		Sec. 26.062. ADDITIONAL INFORMATION TO BE INCLUDED IN TAX
2006	1727		RATE NOTICE. (a) In addition to the information described by
2007	1728		Section 26.06(b-1), (b-2), or (b-3) or 26.061, as applicable, a
2008	1729		notice required by that provision must include at the end of the
2009	1730		notice:
2010	1731		(1) a statement in the following form:
2011	1732		"The following table compares the taxes imposed on the
2012	1733		average residence homestead by (name of taxing unit) last year to
2013	1734		the taxes proposed to be imposed on the average residence homestead
2014	1735		by (name of taxing unit) this year:";
2015	1736		(2) a table in the form required by this section
2016	1737		following the statement described by Subdivision (1); and
2017	1738		(3) a statement in the following form following the
2018	1739		table:
2019	1740		(A) if the tax assessor for the taxing unit
2020	1741		maintains an Internet website: "For assistance with tax
2021	1742		calculations, please contact the tax assessor for (name of taxing
2022	1743		unit) at (telephone number) or (e-mail address), or visit (Internet
2023	1744		website address) for more information."; or
2024	1745		(B) if the tax assessor for the taxing unit does
2025	1746		not maintain an Internet website: "For assistance with tax
2026	1747		calculations, please contact the tax assessor for (name of taxing
2027	1748		unit) at (telephone number) or (e-mail address)."
2028	1749		(b) The table must contain five rows and four columns.
2029	1750		(c) The first row must appear as follows:
2030	1751		(1) the first column of the first row must be left
2031	1752		blank;
2032	1753		(2) the second column of the first row must state the
2033	1754		year corresponding to the preceding tax year;
2034	1755		(3) the third column of the first row must state the
2035	1756		year corresponding to the current tax year; and
2036	1757		(4) the fourth column of the first row must be entitled
2037	1758		"Change".
2038	1759		(d) The second row must appear as follows:
2039	1760		(1) the first column of the second row must be entitled
2040	1761		"Total tax rate (per $100 of value)";
2041	1762		(2) the second column of the second row must state the
2042	1763		adopted tax rate for the preceding tax year;
2043	1764		(3) the third column of the second row must state the
2044	1765		proposed tax rate for the current tax year; and
2045	1766		(4) the fourth column of the second row must state the
2046	1767		nominal and percentage difference between the adopted tax rate for
2047	1768		the preceding tax year and the proposed tax rate for the current tax
2048	1769		year as follows: "(increase or decrease, as applicable) of
2049	1770		(nominal difference between tax rate stated in second column of
2050	1771		second row and tax rate stated in third column of second row) per
2051	1772		$100, or (percentage difference between tax rate stated in second
2052	1773		column of second row and tax rate stated in third column of second
2053	1774		row)%".
2054	1775		(e) The third row must appear as follows:
2055	1776		(1) the first column of the third row must be entitled
2056	1777		"Average homestead taxable value";
2057	1778		(2) the second column of the third row must state the
2058	1779		average taxable value of a residence homestead in the taxing unit
2059	1780		for the preceding tax year;
2060	1781		(3) the third column of the third row must state the
2061	1782		average taxable value of a residence homestead in the taxing unit
2062	1783		for the current tax year; and
2063	1784		(4) the fourth column of the third row must state the
2064	1785		percentage difference between the average taxable value of a
2065	1786		residence homestead in the taxing unit for the preceding tax year
2066	1787		and the average taxable value of a residence homestead in the taxing
2067	1788		unit for the current tax year as follows: "(increase or decrease,
2068	1789		as applicable) of (percentage difference between amount stated in
2069	1790		second column of third row and amount stated in third column of
2070	1791		third row)%".
2071	1792		(f) The fourth row must appear as follows:
2072	1793		(1) the first column of the fourth row must be entitled
2073	1794		"Tax on average homestead";
2074	1795		(2) the second column of the fourth row must state the
2075	1796		amount of taxes imposed by the taxing unit in the preceding tax year
2076	1797		on a residence homestead with a taxable value equal to the average
2077	1798		taxable value of a residence homestead in the taxing unit in the
2078	1799		preceding tax year;
2079	1800		(3) the third column of the fourth row must state the
2080	1801		amount of taxes that would be imposed by the taxing unit in the
2081	1802		current tax year on a residence homestead with a taxable value equal
2082	1803		to the average taxable value of a residence homestead in the taxing
2083	1804		unit in the current tax year if the taxing unit adopted the proposed
2084	1805		tax rate; and
2085	1806		(4) the fourth column of the fourth row must state the
2086	1807		nominal and percentage difference between the amount of taxes
2087	1808		imposed by the taxing unit in the preceding tax year on a residence
2088	1809		homestead with a taxable value equal to the average taxable value of
2089	1810		a residence homestead in the taxing unit in the preceding tax year
2090	1811		and the amount of taxes that would be imposed by the taxing unit in
2091	1812		the current tax year on a residence homestead with a taxable value
2092	1813		equal to the average taxable value of a residence homestead in the
2093	1814		taxing unit in the current tax year if the taxing unit adopted the
2094	1815		proposed tax rate, as follows: "(increase or decrease, as
2095	1816		applicable) of (nominal difference between amount stated in second
2096	1817		column of fourth row and amount stated in third column of fourth
2097	1818		row), or (percentage difference between amount stated in second
2098	1819		column of fourth row and amount stated in third column of fourth
2099	1820		row)%".
2100	1821		(g) The fifth row must appear as follows:
2101	1822		(1) the first column of the fifth row must be entitled
2102	1823		"Total tax levy on all properties";
2103	1824		(2) the second column of the fifth row must state the
2104	1825		amount equal to last year's levy;
2105	1826		(3) the third column of the fifth row must state the
2106	1827		amount computed by multiplying the proposed tax rate by the current
2107	1828		total value and dividing the product by 100; and
2108	1829		(4) the fourth column of the fifth row must state the
2109	1830		nominal and percentage difference between the total amount of taxes
2110	1831		imposed by the taxing unit in the preceding tax year and the amount
2111	1832		that would be imposed by the taxing unit in the current tax year if
2112	1833		the taxing unit adopted the proposed tax rate, as follows:
2113	1834		"(increase or decrease, as applicable) of (nominal difference
2114	1835		between amount stated in second column of fifth row and amount
2115	1836		stated in third column of fifth row), or (percentage difference
2116	1837		between amount stated in second column of fifth row and amount
2117	1838		stated in third column of fifth row)%".
2118	1839		(h) In calculating the average taxable value of a residence
2119	1840		homestead in the taxing unit for the preceding tax year and the
2120	1841		current tax year for purposes of Subsections (e) and (f), any
2121	1842		residence homestead exemption available only to disabled persons,
2122	1843		persons 65 years of age or older, or their surviving spouses must be
2123	1844		disregarded.
2124		-	Sec. 26.063. ALTERNATE PROVISIONS FOR TAX RATE NOTICE ~~WHEN~~
2125		-	~~DE MINIMIS RATE EXCEEDS VOTER-APPROVAL~~ ~~TAX RATE~~. (a) This section
	1845	+	Sec. 26.063. ALTERNATE PROVISIONS FOR TAX RATE NOTICE OF
	1846	+	TAXING UNIT OTHER THAN SPECIAL TAXING UNIT. (a) This section
2126	1847		applies only to a taxing unit:
2127		-	(1) that is:
2128		-	(A) a taxing unit other than a special taxing
2129		-	unit; or
2130		-	(B) a municipality with a population of less than
2131		-	30,000, regardless of whether it is a special taxing unit;
	1848	+	(1) that is a taxing unit other than a special taxing
	1849	+	unit;
2132	1850		(2) that is required to provide notice under Section
2133	1851		26.06(b-1) or (b-3); and
2134		-	(3) for which the de minimis rate exceeds the
2135		-	voter-approval tax rate.
2136		-	(b) This subsection applies only to a taxing unit that is
2137		-	required to hold an election under Section 26.07. In the notice
2138		-	required to be provided by the taxing unit under Section 26.06(b-1)
2139		-	or (b-3), as applicable, the taxing unit shall:
2140		-	(1) add the following to the end of the list of rates
2141		-	included in the notice:
2142		-	"DE MINIMIS RATE $__________ per $100";
2143		-	(2) substitute the following for the definition of
2144		-	"voter-approval tax rate": "The voter-approval tax rate is the
2145		-	highest tax rate that (name of taxing unit) may adopt without
2146		-	holding an election to seek voter approval of the rate, unless the
2147		-	de minimis rate for (name of taxing unit) exceeds the
2148		-	voter-approval tax rate for (name of taxing unit).";
2149		-	(3) add the following definition of "de minimis rate":
	1852	+	(3) for which the de minimis rate exceeds the rollback
	1853	+	tax rate.
	1854	+	(b) In the notice required to be provided by the taxing unit
	1855	+	under Section 26.06(b-1) or (b-3), as applicable, the taxing unit
	1856	+	shall:
	1857	+	(1) substitute the following for the definition of
	1858	+	"rollback tax rate": "The rollback tax rate is the highest tax rate
	1859	+	that (name of taxing unit) may adopt without holding an election to
	1860	+	ratify the rate, unless the de minimis rate for (insert name of
	1861	+	taxing unit) exceeds the rollback tax rate for (insert name of
	1862	+	taxing unit), in which case the de minimis rate is the highest tax
	1863	+	rate that (name of taxing unit) may adopt without an election.";
	1864	+	(2) add the following definition of "de minimis rate":
2150	1865		"The de minimis rate is the rate equal to the sum of the
2151	1866		no-new-revenue maintenance and operations rate for (name of taxing
2152		-	unit), the rate that will raise ~~$500,000~~, and the ~~current debt rate~~
2153		-	for (name of taxing unit)."; and
2154		-	(4) substitute the following for the provision that
	1867	+	unit), the rate that will raise the de minimis amount, and the
	1868	+	current debt rate for (name of taxing unit)."; and
	1869	+	(3) substitute the following for the provision that
2155	1870		provides notice that an election is required: "The proposed tax
2156		-	rate is greater than the voter-approval tax rate and the de minimis
2157		-	rate. If (name of taxing unit) adopts the proposed tax rate, (name
2158		-	of taxing unit) is required to hold an election so that the voters
2159		-	may accept or reject the proposed tax rate. If a majority of the
2160		-	voters reject the proposed tax rate, the tax rate of the (name of
2161		-	taxing unit) will be the voter-approval tax rate of the (name of
2162		-	taxing unit). The election will be held on (date of election). You
2163		-	may contact the (name of office responsible for administering the
2164		-	election) for information about voting locations. The hours of
2165		-	voting on election day are (voting hours).".
2166		-	(c) This subsection applies only to a taxing unit for which
2167		-	the qualified voters of the taxing unit may petition to hold an
2168		-	election under Section 26.075. In the notice required to be
2169		-	provided by the taxing unit under Section 26.06(b-1) or (b-3), as
2170		-	applicable, the taxing unit shall:
2171		-	(1) add the following to the end of the list of rates
2172		-	included in the notice:
2173		-	"DE MINIMIS RATE $__________ per $100";
2174		-	(2) substitute the following for the definition of
2175		-	"voter-approval tax rate": "The voter-approval tax rate is the
2176		-	highest tax rate that (name of taxing unit) may adopt without
2177		-	holding an election to seek voter approval of the rate, unless the
2178		-	de minimis rate for (name of taxing unit) exceeds the
2179		-	voter-approval tax rate for (name of taxing unit).";
2180		-	(3) add the following definition of "de minimis rate":
2181		-	"The de minimis rate is the rate equal to the sum of the
2182		-	no-new-revenue maintenance and operations rate for (name of taxing
2183		-	unit), the rate that will raise $500,000, and the current debt rate
2184		-	for (name of taxing unit)."; and
2185		-	(4) substitute the following for the provision that
2186		-	provides notice that an election is required: "The proposed tax
2187		-	rate is greater than the voter-approval tax rate but not greater
2188		-	than the de minimis rate. However, the proposed tax rate exceeds
2189		-	the rate that allows voters to petition for an election under
2190		-	Section 26.075, Tax Code. If (name of taxing unit) adopts the
2191		-	proposed tax rate, the qualified voters of the (name of taxing unit)
2192		-	may petition the (name of taxing unit) to require an election to be
2193		-	held to determine whether to reduce the proposed tax rate. If a
2194		-	majority of the voters reject the proposed tax rate, the tax rate of
2195		-	the (name of taxing unit) will be the voter-approval tax rate of the
2196		-	(name of taxing unit).".
2197		-	SECTION 50. Section 26.065(b), Tax Code, is amended to read
	1871	+	rate is greater than the rollback tax rate. If (name of taxing
	1872	+	unit) adopts the proposed tax rate, (name of taxing unit) is
	1873	+	required to hold an election so that the voters may accept or reject
	1874	+	the proposed tax rate unless the de minimis rate exceeds the
	1875	+	rollback tax rate and the proposed tax rate is less than the de
	1876	+	minimis rate. If a majority of the voters reject the proposed tax
	1877	+	rate, the (name of taxing unit) will be required to adopt a new tax
	1878	+	rate that is not greater than the rollback tax rate. The election
	1879	+	will be held on (date of election). You may contact the (name of
	1880	+	office responsible for administering the election) for information
	1881	+	about voting locations. The hours of voting on election day are
	1882	+	(voting hours).".
	1883	+	SECTION 40. Section 26.065(b), Tax Code, is amended to read
2198	1884		as follows:
2199	1885		(b) The [If the] taxing unit [owns, operates, or controls an
2200	1886		Internet website, the unit] shall post notice of the public hearing
2201	1887		prominently on the home page of the Internet website of the taxing
2202	1888		unit continuously for at least seven days immediately before the
2203	1889		public hearing on the proposed tax rate increase and at least seven
2204	1890		days immediately before the date of the vote proposing the increase
2205	1891		in the tax rate.
2206		-	SECTION 51. Section 26.07, Tax Code, is amended to read as
	1892	+	SECTION 41. Section 26.07, Tax Code, is amended to read as
2207	1893		follows:
2208		-	Sec. 26.07. AUTOMATIC ELECTION TO APPROVE TAX RATE OF
2209		-	TAXING UNIT OTHER THAN SCHOOL DISTRICT [REPEAL INCREASE].
2210		-	(a) This section applies to [If the governing body of] a taxing
2211		-	unit other than a school district.
2212		-	(b) If the governing body of a special taxing unit or a
2213		-	municipality with a population of 30,000 or more adopts a tax rate
2214		-	that exceeds the taxing unit's voter-approval [rollback] tax rate
2215		-	[calculated as provided by this chapter], or the governing body of a
2216		-	taxing unit other than a special taxing unit or a municipality with
2217		-	a population of less than 30,000 regardless of whether it is a
2218		-	special taxing unit adopts a tax rate that exceeds the greater of
2219		-	the taxing unit's voter-approval tax rate or de minimis rate, the
2220		-	registered [qualified] voters of the taxing unit at an election
2221		-	held for that purpose must determine whether to approve the adopted
2222		-	tax rate. When increased expenditure of money by a taxing unit is
2223		-	necessary to respond to a disaster, including a tornado, hurricane,
2224		-	flood, wildfire, or other calamity, but not including a drought,
2225		-	that has impacted the taxing unit and the governor has declared any
2226		-	part of the area in which the taxing unit is located as a disaster
2227		-	area, an election is not required under this section to approve the
2228		-	tax rate adopted by the governing body for the year following the
2229		-	year in which the disaster occurs [by petition may require that an
2230		-	election be held to determine whether or not to reduce the tax rate
2231		-	adopted for the current year to the rollback tax rate calculated as
2232		-	provided by this chapter].
	1894	+	Sec. 26.07. ELECTION TO APPROVE TAX RATE OF TAXING UNIT
	1895	+	OTHER THAN SCHOOL DISTRICT [REPEAL INCREASE]. (a) This section
	1896	+	applies to [If the governing body of] a taxing unit other than a
	1897	+	school district.
	1898	+	(b) If the governing body of a special taxing unit adopts a
	1899	+	tax rate that exceeds the taxing unit's rollback tax rate or the
	1900	+	governing body of a taxing unit other than a special taxing unit
	1901	+	adopts a tax rate that exceeds the greater of the taxing unit's
	1902	+	rollback tax rate or de minimis rate [calculated as provided by this
	1903	+	chapter], the registered [qualified] voters of the taxing unit at
	1904	+	an election held for that purpose must determine whether to approve
	1905	+	the adopted tax rate. When increased expenditure of money by a
	1906	+	taxing unit is necessary to respond to a disaster, including a
	1907	+	tornado, hurricane, flood, or other calamity, but not including a
	1908	+	drought, that has impacted the taxing unit and the governor has
	1909	+	declared any part of the area in which the taxing unit is located as
	1910	+	a disaster area, an election is not required under this section to
	1911	+	approve the tax rate adopted by the governing body for the year
	1912	+	following the year in which the disaster occurs [by petition may
	1913	+	require that an election be held to determine whether or not to
	1914	+	reduce the tax rate adopted for the current year to the rollback tax
	1915	+	rate calculated as provided by this chapter].
2233	1916		[(b) A petition is valid only if:
2234	1917		[(1) it states that it is intended to require an
2235	1918		election in the taxing unit on the question of reducing the tax rate
2236	1919		for the current year;
2237	1920		[(2) it is signed by a number of registered voters of
2238	1921		the taxing unit equal to at least:
2239	1922		[(A) seven percent of the number of registered
2240	1923		voters of the taxing unit according to the most recent list of
2241	1924		registered voters if the tax rate adopted for the current tax year
2242	1925		would impose taxes for maintenance and operations in an amount of at
2243	1926		least $5 million; or
2244	1927		[(B) 10 percent of the number of registered
2245	1928		voters of the taxing unit according to the most recent official list
2246	1929		of registered voters if the tax rate adopted for the current tax
2247	1930		year would impose taxes for maintenance and operations in an amount
2248	1931		of less than $5 million; and
2249	1932		[(3) it is submitted to the governing body on or before
2250	1933		the 90th day after the date on which the governing body adopted the
2251	1934		tax rate for the current year.]
2252	1935		(c) The governing body [Not later than the 20th day after
2253	1936		the day a petition is submitted, the governing body shall determine
2254	1937		whether or not the petition is valid and pass a resolution stating
2255	1938		its finding. If the governing body fails to act within the time
2256	1939		allowed, the petition is treated as if it had been found valid.
2257	1940		[(d) If the governing body finds that the petition is valid
2258	1941		(or fails to act within the time allowed), it] shall order that the
2259	1942		[an] election be held in the taxing unit on the uniform election
2260	1943		date prescribed by Section 41.001, Election Code, that occurs in
2261	1944		November of the applicable tax year. The order calling the election
2262		-	may not be issued later than the 71st day before the date of the
2263		-	election [a date not less than 30 or more than 90 days after the last
2264		-	day on which it could have acted to approve or disapprove the
2265		-	petition. A state law requiring local elections to be held on a
2266		-	specified date does not apply to the election unless a specified
2267		-	date falls within the time permitted by this section]. At the
2268		-	election, the ballots shall be prepared to permit voting for or
2269		-	against the proposition: "Approving the ad valorem tax rate of
2270		-	$_____ per $100 valuation in (name of taxing unit) for the current
2271		-	year, a rate that is $_____ higher per $100 valuation than the
2272		-	voter-approval tax rate of (name of taxing unit), for the purpose of
2273		-	(description of purpose of increase). Last year, the ad valorem tax
2274		-	rate in (name of taxing unit) was $__________ per $100 valuation
2275		-	["Reducing the tax rate in (name of taxing unit) for the current
2276		-	year from (the rate adopted) to (the rollback tax rate calculated as
2277		-	provided by this chapter)]." The ballot proposition must include
2278		-	the adopted tax rate, the difference between the adopted tax rate
2279		-	and the voter-approval tax rate, and the taxing unit's tax rate for
2280		-	the preceding tax year in the appropriate places.
	1945	+	may not be issued later than August 15 [a date not less than 30 or
	1946	+	more than 90 days after the last day on which it could have acted to
	1947	+	approve or disapprove the petition. A state law requiring local
	1948	+	elections to be held on a specified date does not apply to the
	1949	+	election unless a specified date falls within the time permitted by
	1950	+	this section]. At the election, the ballots shall be prepared to
	1951	+	permit voting for or against the proposition: "Approving the ad
	1952	+	valorem tax rate of $_____ per $100 valuation in (name of taxing
	1953	+	unit) for the current year, a rate that is $_____ higher per $100
	1954	+	valuation than the rollback tax rate of (name of taxing unit), for
	1955	+	the purpose of (description of purpose of increase) ["Reducing the
	1956	+	tax rate in (name of taxing unit) for the current year from (the
	1957	+	rate adopted) to (the rollback tax rate calculated as provided by
	1958	+	this chapter)]." The ballot proposition must include the adopted
	1959	+	tax rate and the difference between that rate and the rollback tax
	1960	+	rate in the appropriate places.
2281	1961		(d) [(e)] If a majority of the votes cast [qualified voters
2282	1962		voting on the question] in the election favor the proposition, the
2283	1963		tax rate for the [taxing unit for the] current year is the [rollback
2284	1964		tax] rate that was adopted by the governing body [calculated as
2285	1965		provided by this chapter; otherwise, the tax rate for the current
2286	1966		year is the one adopted by the governing body].
2287	1967		(e) If the proposition is not approved as provided by
2288		-	Subsection (d), the taxing unit's tax rate for the current tax year
2289		-	is the taxing unit's voter-approval tax rate.
	1968	+	Subsection (d), the governing body may not adopt a tax rate for the
	1969	+	taxing unit for the current year that exceeds the taxing unit's
	1970	+	rollback tax rate.
2290	1971		(f) If, [the tax rate is reduced by an election called under
2291	1972		this section] after tax bills for the taxing unit have been [are]
2292	1973		mailed, a proposition to approve the taxing unit's adopted tax rate
2293	1974		is not approved by the voters of the taxing unit at an election held
2294		-	under this section, the assessor for the taxing unit shall prepare
2295		-	and mail corrected tax bills. The assessor [He] shall include with
2296		-	the bill a brief explanation of the reason for and effect of the
2297		-	corrected bill. [The date on which the taxes become delinquent for
2298		-	the year is extended by a number of days equal to the number of days
2299		-	between the date the first tax bills were sent and the date the
2300		-	corrected tax bills were sent.]
	1975	+	under this section, on subsequent adoption of a new tax rate by the
	1976	+	governing body of the taxing unit, the assessor for the taxing unit
	1977	+	shall prepare and mail corrected tax bills. The assessor [He] shall
	1978	+	include with the bill a brief explanation of the reason for and
	1979	+	effect of the corrected bill. The date on which the taxes become
	1980	+	delinquent for the year is extended by a number of days equal to the
	1981	+	number of days between the date the first tax bills were sent and
	1982	+	the date the corrected tax bills were sent.
2301	1983		(g) If a property owner pays taxes calculated using the
2302	1984		originally adopted [higher] tax rate of the taxing unit and the
2303	1985		proposition to approve the adopted tax rate is not approved by
2304	1986		voters [when the rate is reduced by an election called under this
2305	1987		section], the taxing unit shall refund the difference between the
2306		-	amount of taxes paid and the amount due under the ~~voter-approval tax~~
2307		-	[reduced] rate if the difference between the amount of ~~taxes paid~~
2308		-	and the amount due under the ~~voter-approval tax~~ [reduced] rate is $1
2309		-	or more. If the difference between the amount of taxes paid and ~~the~~
2310		-	amount due under the ~~voter-approval tax~~ [reduced] rate is less than
2311		-	~~$1,~~ the taxing unit shall refund the difference on request of the
	1988	+	amount of taxes paid and the amount due under the subsequently
	1989	+	adopted [reduced] rate if the difference between the amount of
	1990	+	taxes paid and the amount due under the subsequent [reduced] rate is
	1991	+	$1 or more. If the difference between the amount of taxes paid and
	1992	+	the amount due under the subsequent [reduced] rate is less than $1,
	1993	+	the taxing unit shall refund the difference on request of the
2312	1994		taxpayer. An application for a refund of less than $1 must be made
2313	1995		within 90 days after the date the refund becomes due or the taxpayer
2314	1996		forfeits the right to the refund.
2315		-	SECTION 52. Chapter 26, Tax Code, is amended by adding
2316		-	Section 26.075 to read as follows:
2317		-	Sec. 26.075. PETITION ELECTION TO REDUCE TAX RATE OF TAXING
2318		-	UNIT OTHER THAN SCHOOL DISTRICT. (a) This section applies only to
2319		-	a taxing unit other than:
2320		-	(1) a special taxing unit;
2321		-	(2) a school district; or
2322		-	(3) a municipality with a population of 30,000 or
2323		-	more.
2324		-	(b) This section applies to a taxing unit only in a tax year
2325		-	in which the taxing unit's:
2326		-	(1) de minimis rate exceeds the taxing unit's
2327		-	voter-approval tax rate; and
2328		-	(2) adopted tax rate is:
2329		-	(A) equal to or lower than the taxing unit's de
2330		-	minimis rate; and
2331		-	(B) greater than the greater of the taxing
2332		-	unit's:
2333		-	(i) voter-approval tax rate calculated as
2334		-	if the taxing unit were a special taxing unit; or
2335		-	(ii) voter-approval tax rate.
2336		-	(c) The qualified voters of a taxing unit by petition may
2337		-	require that an election be held to determine whether to reduce the
2338		-	tax rate adopted by the governing body of the taxing unit for the
2339		-	current tax year to the voter-approval tax rate.
2340		-	(d) A petition is valid only if the petition:
2341		-	(1) states that it is intended to require an election
2342		-	in the taxing unit on the question of reducing the taxing unit's
2343		-	adopted tax rate for the current tax year;
2344		-	(2) is signed by a number of registered voters of the
2345		-	taxing unit equal to at least three percent of the registered voters
2346		-	of the taxing unit determined according to the most recent list of
2347		-	those voters; and
2348		-	(3) is submitted to the governing body of the taxing
2349		-	unit not later than the 90th day after the date on which the
2350		-	governing body adopts the tax rate for the current tax year.
2351		-	(e) Not later than the 20th day after the date on which a
2352		-	petition is submitted, the governing body shall determine whether
2353		-	the petition is valid and must by resolution state the governing
2354		-	body's determination. If the governing body fails to make the
2355		-	determination in the time and manner required by this subsection,
2356		-	the petition is considered to be valid for the purposes of this
2357		-	section.
2358		-	(f) If the governing body determines that the petition is
2359		-	valid or fails to make the determination in the time and manner
2360		-	required by Subsection (e), the governing body shall order that an
2361		-	election be held in the taxing unit on the next uniform election
2362		-	date that allows sufficient time to comply with the requirements of
2363		-	other law.
2364		-	(g) At the election, the ballots shall be prepared to permit
2365		-	voting for or against the proposition: "Reducing the tax rate in
2366		-	(name of taxing unit) for the current year from (insert tax rate
2367		-	adopted for current year) to (insert voter-approval tax rate)."
2368		-	(h) If a majority of the votes cast in the election favor the
2369		-	proposition, the tax rate for the current tax year is the
2370		-	voter-approval tax rate.
2371		-	(i) If the proposition is not approved as provided by
2372		-	Subsection (h), the tax rate for the taxing unit for the current tax
2373		-	year is the tax rate adopted by the governing body of the taxing
2374		-	unit for the current tax year.
2375		-	(j) If the tax rate is reduced by an election held under this
2376		-	section after tax bills for the taxing unit have been mailed, the
2377		-	assessor for the taxing unit shall prepare and mail corrected tax
2378		-	bills. The assessor shall include with the bill a brief explanation
2379		-	of the reason for and effect of the corrected bill. The date on
2380		-	which the taxes become delinquent for the tax year is extended by a
2381		-	number of days equal to the number of days between the date the
2382		-	first tax bills were sent and the date the corrected tax bills were
2383		-	sent.
2384		-	(k) If a property owner pays taxes calculated using the
2385		-	higher tax rate when the tax rate is reduced by an election held
2386		-	under this section, the taxing unit shall refund the difference
2387		-	between the amount of taxes paid and the amount due under the
2388		-	reduced tax rate if the difference between the amount of taxes paid
2389		-	and the amount due under the reduced tax rate is $1 or more. If the
2390		-	difference between the amount of taxes paid and the amount due under
2391		-	the reduced rate is less than $1, the taxing unit shall refund the
2392		-	difference on request of the taxpayer. An application for a refund
2393		-	of less than $1 must be made within 90 days after the date the refund
2394		-	becomes due or the taxpayer forfeits the right to the refund.
2395		-	(l) Except as otherwise expressly provided by law, this
2396		-	section does not apply to a tax imposed by a taxing unit if a
2397		-	provision of an uncodified local or special law enacted by the 86th
2398		-	Legislature, Regular Session, 2019, or by an earlier legislature
2399		-	provides that Section 26.07 does not apply to a tax imposed by the
2400		-	taxing unit.
2401		-	SECTION 53. The heading to Section 26.08, Tax Code, is
2402		-	amended to read as follows:
2403		-	Sec. 26.08. AUTOMATIC ELECTION TO APPROVE TAX RATE OF
2404		-	[RATIFY] SCHOOL DISTRICT [TAXES].
2405		-	SECTION 54. Section 26.08(a), Tax Code, is amended to read
	1997	+	SECTION 42. Section 26.08(n), Tax Code, is amended to read
2406	1998		as follows:
2407		-	(a) If the governing body of a school district adopts a tax
2408		-	rate that exceeds the district's rollback tax rate, the registered
2409		-	voters of the district at an election held for that purpose must
2410		-	determine whether to approve the adopted tax rate. When increased
2411		-	expenditure of money by a school district is necessary to respond to
2412		-	a disaster, including a tornado, hurricane, flood, wildfire, or
2413		-	other calamity, but not including a drought, that has impacted a
2414		-	school district and the governor has requested federal disaster
2415		-	assistance for the area in which the school district is located, an
2416		-	election is not required under this section to approve the tax rate
2417		-	adopted by the governing body for the year following the year in
2418		-	which the disaster occurs.
2419		-	SECTION 55. The heading to Section 26.16, Tax Code, is
	1999	+	(n) For purposes of this section, the rollback tax rate of a
	2000	+	school district [whose maintenance and operations tax rate for the
	2001	+	2005 tax year was $1.50 or less per $100 of taxable value] is the sum
	2002	+	of the following:
	2003	+	(1) the rate per $100 of taxable value that is equal to
	2004	+	the product of the no-new-revenue maintenance and operations tax
	2005	+	rate of the district as computed under Subsection (i) and 1.02 [for
	2006	+	the 2006 tax year, the sum of the rate that is equal to 88.67 percent
	2007	+	of the maintenance and operations tax rate adopted by the district
	2008	+	for the 2005 tax year, the rate of $0.04 per $100 of taxable value,
	2009	+	and the district's current debt rate]; and
	2010	+	(2) [for the 2007 and subsequent tax years, the lesser
	2011	+	of the following:
	2012	+	[(A) the sum of the following:
	2013	+	[(i) the rate per $100 of taxable value that
	2014	+	is equal to the product of the state compression percentage, as
	2015	+	determined under Section 42.2516, Education Code, for the current
	2016	+	year and $1.50;
	2017	+	[(ii) the rate of $0.04 per $100 of taxable
	2018	+	value;
	2019	+	[(iii) the rate that is equal to the sum of
	2020	+	the differences for the 2006 and each subsequent tax year between
	2021	+	the adopted tax rate of the district for that year if the rate was
	2022	+	approved at an election under this section and the rollback tax rate
	2023	+	of the district for that year; and
	2024	+	[(iv) the district's current debt rate; or
	2025	+	[(B) the sum of the following:
	2026	+	[(i) the effective maintenance and
	2027	+	operations tax rate of the district as computed under Subsection
	2028	+	(i) or (k), as applicable;
	2029	+	[(ii) the rate per $100 of taxable value
	2030	+	that is equal to the product of the state compression percentage, as
	2031	+	determined under Section 42.2516, Education Code, for the current
	2032	+	year and $0.06; and
	2033	+	[(iii)] the district's current debt rate.
	2034	+	SECTION 43. The heading to Section 26.16, Tax Code, is
2420	2035		amended to read as follows:
2421	2036		Sec. 26.16. POSTING OF TAX-RELATED INFORMATION [TAX RATES]
2422	2037		ON COUNTY'S INTERNET WEBSITE.
2423		-	SECTION 56. Section 26.16, Tax Code, is amended by amending
	2038	+	SECTION 44. Section 26.16, Tax Code, is amended by amending
2424	2039		Subsections (a) and (d) and adding Subsections (a-1), (d-1), and
2425	2040		(d-2) to read as follows:
2426	2041		(a) Each county shall maintain an Internet website. The
2427	2042		county assessor-collector for each county [that maintains an
2428	2043		Internet website] shall post on the Internet website maintained by
2429	2044		[of] the county the following information for the most recent five
2430	2045		tax years [beginning with the 2012 tax year] for each taxing unit
2431	2046		all or part of the territory of which is located in the county:
2432	2047		(1) the adopted tax rate;
2433	2048		(2) the maintenance and operations rate;
2434	2049		(3) the debt rate;
2435	2050		(4) the no-new-revenue [effective] tax rate;
2436	2051		(5) the no-new-revenue [effective] maintenance and
2437	2052		operations rate; and
2438		-	(6) the ~~voter-approval [~~rollback] tax rate.
	2053	+	(6) the rollback tax rate.
2439	2054		(a-1) For purposes of Subsection (a), a reference to the
2440	2055		no-new-revenue tax rate or the no-new-revenue maintenance and
2441	2056		operations rate includes the equivalent effective tax rate or
2442	2057		effective maintenance and operations rate for a preceding year.
2443	2058		This subsection expires January 1, 2026.
2444	2059		(d) The county assessor-collector shall post immediately
2445	2060		below the table prescribed by Subsection (c) the following
2446	2061		statement:
2447	2062		"The county is providing this table of property tax rate
2448	2063		information as a service to the residents of the county. Each
2449	2064		individual taxing unit is responsible for calculating the property
2450	2065		tax rates listed in this table pertaining to that taxing unit and
2451	2066		providing that information to the county.
2452	2067		"The adopted tax rate is the tax rate adopted by the governing
2453	2068		body of a taxing unit.
2454	2069		"The maintenance and operations rate is the component of the
2455	2070		adopted tax rate of a taxing unit that will impose the amount of
2456	2071		taxes needed to fund maintenance and operation expenditures of the
2457	2072		taxing unit for the following year.
2458	2073		"The debt rate is the component of the adopted tax rate of a
2459	2074		taxing unit that will impose the amount of taxes needed to fund the
2460	2075		taxing unit's debt service for the following year.
2461	2076		"The no-new-revenue [effective] tax rate is the tax rate that
2462	2077		would generate the same amount of revenue in the current tax year as
2463	2078		was generated by a taxing unit's adopted tax rate in the preceding
2464	2079		tax year from property that is taxable in both the current tax year
2465	2080		and the preceding tax year.
2466	2081		"The no-new-revenue [effective] maintenance and operations
2467	2082		rate is the tax rate that would generate the same amount of revenue
2468	2083		for maintenance and operations in the current tax year as was
2469	2084		generated by a taxing unit's maintenance and operations rate in the
2470	2085		preceding tax year from property that is taxable in both the current
2471	2086		tax year and the preceding tax year.
2472		-	"The voter-approval [rollback] tax rate is the highest tax
2473		-	rate a taxing unit may adopt before requiring voter approval at an
2474		-	election. An [In the case of a taxing unit other than a school
2475		-	district, the voters by petition may require that a rollback
2476		-	election be held if the unit adopts a tax rate in excess of the
2477		-	unit's rollback tax rate. In the case of a school district, an]
2478		-	election will automatically be held if a taxing unit [the district]
2479		-	wishes to adopt a tax rate in excess of the taxing unit's
2480		-	voter-approval [district's rollback] tax rate."
	2087	+	"The rollback tax rate is the highest tax rate a taxing unit
	2088	+	may adopt before requiring voter approval at an election. An [In
	2089	+	the case of a taxing unit other than a school district, the voters
	2090	+	by petition may require that a rollback election be held if the unit
	2091	+	adopts a tax rate in excess of the unit's rollback tax rate. In the
	2092	+	case of a school district, an] election will automatically be held
	2093	+	if a taxing unit [the district] wishes to adopt a tax rate in excess
	2094	+	of the taxing unit's [district's] rollback tax rate."
2481	2095		(d-1) In addition to posting the information described by
2482	2096		Subsection (a), the county assessor-collector shall post on the
2483	2097		Internet website of the county for each taxing unit all or part of
2484	2098		the territory of which is located in the county:
2485	2099		(1) the tax rate calculation forms used by the
2486	2100		designated officer or employee of each taxing unit to calculate the
2487		-	no-new-revenue and ~~voter-approval~~ tax rates of the taxing unit for
2488		-	~~the~~ most recent five tax years beginning with the 2020 tax year, as
	2101	+	no-new-revenue and rollback tax rates of the taxing unit for the
	2102	+	most recent five tax years beginning with the 2020 tax year, as
2489	2103		certified by the designated officer or employee under Section
2490	2104		26.04(d-2); and
2491	2105		(2) the name and official contact information for each
2492	2106		member of the governing body of the taxing unit.
2493		-	(d-2) By August ~~7 or as soon thereafter as practicable~~, the
2494		-	~~county~~ assessor-collector shall post on the website the tax rate
	2107	+	(d-2) Not later than August 1, the county
	2108	+	assessor-collector shall post on the website the tax rate
2495	2109		calculation forms described by Subsection (d-1)(1) for the current
2496	2110		tax year.
2497		-	SECTION 57. Chapter 26, Tax Code, is amended by adding
	2111	+	SECTION 45. Chapter 26, Tax Code, is amended by adding
2498	2112		Sections 26.17 and 26.18 to read as follows:
2499	2113		Sec. 26.17. DATABASE OF PROPERTY-TAX-RELATED INFORMATION.
2500		-	(a) The chief appraiser of each appraisal district shall create
2501		-	~~and~~ maintain a property tax database that:
	2114	+	(a) The chief appraiser of each appraisal district shall create and
	2115	+	maintain a property tax database that:
2502	2116		(1) is identified by the name of the county in which
2503	2117		the appraisal district is established instead of the name of the
2504	2118		appraisal district;
2505	2119		(2) contains information that is provided by
2506	2120		designated officers or employees of the taxing units that are
2507	2121		located in the appraisal district in the manner required by the
2508	2122		comptroller;
2509	2123		(3) is continuously updated as preliminary and revised
2510	2124		data become available to and are provided by the designated
2511	2125		officers or employees of taxing units;
2512		-	(4) is accessible to the public;
	2126	+	(4) is accessible to the public; and
2513	2127		(5) is searchable by property address and owner,
2514	2128		except to the extent that access to the information in the database
2515		-	is restricted by Section 25.025 or 25.026; and
2516		-	(6) includes the following statement: "The 86th Texas
2517		-	Legislature modified the manner in which the voter-approval tax
2518		-	rate is calculated to limit the rate of growth of property taxes in
2519		-	the state.".
	2129	+	is restricted by Section 25.025 or 25.026.
2520	2130		(b) The database must include, with respect to each property
2521	2131		listed on the appraisal roll for the appraisal district:
2522	2132		(1) the property's identification number;
2523	2133		(2) the property's market value;
2524	2134		(3) the property's taxable value;
2525	2135		(4) the name of each taxing unit in which the property
2526	2136		is located;
2527	2137		(5) for each taxing unit other than a school district
2528	2138		in which the property is located:
2529	2139		(A) the no-new-revenue tax rate; and
2530		-	(B) the ~~voter-approval~~ tax rate;
	2140	+	(B) the rollback tax rate;
2531	2141		(6) for each school district in which the property is
2532	2142		located:
2533	2143		(A) the tax rate that would maintain the same
2534	2144		amount of state and local revenue per weighted student that the
2535	2145		district received in the school year beginning in the preceding tax
2536	2146		year; and
2537		-	(B) the ~~voter-approval~~ tax rate;
	2147	+	(B) the rollback tax rate;
2538	2148		(7) the tax rate proposed by the governing body of each
2539	2149		taxing unit in which the property is located;
2540	2150		(8) for each taxing unit other than a school district
2541	2151		in which the property is located, the taxes that would be imposed on
2542	2152		the property if the taxing unit adopted a tax rate equal to:
2543	2153		(A) the no-new-revenue tax rate; and
2544	2154		(B) the proposed tax rate;
2545	2155		(9) for each school district in which the property is
2546	2156		located, the taxes that would be imposed on the property if the
2547	2157		district adopted a tax rate equal to:
2548	2158		(A) the tax rate that would maintain the same
2549	2159		amount of state and local revenue per weighted student that the
2550	2160		district received in the school year beginning in the preceding tax
2551	2161		year; and
2552	2162		(B) the proposed tax rate;
2553	2163		(10) for each taxing unit other than a school district
2554	2164		in which the property is located, the difference between the amount
2555	2165		calculated under Subdivision (8)(A) and the amount calculated under
2556	2166		Subdivision (8)(B);
2557	2167		(11) for each school district in which the property is
2558	2168		located, the difference between the amount calculated under
2559	2169		Subdivision (9)(A) and the amount calculated under Subdivision
2560	2170		(9)(B);
2561	2171		(12) the date, time, and location of the public
2562	2172		hearing, if applicable, on the proposed tax rate to be held by the
2563	2173		governing body of each taxing unit in which the property is located;
2564	2174		(13) the date, time, and location of the public
2565	2175		meeting, if applicable, at which the tax rate will be adopted to be
2566	2176		held by the governing body of each taxing unit in which the property
2567	2177		is located; and
2568	2178		(14) for each taxing unit in which the property is
2569	2179		located, an e-mail address at which the taxing unit is capable of
2570	2180		receiving written comments regarding the proposed tax rate of the
2571	2181		taxing unit.
2572	2182		(c) The database must provide a link to the Internet website
2573	2183		used by each taxing unit in which the property is located to post
2574	2184		the information described by Section 26.18.
2575	2185		(d) The database must allow the property owner to
2576	2186		electronically complete and submit to a taxing unit in which the
2577	2187		owner's property is located a form on which the owner may provide
2578	2188		the owner's opinion as to whether the tax rate proposed by the
2579	2189		governing body of the taxing unit should be adopted. The form must
2580	2190		require the owner to provide the owner's name and contact
2581	2191		information and the physical address of the owner's property
2582	2192		located in the taxing unit. The database must allow a property
2583	2193		owner to complete and submit the form at any time during the period
2584	2194		beginning on the date the governing body of the taxing unit proposes
2585	2195		the tax rate for that tax year and ending on the date the governing
2586	2196		body adopts a tax rate for that tax year.
2587	2197		(e) The officer or employee designated by the governing body
2588	2198		of each taxing unit in which the property is located to calculate
2589		-	the no-new-revenue tax rate and the ~~voter-approval~~ tax rate for the
2590		-	~~taxing~~ unit must electronically incorporate into the database:
	2199	+	the no-new-revenue tax rate and the rollback tax rate for the taxing
	2200	+	unit must electronically incorporate into the database:
2591	2201		(1) the information described by Subsections (b)(5),
2592	2202		(6), (7), (12), and (13), as applicable, as the information becomes
2593	2203		available; and
2594	2204		(2) the tax rate calculation forms prepared under
2595	2205		Section 26.04(d-1) at the same time the designated officer or
2596	2206		employee submits the tax rates to the governing body of the taxing
2597	2207		unit under Section 26.04(e).
2598	2208		(f) The chief appraiser shall make the information
2599	2209		described by Subsection (e)(1) and the tax rate calculation forms
2600	2210		described by Subsection (e)(2) available to the public not later
2601	2211		than the third business day after the date the information and forms
2602	2212		are incorporated into the database.
2603	2213		Sec. 26.18. POSTING OF TAX RATE AND BUDGET INFORMATION BY
2604	2214		TAXING UNIT ON WEBSITE. Each taxing unit shall maintain an Internet
2605	2215		website or have access to a generally accessible Internet website
2606	2216		that may be used for the purposes of this section. Each taxing unit
2607	2217		shall post or cause to be posted on the Internet website the
2608	2218		following information in a format prescribed by the comptroller:
2609	2219		(1) the name of each member of the governing body of
2610	2220		the taxing unit;
2611	2221		(2) the mailing address, e-mail address, and telephone
2612	2222		number of the taxing unit;
2613	2223		(3) the official contact information for each member
2614	2224		of the governing body of the taxing unit, if that information is
2615	2225		different from the information described by Subdivision (2);
2616	2226		(4) the taxing unit's budget for the preceding two
2617	2227		years;
2618	2228		(5) the taxing unit's proposed or adopted budget for
2619	2229		the current year;
2620	2230		(6) the change in the amount of the taxing unit's
2621	2231		budget from the preceding year to the current year, by dollar amount
2622	2232		and percentage;
2623	2233		(7) in the case of a taxing unit other than a school
2624	2234		district, the amount of property tax revenue budgeted for
2625	2235		maintenance and operations for:
2626	2236		(A) the preceding two years; and
2627	2237		(B) the current year;
2628	2238		(8) in the case of a taxing unit other than a school
2629	2239		district, the amount of property tax revenue budgeted for debt
2630	2240		service for:
2631	2241		(A) the preceding two years; and
2632	2242		(B) the current year;
2633	2243		(9) the tax rate for maintenance and operations
2634	2244		adopted by the taxing unit for the preceding two years;
2635	2245		(10) in the case of a taxing unit other than a school
2636	2246		district, the tax rate for debt service adopted by the taxing unit
2637	2247		for the preceding two years;
2638	2248		(11) in the case of a school district, the interest and
2639	2249		sinking fund tax rate adopted by the district for the preceding two
2640	2250		years;
2641	2251		(12) the tax rate for maintenance and operations
2642	2252		proposed by the taxing unit for the current year;
2643	2253		(13) in the case of a taxing unit other than a school
2644	2254		district, the tax rate for debt service proposed by the taxing unit
2645	2255		for the current year;
2646	2256		(14) in the case of a school district, the interest and
2647	2257		sinking fund tax rate proposed by the district for the current year;
2648	2258		and
2649	2259		(15) the most recent financial audit of the taxing
2650	2260		unit.
2651		-	SECTION 58. Sections 31.12(a) and (b), Tax Code, are
2652		-	amended to read as follows:
2653		-	(a) If a refund of a tax provided by Section 11.431(b),
2654		-	26.07(g), 26.075(k), 26.15(f), 31.11, 31.111, or 31.112 is paid on
2655		-	or before the 60th day after the date the liability for the refund
2656		-	arises, no interest is due on the amount refunded. If not paid on
2657		-	or before that 60th day, the amount of the tax to be refunded
2658		-	accrues interest at a rate of one percent for each month or part of a
2659		-	month that the refund is unpaid, beginning with the date on which
2660		-	the liability for the refund arises.
	2261	+	SECTION 46. Section 31.12(b), Tax Code, is amended to read
	2262	+	as follows:
2661	2263		(b) For purposes of this section, liability for a refund
2662	2264		arises:
2663	2265		(1) if the refund is required by Section 11.431(b), on
2664	2266		the date the chief appraiser notifies the collector for the taxing
2665	2267		unit of the approval of the late homestead exemption;
2666		-	(2) if the refund is required by Section 26.07(g) or
2667		-	~~26.075(k), on~~ the date the results of the election ~~to approve or~~
2668		-	reduce the tax rate~~, as applicable,~~ are certified;
	2268	+	(2) if the refund is required by Section 26.07(g), on
	2269	+	the date the subsequent tax rate is adopted [results of the election
	2270	+	to reduce the tax rate are certified];
2669	2271		(3) if the refund is required by Section 26.15(f):
2670	2272		(A) for a correction to the tax roll made under
2671	2273		Section 26.15(b), on the date the change in the tax roll is
2672	2274		certified to the assessor for the taxing unit under Section 25.25;
2673	2275		or
2674	2276		(B) for a correction to the tax roll made under
2675	2277		Section 26.15(c), on the date the change in the tax roll is ordered
2676	2278		by the governing body of the taxing unit;
2677	2279		(4) if the refund is required by Section 31.11, on the
2678	2280		date the auditor for the taxing unit determines that the payment was
2679	2281		erroneous or excessive or, if the amount of the refund exceeds the
2680	2282		applicable amount specified by Section 31.11(a), on the date the
2681	2283		governing body of the taxing unit approves the refund;
2682	2284		(5) if the refund is required by Section 31.111, on the
2683	2285		date the collector for the taxing unit determines that the payment
2684	2286		was erroneous; or
2685	2287		(6) if the refund is required by Section 31.112, on the
2686	2288		date required by Section 31.112(d) or (e), as applicable.
2687		-	SECTION 59. Section 33.08(b), Tax Code, is amended to read
2688		-	as follows:
2689		-	(b) The governing body of the taxing unit or appraisal
2690		-	district, in the manner required by law for official action, may
2691		-	provide that taxes that become delinquent on or after June 1 under
2692		-	Section 26.075(j) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
2693		-	31.04, or 42.42 incur an additional penalty to defray costs of
2694		-	collection. The amount of the penalty may not exceed the amount of
2695		-	the compensation specified in the applicable contract with an
2696		-	attorney under Section 6.30 to be paid in connection with the
2697		-	collection of the delinquent taxes.
2698		-	SECTION 60. Section 41.03(a), Tax Code, is amended to read
	2289	+	SECTION 47. Section 41.03(a), Tax Code, is amended to read
2699	2290		as follows:
2700	2291		(a) A taxing unit is entitled to challenge before the
2701	2292		appraisal review board:
2702	2293		(1) [the level of appraisals of any category of
2703	2294		property in the district or in any territory in the district, but
2704	2295		not the appraised value of a single taxpayer's property;
2705	2296		[(2)] an exclusion of property from the appraisal
2706	2297		records;
2707	2298		(2) [(3)] a grant in whole or in part of a partial
2708	2299		exemption;
2709	2300		(3) [(4)] a determination that land qualifies for
2710	2301		appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or
2711	2302		(4) [(5)] failure to identify the taxing unit as one
2712	2303		in which a particular property is taxable.
2713		-	SECTION 61. Section 41.44(d), Tax Code, is amended to read
	2304	+	SECTION 48. Section 41.44(d), Tax Code, is amended to read
2714	2305		as follows:
2715	2306		(d) A notice of protest is sufficient if it identifies the
2716	2307		protesting property owner, including a person claiming an ownership
2717	2308		interest in the property even if that person is not listed on the
2718	2309		appraisal records as an owner of the property, identifies the
2719	2310		property that is the subject of the protest, and indicates apparent
2720	2311		dissatisfaction with some determination of the appraisal office.
2721	2312		The notice need not be on an official form, but the comptroller
2722	2313		shall prescribe a form that provides for more detail about the
2723	2314		nature of the protest. The form must permit a property owner to
2724	2315		include each property in the appraisal district that is the subject
2725	2316		of a protest. The form must permit a property owner to request that
2726	2317		the protest be heard by a special panel established under Section
2727	2318		6.425 if the protest will be determined by an appraisal review board
2728	2319		to which that section applies and the property is included in a
2729	2320		classification described by Section 6.425(b). The comptroller,
2730	2321		each appraisal office, and each appraisal review board shall make
2731	2322		the forms readily available and deliver one to a property owner on
2732	2323		request.
2733		-	SECTION 62. Section 41.45, Tax Code, is amended by amending
	2324	+	SECTION 49. Section 41.45, Tax Code, is amended by amending
2734	2325		Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to
2735	2326		read as follows:
2736	2327		(d) This subsection does not apply to a special panel
2737	2328		established under Section 6.425. An appraisal review board
2738	2329		consisting of more than three members may sit in panels of not fewer
2739	2330		than three members to conduct protest hearings. [However, the
2740	2331		determination of a protest heard by a panel must be made by the
2741	2332		board.] If the recommendation of a panel is not accepted by the
2742	2333		board, the board may refer the matter for rehearing to a panel
2743	2334		composed of members who did not hear the original protest [hearing]
2744	2335		or, if there are not at least three members who did not hear the
2745	2336		original protest, the board may determine the protest. [Before
2746	2337		determining a protest or conducting a rehearing before a new panel
2747	2338		or the board, the board shall deliver notice of the hearing or
2748	2339		meeting to determine the protest in accordance with the provisions
2749	2340		of this subchapter.]
2750	2341		(d-1) An appraisal review board to which Section 6.425
2751	2342		applies shall sit in special panels established under that section
2752	2343		to conduct protest hearings. A special panel may conduct a protest
2753	2344		hearing relating to property only if the property is described by
2754	2345		Section 6.425(b) and the property owner has requested that a
2755	2346		special panel conduct the hearing or if the protest is assigned to
2756	2347		the special panel under Section 6.425(f). If the recommendation of
2757	2348		a special panel is not accepted by the board, the board may refer
2758	2349		the matter for rehearing to another special panel composed of
2759	2350		members who did not hear the original protest or, if there are not
2760	2351		at least three other special panel members who did not hear the
2761	2352		original protest, the board may determine the protest.
2762	2353		(d-2) The determination of a protest heard by a panel under
2763	2354		Subsection (d) or (d-1) must be made by the board.
2764	2355		(d-3) The board must deliver notice of a hearing or meeting
2765	2356		to determine a protest heard by a panel, or to rehear a protest,
2766	2357		under Subsection (d) or (d-1) in accordance with the provisions of
2767	2358		this subchapter.
2768		-	SECTION 63. Section 41.46(a), Tax Code, is amended to read
	2359	+	SECTION 50. Section 41.46(a), Tax Code, is amended to read
2769	2360		as follows:
2770	2361		(a) The appraisal review board before which a protest
2771	2362		hearing is scheduled shall deliver written notice to the property
2772	2363		owner initiating a protest not later than the 15th day before the
2773	2364		date of the hearing. The notice must include:
2774	2365		(1) [of] the date, time, and place of [fixed for] the
2775	2366		hearing;
2776	2367		(2) a description of the subject matter of the hearing
2777	2368		that is sufficient to identify the specific action being protested,
2778	2369		such as:
2779	2370		(A) the determination of the appraised value of
2780	2371		the property owner's property;
2781	2372		(B) the denial to the property owner in whole or
2782	2373		in part of a partial exemption; or
2783	2374		(C) the determination that the property owner's
2784	2375		land does not qualify for appraisal as provided by Subchapter C, D,
2785	2376		E, or H, Chapter 23; and
2786	2377		(3) a statement that [on the protest and of] the
2787	2378		property owner is entitled [owner's entitlement] to a postponement
2788	2379		of the hearing as provided by Section 41.45 unless the property
2789	2380		owner waives in writing notice of the hearing. [The board shall
2790	2381		deliver the notice not later than the 15th day before the date of
2791	2382		the hearing.]
2792		-	SECTION 64. Section 41.461, Tax Code, is amended to read as
	2383	+	SECTION 51. Section 41.461, Tax Code, is amended to read as
2793	2384		follows:
2794	2385		Sec. 41.461. NOTICE OF CERTAIN MATTERS BEFORE HEARING;
2795	2386		DELIVERY OF REQUESTED INFORMATION. (a) At least 14 days before a
2796	2387		hearing on a protest, the chief appraiser shall:
2797	2388		(1) deliver a copy of the pamphlet prepared by the
2798	2389		comptroller under Section 5.06 [5.06(a)] to the property owner
2799	2390		initiating the protest [if the owner is representing himself], or
2800	2391		to an agent representing the owner if requested by the agent;
2801	2392		(2) inform the property owner that the owner or the
2802	2393		agent of the owner is entitled on request to [may inspect and may
2803	2394		obtain] a copy of the data, schedules, formulas, and all other
2804	2395		information the chief appraiser will [plans to] introduce at the
2805	2396		hearing to establish any matter at issue; and
2806	2397		(3) deliver a copy of the hearing procedures
2807	2398		established by the appraisal review board under Section 41.66 to
2808	2399		the property owner.
2809	2400		(b) The chief appraiser may not charge a property owner or
2810	2401		the designated agent of the owner for copies provided to the [an]
2811	2402		owner or designated agent under this section, regardless of the
2812	2403		manner in which the copies are prepared or delivered [may not exceed
2813	2404		the charge for copies of public information as provided under
2814	2405		Subchapter F, Chapter 552, Government Code, except:
2815	2406		[(1) the total charge for copies provided in
2816	2407		connection with a protest of the appraisal of residential property
2817	2408		may not exceed $15 for each residence; and
2818	2409		[(2) the total charge for copies provided in
2819	2410		connection with a protest of the appraisal of a single unit of
2820	2411		property subject to appraisal, other than residential property, may
2821	2412		not exceed $25].
2822	2413		(c) A chief appraiser shall deliver information requested
2823	2414		by a property owner or the agent of the owner under Subsection
2824	2415		(a)(2):
2825	2416		(1) by regular first-class mail, deposited in the
2826	2417		United States mail, postage prepaid, and addressed to the property
2827	2418		owner or agent at the address provided in the request for the
2828	2419		information;
2829	2420		(2) in an electronic format as provided by an
2830	2421		agreement under Section 1.085; or
2831	2422		(3) subject to Subsection (d), by referring the
2832	2423		property owner or the agent of the owner to a secure Internet
2833	2424		website with user registration and authentication or to the exact
2834	2425		Internet location or uniform resource locator (URL) address on an
2835	2426		Internet website maintained by the appraisal district on which the
2836	2427		requested information is identifiable and readily available.
2837	2428		(d) If a chief appraiser provides a property owner or the
2838	2429		designated agent of the owner information under Subsection (c)(3),
2839	2430		the notice must contain a statement in a conspicuous font that
2840	2431		clearly indicates that the property owner or the agent of the owner
2841	2432		may on request receive the information by regular first-class mail
2842	2433		or in person at the appraisal office. On request by a property
2843	2434		owner or the agent of the owner, the chief appraiser must provide
2844	2435		the information by regular first-class mail or in person at the
2845	2436		appraisal office.
2846		-	SECTION 65. Section 41.47, Tax Code, is amended by adding
2847		-	Subsections (c-2)~~, (f),~~ and (g) and amending Subsections (d) and
2848		-	~~(e) to~~ read as follows:
	2437	+	SECTION 52. Section 41.47, Tax Code, is amended by adding
	2438	+	Subsections (c-2) and (f) and amending Subsections (d) and (e) to
	2439	+	read as follows:
2849	2440		(c-2) The board may not determine the appraised value of the
2850	2441		property that is the subject of a protest to be an amount greater
2851	2442		than the appraised value of the property as shown in the appraisal
2852	2443		records submitted to the board by the chief appraiser under Section
2853		-	25.22 or 25.23, except as requested and agreed to by the property
2854		-	owner. This subsection does not apply if the action being protested
2855		-	is the cancellation, modification, or denial of an exemption or the
2856		-	determination that the property does not qualify for appraisal as
2857		-	provided by Subchapter C, D, E, or H, Chapter 23.
	2444	+	25.22 or 25.23. This subsection does not apply if the action being
	2445	+	protested is the cancellation, modification, or denial of an
	2446	+	exemption or the determination that the property does not qualify
	2447	+	for appraisal as provided by Subchapter C, D, E, or H, Chapter 23.
2858	2448		(d) The board shall deliver by certified mail:
2859	2449		(1) a notice of issuance of the order and a copy of the
2860	2450		order to the property owner and the chief appraiser; and
2861	2451		(2) a copy of the appraisal review board survey
2862	2452		prepared under Section 5.104 and instructions for completing and
2863	2453		submitting the survey to the property owner.
2864	2454		(e) The notice of the issuance of the order must contain a
2865	2455		prominently printed statement in upper-case bold lettering
2866	2456		informing the property owner in clear and concise language of the
2867	2457		property owner's right to appeal the order of the board [board's
2868	2458		decision] to district court. The statement must describe the
2869	2459		deadline prescribed by Section 42.06(a) [of this code] for filing a
2870	2460		written notice of appeal[,] and the deadline prescribed by Section
2871	2461		42.21(a) [of this code] for filing the petition for review with the
2872	2462		district court.
2873	2463		(f) The appraisal review board shall take the actions
2874	2464		required by Subsections (a) and (d) not later than:
2875	2465		(1) the 30th day after the date the hearing on the
2876	2466		protest is concluded, if the board is established for an appraisal
2877	2467		district located in a county with a population of less than four
2878	2468		million; or
2879	2469		(2) the 45th day after the date the hearing on the
2880	2470		protest is concluded, if the board is established for an appraisal
2881	2471		district located in a county with a population of four million or
2882	2472		more.
2883		-	(g) The chief appraiser and the property owner or the
2884		-	designated agent of the owner may file a joint motion with the
2885		-	appraisal review board notifying the board that the chief appraiser
2886		-	and the property owner or the designated agent of the owner have
2887		-	agreed to a disposition of the protest and requesting the board to
2888		-	issue an agreed order. The joint motion must contain the terms of
2889		-	the disposition of the protest. The board shall issue the agreed
2890		-	order not later than the fifth day after the date on which the joint
2891		-	motion is filed with the board. The chief appraiser and the
2892		-	property owner or the designated agent of the owner may provide in
2893		-	the joint motion that the agreed order is appealable in the same
2894		-	manner as any other order issued by the board under this section.
2895		-	SECTION 66. Section 41.66, Tax Code, is amended by amending
	2473	+	SECTION 53. Section 41.66, Tax Code, is amended by amending
2896	2474		Subsections (h), (i), (j), and (k) and adding Subsections (j-1),
2897		-	~~(j-2),~~ (k-1), and (p) to read as follows:
	2475	+	(k-1), and (p) to read as follows:
2898	2476		(h) The appraisal review board shall postpone a hearing on a
2899	2477		protest if the property owner or the designated agent of the owner
2900	2478		requests additional time to prepare for the hearing and establishes
2901	2479		to the board that the chief appraiser failed to comply with Section
2902	2480		41.461. The board is not required to postpone a hearing more than
2903	2481		one time under this subsection.
2904	2482		(i) A hearing on a protest filed by a property owner or the
2905	2483		designated agent of the owner [who is not represented by an agent
2906	2484		designated under Section 1.111] shall be set for a time and date
2907	2485		certain. If the hearing is not commenced within two hours of the
2908	2486		time set for the hearing, the appraisal review board shall postpone
2909	2487		the hearing on the request of the property owner or the designated
2910	2488		agent of the owner.
2911	2489		(j) On the request of a property owner or the [a] designated
2912	2490		agent of the owner, an appraisal review board shall schedule
2913	2491		hearings on protests concerning up to 20 designated properties to
2914	2492		be held consecutively on the same day. The designated properties
2915	2493		must be identified in the same notice of protest, and the notice
2916	2494		must contain in boldfaced type the statement "request for same-day
2917	2495		protest hearings." A property owner or the designated agent of the
2918	2496		owner may [not] file more than one request under this subsection
2919	2497		with the appraisal review board in the same tax year. The appraisal
2920	2498		review board may schedule hearings on protests concerning more than
2921	2499		20 properties filed by the same property owner or the designated
2922	2500		agent of the owner and may use different panels to conduct the
2923	2501		hearings based on the board's customary scheduling. The appraisal
2924	2502		review board may follow the practices customarily used by the board
2925	2503		in the scheduling of hearings under this subsection.
2926	2504		(j-1) An appraisal review board may schedule the hearings on
2927	2505		all protests filed by a property owner or the designated agent of
2928	2506		the owner to be held consecutively. The notice of the hearings must
2929	2507		state the date and time that the first hearing will begin, state the
2930	2508		date the last hearing will end, and list the order in which the
2931	2509		hearings will be held. The order of the hearings listed in the
2932	2510		notice may not be changed without the agreement of the property
2933	2511		owner or the designated agent of the owner, the chief appraiser, and
2934	2512		the appraisal review board. The board may not reschedule a hearing
2935	2513		for which notice is given under this subsection to a date earlier
2936	2514		than the seventh day after the date the last hearing was scheduled
2937	2515		to end unless agreed to by the property owner or the designated
2938	2516		agent of the owner, the chief appraiser, and the appraisal review
2939	2517		board. Unless agreed to by the parties, the board must provide
2940	2518		written notice of the date and time of the rescheduled hearing to
2941	2519		the property owner or the designated agent of the owner not later
2942	2520		than the seventh day before the date of the hearing.
2943		-	(j-2) An appraisal review board must schedule a hearing on a
2944		-	protest filed by a property owner who is 65 years of age or older,
2945		-	disabled, a military service member, a military veteran, or the
2946		-	spouse of a military service member or military veteran before
2947		-	scheduling a hearing on a protest filed by a designated agent of a
2948		-	property owner.
2949	2521		(k) This subsection does not apply to a special panel
2950	2522		established under Section 6.425. If an appraisal review board sits
2951	2523		in panels to conduct protest hearings, protests shall be randomly
2952	2524		assigned to panels, except that the board may consider the type of
2953	2525		property subject to the protest or the ground of the protest for the
2954	2526		purpose of using the expertise of a particular panel in hearing
2955	2527		protests regarding particular types of property or based on
2956	2528		particular grounds. If a protest is scheduled to be heard by a
2957	2529		particular panel, the protest may not be reassigned to another
2958	2530		panel without the consent of the property owner or the designated
2959	2531		agent of the owner. If the appraisal review board has cause to
2960	2532		reassign a protest to another panel, a property owner or the
2961	2533		designated agent of the owner may agree to reassignment of the
2962	2534		protest or may request that the hearing on the protest be postponed.
2963	2535		The board shall postpone the hearing on that request. A change of
2964	2536		members of a panel because of a conflict of interest, illness, or
2965	2537		inability to continue participating in hearings for the remainder
2966	2538		of the day does not constitute reassignment of a protest to another
2967	2539		panel.
2968	2540		(k-1) On the request of a property owner or the designated
2969	2541		agent of the owner, an appraisal review board to which Section 6.425
2970	2542		applies shall assign a protest relating to property described by
2971	2543		Section 6.425(b) to a special panel. In addition, the chairman of
2972	2544		the appraisal review board may assign a protest relating to
2973	2545		property not described by Section 6.425(b) to a special panel as
2974	2546		authorized by Section 6.425(f), but only if the assignment is
2975	2547		requested or consented to by the property owner or the designated
2976	2548		agent of the owner. Protests assigned to special panels shall be
2977	2549		randomly assigned to those panels. If a protest is scheduled to be
2978	2550		heard by a particular special panel, the protest may not be
2979	2551		reassigned to another special panel without the consent of the
2980	2552		property owner or the designated agent of the owner. If the board
2981	2553		has cause to reassign a protest to another special panel, a property
2982	2554		owner or the designated agent of the owner may agree to reassignment
2983	2555		of the protest or may request that the hearing on the protest be
2984	2556		postponed. The board shall postpone the hearing on that request. A
2985	2557		change of members of a special panel because of a conflict of
2986	2558		interest, illness, or inability to continue participating in
2987	2559		hearings for the remainder of the day does not constitute
2988	2560		reassignment of a protest to another special panel.
2989	2561		(p) At the end of a hearing on a protest, the appraisal
2990	2562		review board shall provide the property owner or the designated
2991	2563		agent of the owner one or more documents indicating that the members
2992	2564		of the board hearing the protest signed the affidavit required by
2993	2565		Subsection (g).
2994		-	SECTION 67. Section 41.67(d), Tax Code, is amended to read
	2566	+	SECTION 54. Section 41.67(d), Tax Code, is amended to read
2995	2567		as follows:
2996	2568		(d) Information that was previously requested under Section
2997	2569		41.461 by the protesting party that was not delivered [made
2998	2570		available] to the protesting party at least 14 days before the
2999	2571		scheduled or postponed hearing may not be used or offered in any
3000	2572		form as evidence in the hearing, including as a document or through
3001	2573		argument or testimony. This subsection does not apply to
3002	2574		information offered to rebut evidence or argument presented at the
3003	2575		hearing by the protesting party or that party's designated agent.
3004		-	SECTION 68. Section 41.71, Tax Code, is amended to read as
	2576	+	SECTION 55. Section 41.71, Tax Code, is amended to read as
3005	2577		follows:
3006	2578		Sec. 41.71. EVENING AND WEEKEND HEARINGS. (a) An
3007	2579		appraisal review board by rule shall provide for hearings on
3008	2580		protests [in the evening or] on a Saturday or after 5 p.m. on a
3009	2581		weekday [Sunday].
3010	2582		(b) The board may not schedule:
3011	2583		(1) the first hearing on a protest held on a weekday
3012	2584		evening to begin after 7 p.m.; or
3013	2585		(2) a hearing on a protest on a Sunday.
3014		-	SECTION 69. Section 41A.03(a-1), Tax Code, is amended to
3015		-	read as follows:
3016		-	(a-1) If a property owner requests binding arbitration
3017		-	under this chapter to appeal appraisal review board orders
3018		-	involving two or more contiguous tracts of land that are owned by
3019		-	the property owner [contiguous to one another], a single
3020		-	arbitration deposit in the amount provided by Subsection (a)(2) is
3021		-	sufficient to satisfy the requirement of Subsection (a)(2). For
3022		-	purposes of this subsection, "contiguous tracts of land" means
3023		-	improved or unimproved tracts of land that are touching or that
3024		-	share a common boundary, as determined using appraisal district
3025		-	records or legal descriptions of the tracts.
3026		-	SECTION 70. Section 41A.06(b), Tax Code, is amended to read
	2586	+	SECTION 56. Section 41A.06(b), Tax Code, is amended to read
3027	2587		as follows:
3028	2588		(b) To initially qualify to serve as an arbitrator under
3029	2589		this chapter, a person must:
3030	2590		(1) meet the following requirements, as applicable:
3031	2591		(A) be licensed as an attorney in this state; or
3032	2592		(B) have:
3033	2593		(i) completed at least 30 hours of training
3034	2594		in arbitration and alternative dispute resolution procedures from a
3035	2595		university, college, or legal or real estate trade association; and
3036	2596		(ii) been licensed or certified
3037	2597		continuously during the five years preceding the date the person
3038	2598		agrees to serve as an arbitrator as:
3039	2599		(a) a real estate broker or sales
3040	2600		agent under Chapter 1101, Occupations Code;
3041	2601		(b) a real estate appraiser under
3042	2602		Chapter 1103, Occupations Code; or
3043	2603		(c) a certified public accountant
3044	2604		under Chapter 901, Occupations Code; [and]
3045	2605		(2) complete the courses for training and education of
3046	2606		appraisal review board members established under Sections 5.041(a)
3047	2607		and (e-1) and be issued a certificate for each course indicating
3048	2608		course completion;
3049	2609		(3) complete the training program on property tax law
3050	2610		for the training and education of arbitrators established under
3051	2611		Section 5.043; and
3052	2612		(4) agree to conduct an arbitration for a fee that is
3053	2613		not more than:
3054	2614		(A) $400, if the property qualifies as the
3055	2615		owner's residence homestead under Section 11.13 and the appraised
3056	2616		or market value, as applicable, of the property is $500,000 or less,
3057	2617		as determined by the order;
3058	2618		(B) $450, if the property qualifies as the
3059	2619		owner's residence homestead under Section 11.13 and the appraised
3060	2620		or market value, as applicable, of the property is more than
3061	2621		$500,000, as determined by the order;
3062	2622		(C) $450, if the property does not qualify as the
3063	2623		owner's residence homestead under Section 11.13 and the appraised
3064	2624		or market value, as applicable, of the property is $1 million or
3065	2625		less, as determined by the order;
3066	2626		(D) $750, if the property does not qualify as the
3067	2627		owner's residence homestead under Section 11.13 and the appraised
3068	2628		or market value, as applicable, of the property is more than $1
3069	2629		million but not more than $2 million, as determined by the order;
3070	2630		(E) $1,000, if the property does not qualify as
3071	2631		the owner's residence homestead under Section 11.13 and the
3072	2632		appraised or market value, as applicable, of the property is more
3073	2633		than $2 million but not more than $3 million, as determined by the
3074	2634		order; or
3075	2635		(F) $1,500, if the property does not qualify as
3076	2636		the owner's residence homestead under Section 11.13 and the
3077	2637		appraised or market value, as applicable, of the property is more
3078	2638		than $3 million but not more than $5 million, as determined by the
3079	2639		order.
3080		-	SECTION 71. Sections 41A.061(b) and (c), Tax Code, are
	2640	+	SECTION 57. Sections 41A.061(b) and (c), Tax Code, are
3081	2641		amended to read as follows:
3082	2642		(b) To renew the person's agreement to serve as an
3083	2643		arbitrator, the person must:
3084	2644		(1) file a renewal application with the comptroller at
3085	2645		the time and in the manner prescribed by the comptroller;
3086	2646		(2) continue to meet the requirements provided by
3087	2647		Sections 41A.06(b)(1) and (4) [Section 41A.06(b)]; [and]
3088	2648		(3) during the preceding two years have completed at
3089	2649		least eight hours of continuing education in arbitration and
3090	2650		alternative dispute resolution procedures offered by a university,
3091	2651		college, real estate trade association, or legal association; and
3092	2652		(4) complete a revised training program on property
3093	2653		tax law for the training and education of arbitrators established
3094	2654		under Section 5.043 not later than the 120th day after the date the
3095	2655		program is available to be taken if the comptroller:
3096	2656		(A) revises the program after the person is
3097	2657		included in the registry; and
3098	2658		(B) determines that the program is substantially
3099	2659		revised.
3100	2660		(c) The comptroller shall remove a person from the registry
3101	2661		if:
3102	2662		(1) the person fails or declines to renew the person's
3103	2663		agreement to serve as an arbitrator in the manner required by this
3104	2664		section; [or]
3105	2665		(2) the comptroller determines by clear and convincing
3106	2666		evidence that there is good cause to remove the person from the
3107	2667		registry, including evidence of repeated bias or misconduct by the
3108	2668		person while acting as an arbitrator; or
3109	2669		(3) the person fails to complete a revised training
3110	2670		program on property tax law for the training and education of
3111	2671		arbitrators established under Section 5.043 not later than the
3112	2672		120th day after the date the program is available to be taken if the
3113	2673		comptroller:
3114	2674		(A) revises the program after the person is
3115	2675		included in the registry; and
3116	2676		(B) determines that the program is substantially
3117	2677		revised.
3118		-	SECTION 72. Section 41A.07, Tax Code, is amended by
	2678	+	SECTION 58. Section 41A.07, Tax Code, is amended by
3119	2679		amending Subsections (e), (f), and (g) and adding Subsection (h) to
3120	2680		read as follows:
3121	2681		(e) To be eligible for appointment as an arbitrator under
3122	2682		this section [Subsection (a)], the arbitrator must reside[:
3123	2683		[(1) in the county in which the property that is the
3124	2684		subject of the appeal is located; or
3125	2685		[(2)] in this state [if no available arbitrator on the
3126	2686		registry resides in that county].
3127	2687		(f) A person is not eligible for appointment as an
3128	2688		arbitrator under this section [Subsection (a)] if at any time
3129		-	during the preceding ~~two [~~five] years, the person has:
	2689	+	during the preceding five years, the person has:
3130	2690		(1) represented a person for compensation in a
3131	2691		proceeding under this title in the appraisal district in which the
3132	2692		property that is the subject of the appeal is located;
3133	2693		(2) served as an officer or employee of that appraisal
3134	2694		district; or
3135	2695		(3) served as a member of the appraisal review board
3136	2696		for that appraisal district.
3137	2697		(g) The comptroller may not appoint an arbitrator under this
3138	2698		section [Subsection (a)] if the comptroller determines that there
3139	2699		is good cause not to appoint the arbitrator, including information
3140	2700		or evidence indicating repeated bias or misconduct by the person
3141	2701		while acting as an arbitrator.
3142	2702		(h) A property owner may request that, in appointing an
3143	2703		initial arbitrator under this section, the comptroller appoint an
3144	2704		arbitrator who resides in the county in which the property that is
3145	2705		the subject of the appeal is located or an arbitrator who resides
3146	2706		outside that county. In appointing an initial arbitrator under
3147	2707		Subsection (a), the comptroller shall comply with the request of
3148	2708		the property owner unless the property owner requests that the
3149	2709		comptroller appoint an arbitrator who resides in the county in
3150	2710		which the property that is the subject of the appeal is located and
3151	2711		there is not an available arbitrator who resides in that county. In
3152	2712		appointing a substitute arbitrator under Subsection (d), the
3153	2713		comptroller shall consider but is not required to comply with the
3154	2714		request of the property owner. This subsection does not authorize a
3155	2715		property owner to request the appointment of a specific individual
3156	2716		as an arbitrator.
3157		-	SECTION 73. Section 41A.09(b), Tax Code, is amended to read
	2717	+	SECTION 59. Section 41A.09(b), Tax Code, is amended to read
3158	2718		as follows:
3159	2719		(b) An award under this section:
3160	2720		(1) must include a determination of the appraised or
3161	2721		market value, as applicable, of the property that is the subject of
3162	2722		the appeal;
3163	2723		(2) may include any remedy or relief a court may order
3164	2724		under Chapter 42 in an appeal relating to the appraised or market
3165	2725		value of property;
3166	2726		(3) shall specify the arbitrator's fee, which may not
3167	2727		exceed the amount provided by Section 41A.06(b)(4) [41A.06(b)(2)];
3168	2728		(4) is final and may not be appealed except as
3169	2729		permitted under Section 171.088, Civil Practice and Remedies Code,
3170	2730		for an award subject to that section; and
3171	2731		(5) may be enforced in the manner provided by
3172	2732		Subchapter D, Chapter 171, Civil Practice and Remedies Code.
3173		-	SECTION 74. Subchapter A, Chapter 42, Tax Code, is amended
3174		-	by adding Section 42.081 to read as follows:
3175		-	Sec. 42.081. DEFERRAL OF DELINQUENT TAX SUIT DURING APPEAL.
3176		-	A taxing unit that imposes taxes on property that is the subject of
3177		-	an appeal under this chapter may not file a suit to collect a
3178		-	delinquent tax on the property during the pendency of the appeal
3179		-	unless it is determined by the court that the property owner failed
3180		-	to comply with Section 42.08.
3181		-	SECTION 75. Section 403.302, Government Code, is amended by
	2733	+	SECTION 60. Section 45.105(e), Education Code, is amended
	2734	+	to read as follows:
	2735	+	(e) The governing body of an independent school district
	2736	+	that governs a junior college district under Subchapter B, Chapter
	2737	+	130, in a county with a population of more than two million may
	2738	+	dedicate a specific percentage of the local tax levy to the use of
	2739	+	the junior college district for facilities and equipment or for the
	2740	+	maintenance and operating expenses of the junior college district.
	2741	+	To be effective, the dedication must be made by the governing body
	2742	+	on or before the date on which the governing body adopts its tax
	2743	+	rate for a year. The amount of local tax funds derived from the
	2744	+	percentage of the local tax levy dedicated to a junior college
	2745	+	district from a tax levy may not exceed the amount that would be
	2746	+	levied by five percent of the no-new-revenue [effective] tax rate
	2747	+	for the tax year calculated as provided by Section 26.04, Tax Code,
	2748	+	on all property taxable by the school district. All real property
	2749	+	purchased with these funds is the property of the school district,
	2750	+	but is subject to the exclusive control of the governing body of the
	2751	+	junior college district for as long as the junior college district
	2752	+	uses the property for educational purposes.
	2753	+	SECTION 61. Section 403.302, Government Code, is amended by
3182	2754		adding Subsections (k) and (k-1) and amending Subsection (o) to
3183	2755		read as follows:
3184	2756		(k) If the comptroller determines in the final
3185	2757		certification of the study that the school district's local value
3186	2758		as determined by the appraisal district that appraises property for
3187	2759		the school district is not valid, the comptroller shall provide
3188	2760		notice of the comptroller's determination to the board of directors
3189	2761		of the appraisal district. The board of directors of the appraisal
3190	2762		district shall hold a public meeting to discuss the receipt of
3191	2763		notice under this subsection.
3192	2764		(k-1) If the comptroller determines in the final
3193	2765		certification of the study that the school district's local value
3194	2766		as determined by the appraisal district that appraises property for
3195	2767		the school district is not valid for three consecutive years, the
3196	2768		comptroller shall conduct an additional review of the appraisal
3197	2769		district under Section 5.102, Tax Code, and provide recommendations
3198	2770		to the appraisal district regarding appraisal standards,
3199	2771		procedures, and methodologies. The comptroller may contract with a
3200	2772		third party to assist the comptroller in conducting the additional
3201	2773		review and providing the recommendations required under this
3202	2774		subsection. If the appraisal district fails to comply with the
3203	2775		recommendations provided under this subsection and the comptroller
3204	2776		finds that the board of directors of the appraisal district failed
3205	2777		to take remedial action reasonably designed to ensure substantial
3206	2778		compliance with each recommendation before the first anniversary of
3207	2779		the date the recommendations were made, the comptroller shall
3208	2780		notify the Texas Department of Licensing and Regulation, or a
3209	2781		successor to the department, which shall take action necessary to
3210	2782		ensure that the recommendations are implemented as soon as
3211	2783		practicable. Before February 1 of the year following the year in
3212	2784		which the Texas Department of Licensing and Regulation, or a
3213	2785		successor to the department, takes action under this subsection,
3214	2786		the department, with the assistance of the comptroller, shall
3215	2787		determine whether the recommendations have been substantially
3216	2788		implemented and notify the chief appraiser and the board of
3217	2789		directors of the appraisal district of the determination. If the
3218	2790		department determines that the recommendations have not been
3219	2791		substantially implemented, the board of directors of the appraisal
3220	2792		district must, within three months of the determination, consider
3221	2793		whether the failure to implement the recommendations was under the
3222	2794		current chief appraiser's control and whether the chief appraiser
3223	2795		is able to adequately perform the chief appraiser's duties.
3224	2796		(o) The comptroller shall adopt rules governing the conduct
3225	2797		of the study after consultation with the comptroller's property tax
3226	2798		administration advisory board [Comptroller's Property Value Study
3227	2799		Advisory Committee].
3228		-	SECTION 76. Section 281.107(j), Health and Safety Code, is
3229		-	amended to read as follows:
3230		-	(j) The portion of the rate of ad valorem tax that is to be
3231		-	levied and assessed each year by or for the district that is
3232		-	allocated by the district to the payment of the principal of and the
3233		-	interest on bonds and other obligations or the maintenance of
3234		-	reserves therefor in accordance with this section shall be applied
3235		-	as a payment on current debt in calculating the current debt rate
3236		-	under the applicable voter-approval tax rate [rollback] provisions
3237		-	of Chapter 26, Tax Code.
3238		-	SECTION 77. The heading to Section 281.124, Health and
3239		-	Safety Code, is amended to read as follows:
3240		-	Sec. 281.124. ELECTION TO APPROVE TAX RATE IN EXCESS OF
3241		-	VOTER-APPROVAL [ROLLBACK] TAX RATE.
3242		-	SECTION 78. Sections 281.124(b), (c), (d), and (e), Health
3243		-	and Safety Code, are amended to read as follows:
3244		-	(b) The board may hold an election at which the registered
3245		-	voters of the district may approve a tax rate for the current tax
3246		-	year that exceeds the district's voter-approval [rollback] tax rate
3247		-	for the year computed under Chapter 26, Tax Code, by a specific rate
3248		-	stated in dollars and cents per $100 of taxable value.
3249		-	(c) An election under this section must be held at least 180
3250		-	days before the date on which the district's tax rate is adopted by
3251		-	the board. At the election, the ballot shall be prepared to permit
3252		-	voting for or against the proposition: "Approving the ad valorem
3253		-	tax rate of $ (insert total proposed tax rate) per $100 valuation in
3254		-	(insert district name) for the (insert current tax year) tax year, a
3255		-	rate that exceeds the district's voter-approval [rollback] tax
3256		-	rate. The proposed ad valorem tax rate exceeds the ad valorem tax
3257		-	rate most recently adopted by the district by $ (insert difference
3258		-	between proposed and preceding year's tax rates) per $100
3259		-	valuation."
3260		-	(d) If a majority of the votes cast in the election favor the
3261		-	proposition, the tax rate for the specified tax year is the rate
3262		-	approved by the voters, and that rate is not subject to [a rollback
3263		-	election under] Section 26.07, Tax Code. The board shall adopt the
3264		-	tax rate as provided by Chapter 26, Tax Code.
3265		-	(e) If the proposition is not approved as provided by
3266		-	Subsection (d) [(c)], the board may not adopt a tax rate for the
3267		-	district for the specified tax year that exceeds the rate that was
3268		-	not approved, and Section 26.07, Tax Code, applies to the adopted
3269		-	rate if that rate exceeds the district's voter-approval [rollback]
3270		-	tax rate.
3271		-	SECTION 79. Section 102.007(d), Local Government Code, is
	2800	+	SECTION 62. Section 102.007(d), Local Government Code, is
3272	2801		amended to read as follows:
3273	2802		(d) An adopted budget must contain a cover page that
3274	2803		includes:
3275	2804		(1) one of the following statements in 18-point or
3276	2805		larger type that accurately describes the adopted budget:
3277	2806		(A) "This budget will raise more revenue from
3278	2807		property taxes than last year's budget by an amount of (insert total
3279	2808		dollar amount of increase), which is a (insert percentage increase)
3280	2809		percent increase from last year's budget. The property tax revenue
3281	2810		to be raised from new property added to the tax roll this year is
3282	2811		(insert amount computed by multiplying the proposed tax rate by the
3283	2812		value of new property added to the roll).";
3284	2813		(B) "This budget will raise less revenue from
3285	2814		property taxes than last year's budget by an amount of (insert total
3286	2815		dollar amount of decrease), which is a (insert percentage decrease)
3287	2816		percent decrease from last year's budget. The property tax revenue
3288	2817		to be raised from new property added to the tax roll this year is
3289	2818		(insert amount computed by multiplying the proposed tax rate by the
3290	2819		value of new property added to the roll)."; or
3291	2820		(C) "This budget will raise the same amount of
3292	2821		revenue from property taxes as last year's budget. The property tax
3293	2822		revenue to be raised from new property added to the tax roll this
3294	2823		year is (insert amount computed by multiplying the proposed tax
3295	2824		rate by the value of new property added to the roll).";
3296	2825		(2) the record vote of each member of the governing
3297	2826		body by name voting on the adoption of the budget;
3298	2827		(3) the municipal property tax rates for the preceding
3299	2828		fiscal year, and each municipal property tax rate that has been
3300	2829		adopted or calculated for the current fiscal year, including:
3301	2830		(A) the property tax rate;
3302	2831		(B) the no-new-revenue [effective] tax rate;
3303	2832		(C) the no-new-revenue [effective] maintenance
3304	2833		and operations tax rate;
3305		-	(D) the ~~voter-approval [~~rollback] tax rate; and
	2834	+	(D) the rollback tax rate; and
3306	2835		(E) the debt rate; and
3307	2836		(4) the total amount of municipal debt obligations.
3308		-	SECTION 80. Section 111.008(d), Local Government Code, is
	2837	+	SECTION 63. Section 111.008(d), Local Government Code, is
3309	2838		amended to read as follows:
3310	2839		(d) An adopted budget must contain a cover page that
3311	2840		includes:
3312	2841		(1) one of the following statements in 18-point or
3313	2842		larger type that accurately describes the adopted budget:
3314	2843		(A) "This budget will raise more revenue from
3315	2844		property taxes than last year's budget by an amount of (insert total
3316	2845		dollar amount of increase), which is a (insert percentage increase)
3317	2846		percent increase from last year's budget. The property tax revenue
3318	2847		to be raised from new property added to the tax roll this year is
3319	2848		(insert amount computed by multiplying the proposed tax rate by the
3320	2849		value of new property added to the roll).";
3321	2850		(B) "This budget will raise less revenue from
3322	2851		property taxes than last year's budget by an amount of (insert total
3323	2852		dollar amount of decrease), which is a (insert percentage decrease)
3324	2853		percent decrease from last year's budget. The property tax revenue
3325	2854		to be raised from new property added to the tax roll this year is
3326	2855		(insert amount computed by multiplying the proposed tax rate by the
3327	2856		value of new property added to the roll)."; or
3328	2857		(C) "This budget will raise the same amount of
3329	2858		revenue from property taxes as last year's budget. The property tax
3330	2859		revenue to be raised from new property added to the tax roll this
3331	2860		year is (insert amount computed by multiplying the proposed tax
3332	2861		rate by the value of new property added to the roll).";
3333	2862		(2) the record vote of each member of the
3334	2863		commissioners court by name voting on the adoption of the budget;
3335	2864		(3) the county property tax rates for the preceding
3336	2865		fiscal year, and each county property tax rate that has been adopted
3337	2866		or calculated for the current fiscal year, including:
3338	2867		(A) the property tax rate;
3339	2868		(B) the no-new-revenue [effective] tax rate;
3340	2869		(C) the no-new-revenue [effective] maintenance
3341	2870		and operations tax rate;
3342		-	(D) the ~~voter-approval [~~rollback] tax rate; and
	2871	+	(D) the rollback tax rate; and
3343	2872		(E) the debt rate; and
3344	2873		(4) the total amount of county debt obligations.
3345		-	SECTION 81. Section 111.039(d), Local Government Code, is
	2874	+	SECTION 64. Section 111.039(d), Local Government Code, is
3346	2875		amended to read as follows:
3347	2876		(d) An adopted budget must contain a cover page that
3348	2877		includes:
3349	2878		(1) one of the following statements in 18-point or
3350	2879		larger type that accurately describes the adopted budget:
3351	2880		(A) "This budget will raise more revenue from
3352	2881		property taxes than last year's budget by an amount of (insert total
3353	2882		dollar amount of increase), which is a (insert percentage increase)
3354	2883		percent increase from last year's budget. The property tax revenue
3355	2884		to be raised from new property added to the tax roll this year is
3356	2885		(insert amount computed by multiplying the proposed tax rate by the
3357	2886		value of new property added to the roll).";
3358	2887		(B) "This budget will raise less revenue from
3359	2888		property taxes than last year's budget by an amount of (insert total
3360	2889		dollar amount of decrease), which is a (insert percentage decrease)
3361	2890		percent decrease from last year's budget. The property tax revenue
3362	2891		to be raised from new property added to the tax roll this year is
3363	2892		(insert amount computed by multiplying the proposed tax rate by the
3364	2893		value of new property added to the roll)."; or
3365	2894		(C) "This budget will raise the same amount of
3366	2895		revenue from property taxes as last year's budget. The property tax
3367	2896		revenue to be raised from new property added to the tax roll this
3368	2897		year is (insert amount computed by multiplying the proposed tax
3369	2898		rate by the value of new property added to the roll).";
3370	2899		(2) the record vote of each member of the
3371	2900		commissioners court by name voting on the adoption of the budget;
3372	2901		(3) the county property tax rates for the preceding
3373	2902		fiscal year, and each county property tax rate that has been adopted
3374	2903		or calculated for the current fiscal year, including:
3375	2904		(A) the property tax rate;
3376	2905		(B) the no-new-revenue [effective] tax rate;
3377	2906		(C) the no-new-revenue [effective] maintenance
3378	2907		and operations tax rate;
3379		-	(D) the ~~voter-approval [~~rollback] tax rate; and
	2908	+	(D) the rollback tax rate; and
3380	2909		(E) the debt rate; and
3381	2910		(4) the total amount of county debt obligations.
3382		-	SECTION 82. Section 111.068(c), Local Government Code, is
	2911	+	SECTION 65. Section 111.068(c), Local Government Code, is
3383	2912		amended to read as follows:
3384	2913		(c) An adopted budget must contain a cover page that
3385	2914		includes:
3386	2915		(1) one of the following statements in 18-point or
3387	2916		larger type that accurately describes the adopted budget:
3388	2917		(A) "This budget will raise more revenue from
3389	2918		property taxes than last year's budget by an amount of (insert total
3390	2919		dollar amount of increase), which is a (insert percentage increase)
3391	2920		percent increase from last year's budget. The property tax revenue
3392	2921		to be raised from new property added to the tax roll this year is
3393	2922		(insert amount computed by multiplying the proposed tax rate by the
3394	2923		value of new property added to the roll).";
3395	2924		(B) "This budget will raise less revenue from
3396	2925		property taxes than last year's budget by an amount of (insert total
3397	2926		dollar amount of decrease), which is a (insert percentage decrease)
3398	2927		percent decrease from last year's budget. The property tax revenue
3399	2928		to be raised from new property added to the tax roll this year is
3400	2929		(insert amount computed by multiplying the proposed tax rate by the
3401	2930		value of new property added to the roll)."; or
3402	2931		(C) "This budget will raise the same amount of
3403	2932		revenue from property taxes as last year's budget. The property tax
3404	2933		revenue to be raised from new property added to the tax roll this
3405	2934		year is (insert amount computed by multiplying the proposed tax
3406	2935		rate by the value of new property added to the roll).";
3407	2936		(2) the record vote of each member of the
3408	2937		commissioners court by name voting on the adoption of the budget;
3409	2938		(3) the county property tax rates for the preceding
3410	2939		fiscal year, and each county property tax rate that has been adopted
3411	2940		or calculated for the current fiscal year, including:
3412	2941		(A) the property tax rate;
3413	2942		(B) the no-new-revenue [effective] tax rate;
3414	2943		(C) the no-new-revenue [effective] maintenance
3415	2944		and operations tax rate;
3416		-	(D) the ~~voter-approval [~~rollback] tax rate; and
	2945	+	(D) the rollback tax rate; and
3417	2946		(E) the debt rate; and
3418	2947		(4) the total amount of county debt obligations.
3419		-	SECTION 83. Section 1101.254(f), Special District Local
	2948	+	SECTION 66. Section 1101.254(f), Special District Local
3420	2949		Laws Code, is amended to read as follows:
3421	2950		(f) This section does not affect the applicability of [any
3422	2951		rights district voters may have to petition for an election under]
3423	2952		Section 26.07, Tax Code, to the district's tax rate, except that if
3424	2953		district voters approve a tax rate increase under this section,
3425	2954		[the voters may not petition for an election under] Section 26.07,
3426	2955		Tax Code, does not apply [as] to the tax rate for that year.
3427		-	SECTION 84. Sections 1122.2522, 3828.157, and 8876.152,
3428		-	Special District Local Laws Code, are amended to read as follows:
3429		-	Sec. 1122.2522. VOTER-APPROVAL [ROLLBACK] TAX RATE
3430		-	PROVISIONS APPLICABLE. [(a)] If in any year the board adopts a tax
3431		-	rate that exceeds the voter-approval [rollback] tax rate calculated
3432		-	as provided by Chapter 26, Tax Code, [the qualified voters of the
3433		-	district by petition may require that] an election under Section
3434		-	26.07 of that code must be held to determine whether or not to
3435		-	approve [reduce] the tax rate adopted by the board for that year [to
3436		-	the rollback tax rate].
	2956	+	SECTION 67. Sections 1122.2522 and 8876.152, Special
	2957	+	District Local Laws Code, are amended to read as follows:
	2958	+	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
	2959	+	[(a)] If in any year the board adopts a tax rate that exceeds the
	2960	+	rollback tax rate calculated as provided by Chapter 26, Tax Code,
	2961	+	[the qualified voters of the district by petition may require that]
	2962	+	an election under Section 26.07 of that code must be held to
	2963	+	determine whether or not to approve [reduce] the tax rate adopted by
	2964	+	the board for that year [to the rollback tax rate].
3437	2965		[(b) To the extent a conflict exists between this section
3438	2966		and a provision of the Tax Code, the provision of the Tax Code
3439	2967		prevails.]
3440		-	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
3441		-	PROVISIONS. Sections 26.04, 26.05, [and] 26.07, and 26.075, Tax
3442		-	Code, do not apply to a tax imposed under Section 3828.153 or
3443		-	3828.156.
3444	2968		Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
3445		-	(a) Sections 26.04, 26.05, 26.06, 26.061, [and] 26.07, ~~and 26.075~~,
3446		-	~~Tax Code, do~~ not apply to a tax imposed by the district.
	2969	+	(a) Sections 26.04, 26.05, 26.06, 26.061, and 26.07, Tax Code, do
	2970	+	not apply to a tax imposed by the district.
3447	2971		(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
3448	2972		Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
3449	2973		78th Legislature, Regular Session, 2003, applies] to the district.
3450		-	SECTION 85. Section 49.057, Water Code, is amended by
3451		-	amending Subsection (b) and adding Subsection (b-1) to read as
3452		-	follows:
3453		-	(b) The board shall adopt an annual budget. The board of a
3454		-	developed district, as defined by Section 49.23602, shall include
3455		-	as an appendix to the budget the district's:
3456		-	(1) audited financial statements;
3457		-	(2) bond transcripts; and
3458		-	(3) engineer's reports required by Section 49.106.
3459		-	(b-1) All district employees are employed at the will of the
3460		-	district unless the district and employee execute a written
3461		-	employment contract.
3462		-	SECTION 86. Section 49.107(g), Water Code, is amended to
	2974	+	SECTION 68. Section 49.107(g), Water Code, is amended to
3463	2975		read as follows:
3464		-	(g) Sections 26.04, 26.05, 26.061, [and] 26.07, ~~and 26.075~~,
3465		-	~~Tax Code, do~~ not apply to a tax levied and collected under this
3466		-	~~section or an ad~~ valorem tax levied and collected for the payment of
3467		-	~~the interest on~~ and principal of bonds issued by a district.
3468		-	SECTION 87. Section 49.108(f), Water Code, is amended to
	2976	+	(g) Sections 26.04, 26.05, 26.061, and 26.07, Tax Code, do
	2977	+	not apply to a tax levied and collected under this section or an ad
	2978	+	valorem tax levied and collected for the payment of the interest on
	2979	+	and principal of bonds issued by a district.
	2980	+	SECTION 69. Section 49.108(f), Water Code, is amended to
3469	2981		read as follows:
3470		-	(f) Sections 26.04, 26.05, 26.061, [and] 26.07, and 26.075,
3471		-	Tax Code, do not apply to a tax levied and collected for payments
3472		-	made under a contract approved in accordance with this section.
3473		-	SECTION 88. Section 49.236(a), Water Code, as added by
3474		-	Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular
3475		-	Session, 2003, is amended to read as follows:
	2982	+	(f) Sections 26.04, 26.05, 26.061, and 26.07, Tax Code, do
	2983	+	not apply to a tax levied and collected for payments made under a
	2984	+	contract approved in accordance with this section.
	2985	+	SECTION 70. Section 49.236, Water Code, as added by Chapter
	2986	+	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
	2987	+	2003, is amended by amending Subsections (a) and (d) and adding
	2988	+	Subsections (e), (f), and (g) to read as follows:
3476	2989		(a) Before the board adopts an ad valorem tax rate for the
3477	2990		district for debt service, operation and maintenance purposes, or
3478	2991		contract purposes, the board shall give notice of each meeting of
3479	2992		the board at which the adoption of a tax rate will be considered.
3480	2993		The notice must:
3481	2994		(1) contain a statement in substantially the following
3482	2995		form:
3483	2996		"NOTICE OF PUBLIC HEARING ON TAX RATE
3484	2997		"The (name of the district) will hold a public hearing on a
3485	2998		proposed tax rate for the tax year (year of tax levy) on (date and
3486	2999		time) at (meeting place). Your individual taxes may increase at a
3487	3000		greater or lesser rate, or even decrease, depending on the tax rate
3488	3001		that is adopted and on the change in the taxable value of your
3489	3002		property in relation to the change in taxable value of all other
3490	3003		property [and the tax rate that is adopted]. The change in the
3491	3004		taxable value of your property in relation to the change in the
3492	3005		taxable value of all other property determines the distribution of
3493	3006		the tax burden among all property owners.
3494	3007		"(Names of all board members and, if a vote was taken, an
3495	3008		indication of how each voted on the proposed tax rate and an
3496	3009		indication of any absences.)";
3497	3010		(2) contain the following information:
3498	3011		(A) the district's total adopted tax rate for the
3499	3012		preceding year and the proposed tax rate, expressed as an amount per
3500	3013		$100;
3501	3014		(B) the difference, expressed as an amount per
3502	3015		$100 and as a percent increase or decrease, as applicable, in the
3503	3016		proposed tax rate compared to the adopted tax rate for the preceding
3504	3017		year;
3505	3018		(C) the average appraised value of a residence
3506	3019		homestead in the district in the preceding year and in the current
3507	3020		year; the district's total homestead exemption, other than an
3508	3021		exemption available only to disabled persons or persons 65 years of
3509	3022		age or older, applicable to that appraised value in each of those
3510	3023		years; and the average taxable value of a residence homestead in the
3511	3024		district in each of those years, disregarding any homestead
3512	3025		exemption available only to disabled persons or persons 65 years of
3513	3026		age or older;
3514	3027		(D) the amount of tax that would have been
3515	3028		imposed by the district in the preceding year on a residence
3516	3029		homestead appraised at the average appraised value of a residence
3517	3030		homestead in that year, disregarding any homestead exemption
3518	3031		available only to disabled persons or persons 65 years of age or
3519	3032		older;
3520	3033		(E) the amount of tax that would be imposed by the
3521	3034		district in the current year on a residence homestead appraised at
3522	3035		the average appraised value of a residence homestead in that year,
3523	3036		disregarding any homestead exemption available only to disabled
3524	3037		persons or persons 65 years of age or older, if the proposed tax
3525	3038		rate is adopted; [and]
3526	3039		(F) the difference between the amounts of tax
3527	3040		calculated under Paragraphs (D) and (E), expressed in dollars and
3528	3041		cents and described as the annual percentage increase or decrease,
3529	3042		as applicable, in the tax to be imposed by the district on the
3530	3043		average residence homestead in the district in the current year if
3531	3044		the proposed tax rate is adopted; and
3532	3045		(G) if the proposed combined debt service,
3533		-	operation and maintenance, and contract tax rate requires or
3534		-	authorizes an election to approve or reduce the tax rate, as
3535		-	applicable, a description of the purpose of the proposed tax
3536		-	increase;
	3046	+	operation and maintenance, and contract tax rate exceeds the
	3047	+	rollback tax rate, a description of the purpose of the proposed tax
	3048	+	increase; and
3537	3049		(3) contain a statement in substantially the following
3538	3050		form, as applicable:
3539		-	(A) if the district is a district described by
3540		-	Section 49.23601:
	3051	+	(A) if the district is a special taxing unit:
3541	3052		"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
3542		-	"If the district adopts a combined debt service, operation
3543		-	and maintenance, and contract tax rate that would result in the
3544		-	taxes on the average residence homestead increasing [increase] by
3545		-	more than eight percent, [the qualified voters of the district by
3546		-	petition may require that] an election must be held to determine
3547		-	whether to approve [reduce] the operation and maintenance tax rate
3548		-	[to the rollback tax rate] under Section 49.23601 [49.236(d)],
3549		-	Water Code.";
3550		-	(B) if the district is a district described by
3551		-	Section 49.23602:
	3053	+	"If operation and maintenance taxes on the average residence
	3054	+	homestead increase by more than eight percent, [the qualified
	3055	+	voters of the district by petition may require that] an election
	3056	+	must be held to determine whether to approve [reduce] the operation
	3057	+	and maintenance tax rate [to the rollback tax rate] under Section
	3058	+	49.236(d), Water Code."; or
	3059	+	(B) if the district is a taxing unit other than a
	3060	+	special taxing unit:
3552	3061		"NOTICE OF VOTE ON TAX RATE
3553		-	"If the district adopts a combined debt service, operation
3554		-	and maintenance, and contract tax rate that would result in the
3555		-	taxes on the average residence homestead increasing by more than
3556		-	3.5 percent, an election must be held to determine whether to
3557		-	approve the operation and maintenance tax rate under Section
3558		-	49.23602, Water Code."; or
3559		-	(C) if the district is a district described by
3560		-	Section 49.23603:
3561		-	"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
3562		-	"If the district adopts a combined debt service, operation
3563		-	and maintenance, and contract tax rate that would result in the
3564		-	taxes on the average residence homestead increasing by more than
3565		-	eight percent, the qualified voters of the district by petition may
3566		-	require that an election be held to determine whether to reduce the
3567		-	operation and maintenance tax rate to the voter-approval tax rate
3568		-	under Section 49.23603, Water Code."; and
3569		-	(4) include the following statement: "The 86th Texas
3570		-	Legislature modified the manner in which the voter-approval tax
3571		-	rate is calculated to limit the rate of growth of property taxes in
3572		-	the state.".
3573		-	SECTION 89. Subchapter H, Chapter 49, Water Code, is
3574		-	amended by adding Sections 49.23601, 49.23602, and 49.23603 to read
3575		-	as follows:
3576		-	Sec. 49.23601. AUTOMATIC ELECTION TO APPROVE TAX RATE FOR
3577		-	LOW TAX RATE DISTRICTS. (a) In this section, "voter-approval tax
3578		-	rate" means the rate equal to the sum of the following tax rates for
3579		-	the district:
	3062	+	"If operation and maintenance taxes on the average residence
	3063	+	homestead increase by more than 3.5 percent, an election must be
	3064	+	held to determine whether to approve the operation and maintenance
	3065	+	tax rate under Section 49.236(e), Water Code, unless the de minimis
	3066	+	rate exceeds the rollback tax rate and the proposed tax rate is
	3067	+	lower than the de minimis rate."
	3068	+	(d) This subsection applies only to a district that is a
	3069	+	special taxing unit. If the governing body of the [a] district
	3070	+	adopts a combined debt service, operation and maintenance, and
	3071	+	contract tax rate that exceeds the rollback tax rate, [would impose
	3072	+	more than 1.08 times the amount of tax imposed by the district in
	3073	+	the preceding year on a residence homestead appraised at the
	3074	+	average appraised value of a residence homestead in the district in
	3075	+	that year, disregarding any homestead exemption available only to
	3076	+	disabled persons or persons 65 years of age or older, the qualified
	3077	+	voters of the district by petition may require that] an election
	3078	+	must be held to determine whether [or not] to approve [reduce] the
	3079	+	tax rate adopted for the current year [to the rollback tax rate] in
	3080	+	accordance with the procedures provided by Sections 26.07(b)-(g)
	3081	+	[and 26.081], Tax Code. For purposes of Sections 26.07(b)-(g), Tax
	3082	+	Code, and this subsection, the rollback tax rate is the sum of the
	3083	+	following tax rates:
3580	3084		(1) the current year's debt service tax rate;
3581		-	(2) the current year's contract tax rate; and
	3085	+	(2) the current year's [and] contract tax rate; and
	3086	+	(3) [rates plus] the operation and maintenance tax
	3087	+	rate that would impose 1.08 times the amount of the operation and
	3088	+	maintenance tax imposed by the district in the preceding year on a
	3089	+	residence homestead appraised at the average appraised value of a
	3090	+	residence homestead in the district in that year, disregarding any
	3091	+	homestead exemption available only to disabled persons or persons
	3092	+	65 years of age or older.
	3093	+	(e) This subsection applies only to a district that is a
	3094	+	taxing unit other than a special taxing unit. If the governing body
	3095	+	of the district adopts a combined debt service, operation and
	3096	+	maintenance, and contract tax rate that exceeds the greater of the
	3097	+	rollback tax rate or de minimis rate, an election must be held to
	3098	+	determine whether to approve the tax rate adopted for the current
	3099	+	year in accordance with the procedures provided by Sections
	3100	+	26.07(b)-(g), Tax Code. For purposes of Sections 26.07(b)-(g), Tax
	3101	+	Code, and this subsection, the rollback tax rate is the sum of the
	3102	+	following tax rates:
	3103	+	(1) the current year's debt service tax rate;
	3104	+	(2) the current year's contract tax rate;
3582	3105		(3) the operation and maintenance tax rate that would
3583		-	impose 1.08 times the amount of the operation and maintenance tax
	3106	+	impose 1.035 times the amount of the operation and maintenance tax
3584	3107		imposed by the district in the preceding year on a residence
3585	3108		homestead appraised at the average appraised value of a residence
3586	3109		homestead in the district in that year, disregarding any homestead
3587	3110		exemption available only to disabled persons or persons 65 years of
3588		-	age or older.
3589		-	(b) This section applies only to a district the board of
3590		-	which has adopted an operation and maintenance tax rate for the
3591		-	current tax year that is 2.5 cents or less per $100 of taxable
3592		-	value.
3593		-	(c) If the board of a district adopts a combined debt
3594		-	service, contract, and operation and maintenance tax rate that
3595		-	would impose more than 1.08 times the amount of tax imposed by the
3596		-	district in the preceding year on a residence homestead appraised
3597		-	at the average appraised value of a residence homestead in the
3598		-	district in that year, disregarding any homestead exemption
3599		-	available only to disabled persons or persons 65 years of age or
3600		-	older, an election must be held in accordance with the procedures
3601		-	provided by Sections 26.07(c)-(g), Tax Code, to determine whether
3602		-	to approve the adopted tax rate. If the adopted tax rate is not
3603		-	approved at the election, the district's tax rate is the
3604		-	voter-approval tax rate.
3605		-	Sec. 49.23602. AUTOMATIC ELECTION TO APPROVE TAX RATE FOR
3606		-	CERTAIN DEVELOPED DISTRICTS. (a) In this section:
3607		-	(1) "Developed district" means a district that has
3608		-	financed, completed, and issued bonds to pay for all land, works,
3609		-	improvements, facilities, plants, equipment, and appliances
3610		-	necessary to serve at least 95 percent of the projected build-out of
3611		-	the district in accordance with the purposes for its creation or the
3612		-	purposes authorized by the constitution, this code, or any other
3613		-	law.
3614		-	(2) "Mandatory tax election rate" means the rate equal
3615		-	to the sum of the following tax rates for the district:
3616		-	(A) the rate that would impose 1.035 times the
3617		-	amount of tax imposed by the district in the preceding year on a
3618		-	residence homestead appraised at the average appraised value of a
3619		-	residence homestead in the district in that year, disregarding any
3620		-	homestead exemption available only to disabled persons or persons
3621		-	65 years of age or older; and
3622		-	(B) the unused increment rate.
	3111	+	age or older; and
	3112	+	(4) the district's unused increment rate.
	3113	+	(f) Notwithstanding any other provision of this section,
	3114	+	the board of a district that is a taxing unit other than a special
	3115	+	taxing unit may give notice under Subsection (a) and calculate the
	3116	+	rollback tax rate of the district in the manner provided for a
	3117	+	district that is a special taxing unit if any part of the district
	3118	+	is located in an area declared a disaster area during the current
	3119	+	tax year by the governor or by the president of the United States.
	3120	+	The board may continue doing so until the earlier of:
	3121	+	(1) the first tax year in which the total taxable value
	3122	+	of property taxable by the district as shown on the appraisal roll
	3123	+	for the district submitted by the assessor for the district to the
	3124	+	board exceeds the total taxable value of property taxable by the
	3125	+	district on January 1 of the tax year in which the disaster
	3126	+	occurred; or
	3127	+	(2) the fifth tax year after the tax year in which the
	3128	+	disaster occurred.
	3129	+	(g) In this section:
	3130	+	(1) "De minimis rate" and "special taxing unit" have
	3131	+	the meanings assigned by Section 26.012, Tax Code.
	3132	+	(2) "Taxing unit" has the meaning assigned by Section
	3133	+	1.04, Tax Code.
3623	3134		(3) "Unused increment rate" has the meaning assigned
3624	3135		by Section 26.013, Tax Code.
3625		-	(4) "Voter-approval tax rate" means the rate equal to
3626		-	the sum of the following tax rates for the district:
3627		-	(A) the current year's debt service tax rate;
3628		-	(B) the current year's contract tax rate;
3629		-	(C) the operation and maintenance tax rate that
3630		-	would impose 1.035 times the amount of the operation and
3631		-	maintenance tax imposed by the district in the preceding year on a
3632		-	residence homestead appraised at the average appraised value of a
3633		-	residence homestead in the district in that year, disregarding any
3634		-	homestead exemption available only to disabled persons or persons
3635		-	65 years of age or older; and
3636		-	(D) the unused increment rate.
3637		-	(b) This section applies only to a developed district that
3638		-	is not a district described by Section 49.23601.
3639		-	(c) If the board of a district adopts a combined debt
3640		-	service, contract, and operation and maintenance tax rate that
3641		-	exceeds the district's mandatory tax election rate, an election
3642		-	must be held in accordance with the procedures provided by Sections
3643		-	26.07(c)-(g), Tax Code, to determine whether to approve the adopted
3644		-	tax rate. If the adopted tax rate is not approved at the election,
3645		-	the district's tax rate is the voter-approval tax rate.
3646		-	(d) Notwithstanding any other provision of this section,
3647		-	the board of a district may give notice under Section
3648		-	49.236(a)(3)(A), determine whether an election is required to
3649		-	approve the adopted tax rate of the district in the manner provided
3650		-	for a district under Section 49.23601(c), and calculate the
3651		-	voter-approval tax rate of the district in the manner provided for a
3652		-	district under Section 49.23601(a) if any part of the district is
3653		-	located in an area declared a disaster area during the current tax
3654		-	year by the governor or by the president of the United States. The
3655		-	board may continue doing so until the earlier of:
3656		-	(1) the second tax year in which the total taxable
3657		-	value of property taxable by the district as shown on the appraisal
3658		-	roll for the district submitted by the assessor for the district to
3659		-	the board exceeds the total taxable value of property taxable by the
3660		-	district on January 1 of the tax year in which the disaster
3661		-	occurred; or
3662		-	(2) the third tax year after the tax year in which the
3663		-	disaster occurred.
3664		-	Sec. 49.23603. PETITION ELECTION TO REDUCE TAX RATE FOR
3665		-	CERTAIN DISTRICTS. (a) In this section, "voter-approval tax rate"
3666		-	means the rate equal to the sum of the following tax rates for the
3667		-	district:
3668		-	(1) the current year's debt service tax rate;
3669		-	(2) the current year's contract tax rate; and
3670		-	(3) the operation and maintenance tax rate that would
3671		-	impose 1.08 times the amount of the operation and maintenance tax
3672		-	imposed by the district in the preceding year on a residence
3673		-	homestead appraised at the average appraised value of a residence
3674		-	homestead in the district in that year, disregarding any homestead
3675		-	exemption available only to disabled persons or persons 65 years of
3676		-	age or older.
3677		-	(b) This section applies only to a district that is not
3678		-	described by Section 49.23601 or 49.23602.
3679		-	(c) If the board of a district adopts a combined debt
3680		-	service, contract, and operation and maintenance tax rate that
3681		-	would impose more than 1.08 times the amount of tax imposed by the
3682		-	district in the preceding year on a residence homestead appraised
3683		-	at the average appraised value of a residence homestead in the
3684		-	district in that year, disregarding any homestead exemption
3685		-	available only to disabled persons or persons 65 years of age or
3686		-	older, the qualified voters of the district by petition may require
3687		-	that an election be held to determine whether to reduce the tax rate
3688		-	adopted for the current year to the voter-approval tax rate in
3689		-	accordance with the procedures provided by Sections 26.075 and
3690		-	26.081, Tax Code.
3691		-	SECTION 90. Section 6B(f), Chapter 1472, Acts of the 77th
3692		-	Legislature, Regular Session, 2001, is amended to read as follows:
3693		-	(f) The district may provide that payments required by any
3694		-	of the district's contracts, agreements, or leases may be payable
3695		-	from the sale of notes, taxes, or bonds, or any combination of
3696		-	notes, taxes, or bonds, or may be secured by a lien on or a pledge of
3697		-	any available funds, including proceeds of the district's
3698		-	maintenance tax, and may be payable subject to annual appropriation
3699		-	by the district. The district may pledge to impose and may impose a
3700		-	maintenance tax in an amount sufficient to comply with the
3701		-	district's obligations under the district's contracts, leases, and
3702		-	agreements at a maximum aggregate rate not to exceed 10 cents for
3703		-	each $100 valuation of taxable property in the district. Sections
3704		-	26.012, 26.04, 26.05, 26.07, and 26.075 [26.012], Tax Code, do not
3705		-	apply to maintenance taxes levied and collected for payments under
3706		-	a contract, agreement, lease, time warrant, or maintenance note
3707		-	issued or executed under this section.
3708		-	SECTION 91. The following provisions are repealed:
	3136	+	SECTION 71. The following provisions are repealed:
3709	3137		(1) Sections 403.302(m-1) and (n), Government Code;
3710	3138		(2) Section 140.010, Local Government Code;
3711	3139		(3) Section 1063.255, Special District Local Laws
3712	3140		Code;
3713		-	(4) Sections 5.103(e) and (f), 6.412(e), 22.23(c),
3714		-	~~25.19(b-2), and~~ 41A.06(c), Tax Code;
	3141	+	(4) Sections 5.103(e) and (f), 6.412(e), 22.23(c), and
	3142	+	41A.06(c), Tax Code;
3715	3143		(5) Section 49.236, Water Code, as added by Chapter
3716	3144		248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
3717		-	2003;
3718		-	(6) Section 49.236(d), Water Code, as added by Chapter
3719		-	335 (S.B. 392), Acts of the 78th Legislature, Regular Session,
3720	3145		2003; and
3721		-	(7) Section 49.2361, Water Code.
3722		-	SECTION 92. (a) Section 9, Chapter 481 (S.B. 1760), Acts
3723		-	of the 84th Legislature, Regular Session, 2015, which added Section
3724		-	42.23(i), Tax Code, effective January 1, 2020, is repealed.
3725		-	(b) This section takes effect September 1, 2019.
3726		-	SECTION 93. Section 5.041, Tax Code, as amended by this Act,
	3146	+	(6) Section 49.2361, Water Code.
	3147	+	SECTION 72. Section 5.041, Tax Code, as amended by this Act,
3727	3148		applies only to an appraisal review board member appointed to serve
3728	3149		a term of office that begins on or after January 1, 2020.
3729		-	SECTION 94. The comptroller of public accounts shall
	3150	+	SECTION 73. The comptroller of public accounts shall
3730	3151		implement Section 5.043, Tax Code, as added by this Act, as soon as
3731	3152		practicable after January 1, 2020.
3732		-	SECTION 95. Sections 5.05, 5.102, 5.13, and 23.01, Tax
	3153	+	SECTION 74. Sections 5.05, 5.102, 5.13, and 23.01, Tax
3733	3154		Code, as amended by this Act, apply only to the appraisal of
3734	3155		property for ad valorem tax purposes for a tax year beginning on or
3735	3156		after January 1, 2020.
3736		-	SECTION 96. (a) The comptroller of public accounts shall
	3157	+	SECTION 75. (a) The comptroller of public accounts shall
3737	3158		comply with Sections 5.07(f), (g), (h), and (i), Tax Code, as added
3738	3159		by this Act, as soon as practicable after January 1, 2020.
3739	3160		(b) The comptroller of public accounts shall comply with
3740	3161		Section 5.091, Tax Code, as amended by this Act, not later than:
3741	3162		(1) January 1, 2022, with regard to tax rate
3742	3163		information related to a taxing unit located wholly or partly in a
3743	3164		county with a population of 120,000 or more; and
3744	3165		(2) January 1, 2023, with regard to tax rate
3745	3166		information related to a taxing unit located wholly in a county with
3746	3167		a population of less than 120,000.
3747		-	SECTION 97. Section 5.09, Tax Code, as amended by this Act,
	3168	+	SECTION 76. Section 5.09, Tax Code, as amended by this Act,
3748	3169		applies only to information submitted to the comptroller of public
3749	3170		accounts that relates to a tax year beginning on or after January 1,
3750	3171		2020.
3751		-	SECTION 98. The comptroller of public accounts shall
	3172	+	SECTION 77. The comptroller of public accounts shall
3752	3173		prepare and make available the survey and instructions for
3753	3174		completing and submitting the survey required by Section 5.104, Tax
3754	3175		Code, as added by this Act, as soon as practicable after January 1,
3755	3176		2020. An appraisal district is not required to provide the survey
3756	3177		or instructions under a requirement of that section until the
3757	3178		survey and instructions are prepared and made available by the
3758	3179		comptroller of public accounts.
3759		-	SECTION 99. Section 6.41(d-9), Tax Code, as amended by this
	3180	+	SECTION 78. Section 6.41(d-9), Tax Code, as amended by this
3760	3181		Act, applies only to the appointment of appraisal review board
3761	3182		members to terms beginning on or after January 1, 2021.
3762		-	SECTION 100. Section 6.412, Tax Code, as amended by this
3763		-	Act, does not affect the eligibility of a person serving on an
3764		-	appraisal review board immediately before January 1, 2020, to
3765		-	continue to serve on the board for the term to which the member was
3766		-	appointed.
3767		-	SECTION 101. Section 6.42(d), Tax Code, as added by this
3768		-	Act, applies only to a recommendation, determination, decision, or
3769		-	other action by an appraisal review board or a panel of such a board
3770		-	on or after January 1, 2020. A recommendation, determination,
3771		-	decision, or other action by an appraisal review board or a panel of
3772		-	such a board before January 1, 2020, is governed by the law as it
3773		-	existed immediately before that date, and that law is continued in
3774		-	effect for that purpose.
3775		-	SECTION 102. Section 11.24, Tax Code, as amended by this
3776		-	Act, applies only to an exemption authorized by that section that is
3777		-	repealed or reduced on or after January 1, 2020.
3778		-	SECTION 103. Sections 11.4391(a) and 22.23(d), Tax Code, as
3779		-	amended by this Act, apply only to ad valorem taxes imposed for a
3780		-	tax year beginning on or after January 1, 2020.
3781		-	SECTION 104. Sections 25.192 and 25.193, Tax Code, as added
3782		-	by this Act, apply only to a notice for a tax year beginning on or
3783		-	after January 1, 2020.
3784		-	SECTION 105. (a) An appraisal district established in a
3785		-	county with a population of 200,000 or more and each taxing unit
3786		-	located wholly or primarily in such an appraisal district shall
3787		-	comply with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and
3788		-	26.18, Tax Code, as added by this Act, beginning with the 2020 tax
3789		-	year.
	3183	+	SECTION 79. Section 6.412, Tax Code, as amended by this Act,
	3184	+	does not affect the eligibility of a person serving on an appraisal
	3185	+	review board immediately before January 1, 2020, to continue to
	3186	+	serve on the board for the term to which the member was appointed.
	3187	+	SECTION 80. Section 6.42(d), Tax Code, as added by this Act,
	3188	+	applies only to a recommendation, determination, decision, or other
	3189	+	action by an appraisal review board or a panel of such a board on or
	3190	+	after January 1, 2020. A recommendation, determination, decision,
	3191	+	or other action by an appraisal review board or a panel of such a
	3192	+	board before January 1, 2020, is governed by the law as it existed
	3193	+	immediately before that date, and that law is continued in effect
	3194	+	for that purpose.
	3195	+	SECTION 81. Section 22.23(d), Tax Code, as amended by this
	3196	+	Act, applies only to ad valorem taxes imposed for a tax year
	3197	+	beginning on or after January 1, 2020.
	3198	+	SECTION 82. (a) An appraisal district established in a
	3199	+	county with a population of 120,000 or more and each taxing unit
	3200	+	located wholly or partly in such an appraisal district shall comply
	3201	+	with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18,
	3202	+	Tax Code, as added by this Act, beginning with the 2021 tax year.
3790	3203		(b) An appraisal district established in a county with a
3791		-	population of less than ~~200~~,000 and each taxing unit located wholly
3792		-	~~or primarily~~ in such an appraisal district shall comply with
3793		-	~~Sections~~ 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18, Tax
3794		-	~~Code, as~~ added by this Act, beginning with the ~~2021~~ tax year.
3795		-	SECTION ~~106~~. (a) Not later than the 30th day after the date
	3204	+	population of less than 120,000 and each taxing unit located wholly
	3205	+	in such an appraisal district shall comply with Sections
	3206	+	26.04(e-2), 26.05(d-1) and (d-2), 26.17, and 26.18, Tax Code, as
	3207	+	added by this Act, beginning with the 2022 tax year.
	3208	+	SECTION 83. (a) Not later than the 30th day after the date
3796	3209		this section takes effect:
3797	3210		(1) the designated officer or employee of each taxing
3798	3211		unit shall submit to the county assessor-collector for each county
3799	3212		in which all or part of the territory of the taxing unit is located
3800	3213		the worksheets used by the designated officer or employee to
3801	3214		calculate the effective and rollback tax rates of the taxing unit
3802	3215		for the 2015-2019 tax years; and
3803	3216		(2) the county assessor-collector for each county
3804	3217		shall post the worksheets submitted to the county
3805	3218		assessor-collector under Subdivision (1) of this subsection on the
3806	3219		Internet website of the county.
3807	3220		(b) This section takes effect immediately if this Act
3808	3221		receives a vote of two-thirds of all the members elected to each
3809	3222		house, as provided by Section 39, Article III, Texas Constitution.
3810	3223		If this Act does not receive the vote necessary for immediate
3811	3224		effect, this section takes effect on the 91st day after the last day
3812	3225		of the legislative session.
3813		-	SECTION ~~107~~. A taxing unit that does not own, operate, or
	3226	+	SECTION 84. A taxing unit that does not own, operate, or
3814	3227		control an Internet website is not required to comply with Sections
3815	3228		26.05(b)(2) and 26.065(b), Tax Code, as amended by this Act, until
3816	3229		the first tax year in which the taxing unit is required by law to
3817	3230		maintain or have access to an Internet website.
3818		-	SECTION 108. Section 33.08(b), Tax Code, as amended by this
3819		-	Act, applies only to taxes that become delinquent on or after
3820		-	January 1, 2020. Taxes that become delinquent before that date are
3821		-	governed by the law as it existed immediately before that date, and
3822		-	that law is continued in effect for that purpose.
3823		-	SECTION 109. Section 41.03(a), Tax Code, as amended by this
	3231	+	SECTION 85. Section 41.03(a), Tax Code, as amended by this
3824	3232		Act, applies only to a challenge under Chapter 41, Tax Code, for
3825	3233		which a challenge petition is filed on or after January 1, 2020. A
3826	3234		challenge under Chapter 41, Tax Code, for which a challenge
3827	3235		petition was filed before January 1, 2020, is governed by the law in
3828	3236		effect on the date the challenge petition was filed, and the former
3829	3237		law is continued in effect for that purpose.
3830		-	SECTION ~~110~~. Sections 41.45 and 41.66(k), Tax Code, as
	3238	+	SECTION 86. Sections 41.45 and 41.66(k), Tax Code, as
3831	3239		amended by this Act, and Section 41.66(k-1), Tax Code, as added by
3832	3240		this Act, apply only to a protest filed under Chapter 41, Tax Code,
3833	3241		on or after January 1, 2021. A protest filed under that chapter
3834	3242		before January 1, 2021, is governed by the law in effect on the date
3835	3243		the protest was filed, and the former law is continued in effect for
3836	3244		that purpose.
3837		-	SECTION ~~111~~. Sections 41.46, 41.461, 41.47, 41.66(h), (i),
	3245	+	SECTION 87. Sections 41.46, 41.461, 41.47, 41.66(h), (i),
3838	3246		and (j), and 41.67, Tax Code, as amended by this Act, and Sections
3839		-	41.66(j-1)~~, (j-2),~~ and (p), Tax Code, as added by this Act, apply
3840		-	~~only to a~~ protest for which the notice of protest was filed by a
3841		-	~~property~~ owner or the designated agent of the owner with the
3842		-	~~appraisal review~~ board established for an appraisal district on or
3843		-	~~after January 1,~~ 2020.
3844		-	SECTION ~~112~~. Section 41.71, Tax Code, as amended by this
3845		-	~~Act,~~ applies only to a hearing on a protest under Chapter 41, Tax
3846		-	~~Code,~~ that is scheduled on or after January 1, 2020. A hearing on a
	3247	+	41.66(j-1) and (p), Tax Code, as added by this Act, apply only to a
	3248	+	protest for which the notice of protest was filed by a property
	3249	+	owner or the designated agent of the owner with the appraisal review
	3250	+	board established for an appraisal district on or after January 1,
	3251	+	2020.
	3252	+	SECTION 88. Section 41.71, Tax Code, as amended by this Act,
	3253	+	applies only to a hearing on a protest under Chapter 41, Tax Code,
	3254	+	that is scheduled on or after January 1, 2020. A hearing on a
3847	3255		protest under Chapter 41, Tax Code, that is scheduled before
3848	3256		January 1, 2020, is governed by the law in effect on the date the
3849	3257		hearing was scheduled, and that law is continued in effect for that
3850	3258		purpose.
3851		-	SECTION ~~113~~. ~~Sections 41A.03 and~~ 41A.07, Tax Code, as
3852		-	~~amended by this~~ Act, ~~apply~~ only to a request for binding arbitration
3853		-	~~received by~~ the comptroller of public accounts from an appraisal
3854		-	~~district on or~~ after January 1, 2020.
3855		-	SECTION ~~114~~. (a) A person who immediately before January
3856		-	1, 2020, serves as an arbitrator in binding arbitrations of appeals
3857		-	of appraisal review board orders must meet the requirements of
3858		-	~~Section~~ 41A.06(b)(3), Tax Code, as added by this Act, not later than
3859		-	~~the~~ 120th day after the date the comptroller of public accounts
3860		-	~~begins~~ to provide the training required under Section 5.043, Tax
3861		-	~~Code, as~~ added by this Act.
	3259	+	SECTION 89. Section 41A.07, Tax Code, as amended by this
	3260	+	Act, applies only to a request for binding arbitration received by
	3261	+	the comptroller of public accounts from an appraisal district on or
	3262	+	after January 1, 2020.
	3263	+	SECTION 90. (a) A person who immediately before January 1,
	3264	+	2020, serves as an arbitrator in binding arbitrations of appeals of
	3265	+	appraisal review board orders must meet the requirements of Section
	3266	+	41A.06(b)(3), Tax Code, as added by this Act, not later than the
	3267	+	120th day after the date the comptroller of public accounts begins
	3268	+	to provide the training required under Section 5.043, Tax Code, as
	3269	+	added by this Act.
3862	3270		(b) This Act does not prohibit a person who is serving as an
3863	3271		arbitrator on January 1, 2020, from renewing the person's agreement
3864	3272		with the comptroller of public accounts to serve as an arbitrator if
3865	3273		the person has the qualifications required for an arbitrator under
3866	3274		the Tax Code as amended by this Act.
3867		-	SECTION 115. Section 42.081, Tax Code, as added by this Act,
3868		-	applies only to an appeal under Chapter 42, Tax Code, that is filed
3869		-	on or after January 1, 2020.
3870		-	SECTION 116. The first tax year that may be considered for
	3275	+	SECTION 91. The first tax year that may be considered for
3871	3276		purposes of the condition to the applicability of Section
3872	3277		403.302(k-1), Government Code, as added by this Act, that the
3873	3278		comptroller of public accounts has determined in a study under
3874	3279		Section 403.302 of that code that a school district's local value as
3875	3280		determined by the appraisal district that appraises property for
3876	3281		the school district is not valid for three consecutive years is the
3877	3282		2020 tax year.
3878		-	SECTION 117. Section 49.057, Water Code, as amended by this
3879		-	Act, applies only to a budget adopted on or after January 1, 2020.
3880		-	SECTION 118. (a) Not later than the 30th day after the date
	3283	+	SECTION 92. (a) Not later than the 30th day after the date
3881	3284		this section takes effect, the comptroller of public accounts shall
3882	3285		provide a written notice to each appraisal district of:
3883	3286		(1) the deadline for complying with each new
3884	3287		requirement, duty, or function imposed by this Act on an appraisal
3885	3288		district or taxing unit; and
3886	3289		(2) any change made by this Act to the deadline for
3887	3290		complying with an existing requirement, duty, or function of an
3888	3291		appraisal district or taxing unit.
3889	3292		(b) As soon as practicable after receipt of the notice
3890	3293		provided by the comptroller of public accounts under Subsection (a)
3891	3294		of this section, the chief appraiser of an appraisal district shall
3892	3295		forward the notice to each assessor for a taxing unit located in the
3893	3296		appraisal district.
3894	3297		(c) This section takes effect immediately if this Act
3895	3298		receives a vote of two-thirds of all the members elected to each
3896	3299		house, as provided by Section 39, Article III, Texas Constitution.
3897	3300		If this Act does not receive the vote necessary for immediate
3898	3301		effect, this section takes effect on the 91st day after the last day
3899	3302		of the legislative session.
3900		-	SECTION 119. (a) In this section:
3901		-	(1) "Compensation" includes a salary, wage, insurance
3902		-	benefit, retirement benefit, or similar benefit an employee
3903		-	receives as a condition of employment.
3904		-	(2) "First responder" has the meaning assigned by
3905		-	Section 504.019, Labor Code.
3906		-	(3) "Taxing unit" has the meaning assigned by Section
3907		-	1.04, Tax Code.
3908		-	(b) This section applies only to the fiscal year of a taxing
3909		-	unit that begins in 2020.
3910		-	(c) The governing body of a taxing unit may not adopt a
3911		-	budget for a fiscal year or take any other action that has the
3912		-	effect of decreasing the total compensation to which a first
3913		-	responder employed by the taxing unit was entitled in the preceding
3914		-	fiscal year of the taxing unit.
3915		-	SECTION 120. This Act takes effect only if H.B. 3, 86th
	3303	+	SECTION 93. This Act takes effect only if H.B. 3, 86th
3916	3304		Legislature, Regular Session, 2019, becomes law. If H.B. 3, 86th
3917	3305		Legislature, Regular Session, 2019, does not become law, this Act
3918	3306		has no effect.
3919		-	SECTION ~~121~~. (a) Except as otherwise provided by this Act,
	3307	+	SECTION 94. (a) Except as otherwise provided by this Act,
3920	3308		this Act takes effect January 1, 2020.
3921	3309		(b) The following provisions take effect September 1, 2020:
3922	3310		(1) Sections 6.41(b) and (d-9), Tax Code, as amended
3923	3311		by this Act;
3924	3312		(2) Sections 6.41(b-1), (b-2), and (d-10), Tax Code,
3925	3313		as added by this Act;
3926	3314		(3) Section 6.414(d), Tax Code, as amended by this
3927	3315		Act;
3928	3316		(4) Section 6.425, Tax Code, as added by this Act;
3929	3317		(5) Section 41.44(d), Tax Code, as amended by this
3930	3318		Act;
3931	3319		(6) Section 41.45(d), Tax Code, as amended by this
3932	3320		Act;
3933	3321		(7) Sections 41.45(d-1), (d-2), and (d-3), Tax Code,
3934	3322		as added by this Act;
3935	3323		(8) Section 41.66(k), Tax Code, as amended by this
3936	3324		Act; and
3937	3325		(9) Section 41.66(k-1), Tax Code, as added by this
3938	3326		Act.
3939	3327		(c) The following provisions take effect January 1, 2021:
3940	3328		(1) Sections 25.19(b-3) and (b-4), Tax Code, as added
3941	3329		by this Act;
3942		-	(2) Sections 26.04(d-1), (d-2), (d-3), ~~and~~ (e-5), ~~Tax~~
3943		-	Code, as added by this Act;
	3330	+	(2) Sections 26.04(d-1), (d-2), (d-3), (e-2), (e-3),
	3331	+	(e-4), and (e-5), Tax Code, as added by this Act;
3944	3332		(3) Sections 26.04(e-1) and (g), Tax Code, as amended
	3333	+	by this Act;
	3334	+	(4) Sections 26.05(d-1) and (d-2), Tax Code, as added
3945	3335		by this Act; and
3946		-	(4) Section 26.05(e), Tax Code, as amended by this
	3336	+	(5) Section 26.05(e), Tax Code, as amended by this
3947	3337		Act.
3948	3338		(d) Sections 25.19(b) and (i), Tax Code, as amended by this
3949	3339		Act, take effect January 1, 2022.
3950		-	______________________________ ______________________________
3951		-	President of the Senate Speaker of the House
3952		-	I hereby certify that S.B. No. 2 passed the Senate on
3953		-	April 15, 2019, by the following vote: Yeas 18, Nays 12, one
3954		-	present not voting; May 7, 2019, Senate refused to concur in House
3955		-	amendments and requested appointment of Conference Committee;
3956		-	May 10, 2019, House granted request of the Senate; May 25, 2019,
3957		-	Senate adopted Conference Committee Report by the following
3958		-	vote: Yeas 21, Nays 9.
3959		-	______________________________
3960		-	Secretary of the Senate
3961		-	I hereby certify that S.B. No. 2 passed the House, with
3962		-	amendments, on May 1, 2019, by the following vote: Yeas 109,
3963		-	Nays 36, two present not voting; May 10, 2019, House granted
3964		-	request of the Senate for appointment of Conference Committee;
3965		-	May 25, 2019, House adopted Conference Committee Report by the
3966		-	following vote: Yeas 88, Nays 50.
3967		-	______________________________
3968		-	Chief Clerk of the House
3969		-	Approved:
3970		-	______________________________
3971		-	Date
3972		-	______________________________
3973		-	Governor