Texas 2019 - 86th Regular

Texas Senate Bill SB600 Compare Versions

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

Old	New	Differences
1	1	86R1265 SMH-D
2	2	By: Buckingham S.B. No. 600
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to voter approval of a proposed ad valorem tax rate that
8	8	exceeds the rollback tax rate, including the date for holding the
9	9	election to approve the tax rate; making conforming changes.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 11.4391(a), Tax Code, is amended to read
12	12	as follows:
13	13	(a) The chief appraiser shall accept and approve or deny an
14	14	application for an exemption for freeport goods under Section
15	15	11.251 after the deadline for filing it has passed if it is filed
16	16	not later than June 1 [15].
17	17	SECTION 2. Sections 22.23(a) and (b), Tax Code, are amended
18	18	to read as follows:
19	19	(a) Rendition statements and property reports must be
20	20	delivered to the chief appraiser after January 1 and not later than
21	21	April 1 [15], except as provided by Section 22.02.
22	22	(b) On written request by the property owner, the chief
23	23	appraiser shall extend a deadline for filing a rendition statement
24	24	or property report to a date not later than May 1 [15]. The chief
25	25	appraiser may further extend the deadline an additional 15 days
26	26	upon good cause shown in writing by the property owner.
27	27	SECTION 3. Sections 25.19(a) and (g), Tax Code, are amended
28	28	to read as follows:
29	29	(a) By April 15 [1] or as soon thereafter as practicable [if
30	30	the property is a single-family residence that qualifies for an
31	31	exemption under Section 11.13, or by May 1 or as soon thereafter as
32	32	practicable in connection with any other property], the chief
33	33	appraiser shall deliver a clear and understandable written notice
34	34	to a property owner of the appraised value of the property owner's
35	35	property if:
36	36	(1) the appraised value of the property is greater
37	37	than it was in the preceding year;
38	38	(2) the appraised value of the property is greater
39	39	than the value rendered by the property owner;
40	40	(3) the property was not on the appraisal roll in the
41	41	preceding year; or
42	42	(4) an exemption or partial exemption approved for the
43	43	property for the preceding year was canceled or reduced for the
44	44	current year.
45	45	(g) By April 15 [1] or as soon thereafter as practicable [if
46	46	the property is a single-family residence that qualifies for an
47	47	exemption under Section 11.13, or by May 1 or as soon thereafter as
48	48	practicable in connection with any other property], the chief
49	49	appraiser shall deliver a written notice to the owner of each
50	50	property not included in a notice required to be delivered under
51	51	Subsection (a), if the property was reappraised in the current tax
52	52	year, if the ownership of the property changed during the preceding
53	53	year, or if the property owner or the agent of a property owner
54	54	authorized under Section 1.111 makes a written request for the
55	55	notice. The chief appraiser shall separate real from personal
56	56	property and include in the notice for each property:
57	57	(1) the appraised value of the property in the
58	58	preceding year;
59	59	(2) the appraised value of the property for the
60	60	current year and the kind of each partial exemption, if any,
61	61	approved for the current year;
62	62	(3) a detailed explanation of the time and procedure
63	63	for protesting the value; and
64	64	(4) the date and place the appraisal review board will
65	65	begin hearing protests.
66	66	SECTION 4. Section 25.22(a), Tax Code, is amended to read as
67	67	follows:
68	68	(a) By May 1 [15] or as soon thereafter as practicable, the
69	69	chief appraiser shall submit the completed appraisal records to the
70	70	appraisal review board for review and determination of protests.
71	71	However, the chief appraiser may not submit the records until the
72	72	chief appraiser has delivered the notices required by Subsection
73	73	(d) of Section 11.45, Subsection (d) of Section 23.44, Subsection
74	74	(d) of Section 23.57, Subsection (d) of Section 23.79, Subsection
75	75	(d) of Section 23.85, Subsection (d) of Section 23.95, Subsection
76	76	(d) of Section 23.9805, and Section 25.19.
77	77	SECTION 5. Sections 26.01(a) and (e), Tax Code, are amended
78	78	to read as follows:
79	79	(a) By July 10 [25], the chief appraiser shall prepare and
80	80	certify to the assessor for each taxing unit participating in the
81	81	district that part of the appraisal roll for the district that lists
82	82	the property taxable by the unit. The part certified to the
83	83	assessor is the appraisal roll for the unit. The chief appraiser
84	84	shall consult with the assessor for each taxing unit and notify each
85	85	unit in writing by April 1 of the form in which the roll will be
86	86	provided to each unit.
87	87	(e) Except as provided by Subsection (f), not later than May
88	88	15 [April 30], the chief appraiser shall prepare and certify to the
89	89	assessor for each county, municipality, and school district
90	90	participating in the appraisal district an estimate of the taxable
91	91	value of property in that taxing unit. The chief appraiser shall
92	92	assist each county, municipality, and school district in
93	93	determining values of property in that taxing unit for the taxing
94	94	unit's budgetary purposes.
95	95	SECTION 6. Sections 26.04(b) and (e), Tax Code, are amended
96	96	to read as follows:
97	97	(b) The assessor shall submit the appraisal roll for the
98	98	unit showing the total appraised, assessed, and taxable values of
99	99	all property and the total taxable value of new property to the
100	100	governing body of the unit by July 15 [August 1] or as soon
101	101	thereafter as practicable. By July 15 [August 1] or as soon
102	102	thereafter as practicable, the taxing unit's collector shall
103	103	certify [an estimate of] the anticipated collection rate for the
104	104	current year to the governing body. If the collector certified an
105	105	anticipated collection rate in the preceding year and the actual
106	106	collection rate in that year exceeded the anticipated rate, the
107	107	collector shall also certify the amount of debt taxes collected in
108	108	excess of the anticipated amount in the preceding year.
109	109	(e) By July 22 [August 7] or as soon thereafter as
110	110	practicable, the designated officer or employee shall submit the
111	111	rates to the governing body. By July 27, the designated officer or
112	112	employee [He] shall deliver by mail to each property owner in the
113	113	unit or publish in a newspaper in the form prescribed by the
114	114	comptroller:
115	115	(1) the effective tax rate, the rollback tax rate, and
116	116	an explanation of how they were calculated;
117	117	(2) the estimated amount of interest and sinking fund
118	118	balances and the estimated amount of maintenance and operation or
119	119	general fund balances remaining at the end of the current fiscal
120	120	year that are not encumbered with or by corresponding existing debt
121	121	obligation;
122	122	(3) a schedule of the unit's debt obligations showing:
123	123	(A) the amount of principal and interest that
124	124	will be paid to service the unit's debts in the next year from
125	125	property tax revenue, including payments of lawfully incurred
126	126	contractual obligations providing security for the payment of the
127	127	principal of and interest on bonds and other evidences of
128	128	indebtedness issued on behalf of the unit by another political
129	129	subdivision and, if the unit is created under Section 52, Article
130	130	III, or Section 59, Article XVI, Texas Constitution, payments on
131	131	debts that the unit anticipates to incur in the next calendar year;
132	132	(B) the amount by which taxes imposed for debt
133	133	are to be increased because of the unit's anticipated collection
134	134	rate; and
135	135	(C) the total of the amounts listed in Paragraphs
136	136	(A)-(B), less any amount collected in excess of the previous year's
137	137	anticipated collections certified as provided in Subsection (b);
138	138	(4) the amount of additional sales and use tax revenue
139	139	anticipated in calculations under Section 26.041;
140	140	(5) a statement that the adoption of a tax rate equal
141	141	to the effective tax rate would result in an increase or decrease,
142	142	as applicable, in the amount of taxes imposed by the unit as
143	143	compared to last year's levy, and the amount of the increase or
144	144	decrease;
145	145	(6) in the year that a taxing unit calculates an
146	146	adjustment under Subsection (i) or (j), a schedule that includes
147	147	the following elements:
148	148	(A) the name of the unit discontinuing the
149	149	department, function, or activity;
150	150	(B) the amount of property tax revenue spent by
151	151	the unit listed under Paragraph (A) to operate the discontinued
152	152	department, function, or activity in the 12 months preceding the
153	153	month in which the calculations required by this chapter are made;
154	154	and
155	155	(C) the name of the unit that operates a distinct
156	156	department, function, or activity in all or a majority of the
157	157	territory of a taxing unit that has discontinued operating the
158	158	distinct department, function, or activity; and
159	159	(7) in the year following the year in which a taxing
160	160	unit raised its rollback tax rate as required by Subsection (j), a
161	161	schedule that includes the following elements:
162	162	(A) the amount of property tax revenue spent by
163	163	the unit to operate the department, function, or activity for which
164	164	the taxing unit raised the rollback tax rate as required by
165	165	Subsection (j) for the 12 months preceding the month in which the
166	166	calculations required by this chapter are made; and
167	167	(B) the amount published by the unit in the
168	168	preceding tax year under Subdivision (6)(B).
169	169	SECTION 7. Section 26.05(a), Tax Code, is amended to read as
170	170	follows:
171	171	(a) The governing body of each taxing unit[, before the
172	172	later of September 30 or the 60th day after the date the certified
173	173	appraisal roll is received by the taxing unit,] shall adopt a tax
174	174	rate for the current tax year and shall notify the assessor for the
175	175	unit of the rate adopted. The governing body must adopt a tax rate
176	176	before the later of September 30 or the 60th day after the date the
177	177	certified appraisal roll is received by the taxing unit, except
178	178	that the governing body must adopt a tax rate that exceeds the
179	179	rollback tax rate before August 15. The tax rate consists of two
180	180	components, each of which must be approved separately. The
181	181	components are:
182	182	(1) for a taxing unit other than a school district, the
183	183	rate that, if applied to the total taxable value, will impose the
184	184	total amount published under Section 26.04(e)(3)(C), less any
185	185	amount of additional sales and use tax revenue that will be used to
186	186	pay debt service, or, for a school district, the rate calculated
187	187	under Section 44.004(c)(5)(A)(ii)(b), Education Code; and
188	188	(2) the rate that, if applied to the total taxable
189	189	value, will impose the amount of taxes needed to fund maintenance
190	190	and operation expenditures of the unit for the next year.
191	191	SECTION 8. Section 26.06(e), Tax Code, is amended to read as
192	192	follows:
193	193	(e) The meeting to vote on the tax increase may not be
194	194	earlier than the third day or later than the seventh [14th] day
195	195	after the date of the second public hearing. The meeting must be
196	196	held inside the boundaries of the taxing unit in a publicly owned
197	197	building or, if a suitable publicly owned building is not
198	198	available, in a suitable building to which the public normally has
199	199	access. If the governing body does not adopt a tax rate that
200	200	exceeds the lower of the rollback tax rate or the effective tax rate
201	201	by the seventh [14th] day, it must give a new notice under
202	202	Subsection (d) before it may adopt a rate that exceeds the lower of
203	203	the rollback tax rate or the effective tax rate.
204	204	SECTION 9. The heading to Section 26.08, Tax Code, is
205	205	amended to read as follows:
206	206	Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES].
207	207	SECTION 10. Section 26.08, Tax Code, is amended by amending
208	208	Subsections (a), (b), (d), (d-1), (d-2), (e), and (h) and adding
209	209	Subsection (r) to read as follows:
210	210	(a) If the governing body of a taxing unit [school district]
211	211	adopts a tax rate that exceeds the taxing unit's [district's]
212	212	rollback tax rate, the registered voters of the taxing unit
213	213	[district] at an election held for that purpose must determine
214	214	whether to approve the adopted tax rate. When increased
215	215	expenditure of money by a taxing unit [school district] is
216	216	necessary to respond to a disaster, including a tornado, hurricane,
217	217	flood, or other calamity, but not including a drought, that has
218	218	impacted the taxing unit [a school district] and the governor has
219	219	requested federal disaster assistance for the area in which the
220	220	taxing unit [school district] is located, an election is not
221	221	required under this section to approve the tax rate adopted by the
222	222	governing body for the year following the year in which the disaster
223	223	occurs.
224	224	(b) The governing body shall order that the election be held
225	225	in the taxing unit [school district] on the uniform election date
226	226	prescribed by [a date not less than 30 or more than 90 days after the
227	227	day on which it adopted the tax rate.] Section 41.001, Election
228	228	Code, that occurs in November of the applicable tax year. The order
229	229	calling the election may not be issued later than August 15 [does
230	230	not apply to the election unless a date specified by that section
231	231	falls within the time permitted by this section]. At the election,
232	232	the ballots shall be prepared to permit voting for or against the
233	233	proposition: "Approving the ad valorem tax rate of $_____ per $100
234	234	valuation in (name of taxing unit [school district]) for the
235	235	current year, a rate that is $_____ higher per $100 valuation than
236	236	the [school district] rollback tax rate of (name of taxing unit),
237	237	for the purpose of (description of purpose of increase)." The
238	238	ballot proposition must include the adopted tax rate and the
239	239	difference between that rate and the rollback tax rate in the
240	240	appropriate places.
241	241	(d) If the proposition is not approved as provided by
242	242	Subsection (c), the governing body may not adopt a tax rate for the
243	243	taxing unit [school district] for the current year that exceeds the
244	244	taxing unit's [school district's] rollback tax rate.
245	245	(d-1) If, after tax bills for the taxing unit [school
246	246	district] have been mailed, a proposition to approve the taxing
247	247	unit's [school district's] adopted tax rate is not approved by the
248	248	voters of the taxing unit [district] at an election held under this
249	249	section, on subsequent adoption of a new tax rate by the governing
250	250	body of the taxing unit [district], the assessor for the taxing unit
251	251	[school] shall prepare and mail corrected tax bills. The assessor
252	252	shall include with each bill a brief explanation of the reason for
253	253	and effect of the corrected bill. The date on which the taxes
254	254	become delinquent for the year is extended by a number of days equal
255	255	to the number of days between the date the first tax bills were sent
256	256	and the date the corrected tax bills were sent.
257	257	(d-2) If a property owner pays taxes calculated using the
258	258	originally adopted tax rate of the taxing unit [school district]
259	259	and the proposition to approve the adopted tax rate is not approved
260	260	by the voters, the taxing unit [school district] shall refund the
261	261	difference between the amount of taxes paid and the amount due under
262	262	the subsequently adopted rate if the difference between the amount
263	263	of taxes paid and the amount due under the subsequent rate is $1 or
264	264	more. If the difference between the amount of taxes paid and the
265	265	amount due under the subsequent rate is less than $1, the taxing
266	266	unit [school district] shall refund the difference on request of
267	267	the taxpayer. An application for a refund of less than $1 must be
268	268	made within 90 days after the date the refund becomes due or the
269	269	taxpayer forfeits the right to the refund.
270	270	(e) For purposes of this section, local tax funds dedicated
271	271	to a junior college district under Section 45.105(e), Education
272	272	Code, shall be eliminated from the calculation of the tax rate
273	273	adopted by the governing body of a [the] school district. However,
274	274	the funds dedicated to the junior college district are subject to
275	275	Section 26.085.
276	276	(h) For purposes of this section, increases in taxable
277	277	values and tax levies occurring within a reinvestment zone under
278	278	Chapter 311 (Tax Increment Financing Act), in which a school [the]
279	279	district is a participant, shall be eliminated from the calculation
280	280	of the tax rate adopted by the governing body of the school
281	281	district.
282	282	(r) Except as otherwise expressly provided by law, this
283	283	section does not apply to a tax imposed by a taxing unit if a
284	284	provision of an uncodified local or special law enacted by the 86th
285	285	Legislature, Regular Session, 2019, or by an earlier legislature
286	286	provides that former Section 26.07 does not apply to a tax imposed
287	287	by the taxing unit.
288	288	SECTION 11. Section 26.16(d), Tax Code, is amended to read
289	289	as follows:
290	290	(d) The county assessor-collector shall post immediately
291	291	below the table prescribed by Subsection (c) the following
292	292	statement:
293	293	"The county is providing this table of property tax rate
294	294	information as a service to the residents of the county. Each
295	295	individual taxing unit is responsible for calculating the property
296	296	tax rates listed in this table pertaining to that taxing unit and
297	297	providing that information to the county.
298	298	"The adopted tax rate is the tax rate adopted by the governing
299	299	body of a taxing unit.
300	300	"The maintenance and operations rate is the component of the
301	301	adopted tax rate of a taxing unit that will impose the amount of
302	302	taxes needed to fund maintenance and operation expenditures of the
303	303	unit for the following year.
304	304	"The debt rate is the component of the adopted tax rate of a
305	305	taxing unit that will impose the amount of taxes needed to fund the
306	306	unit's debt service for the following year.
307	307	"The effective tax rate is the tax rate that would generate
308	308	the same amount of revenue in the current tax year as was generated
309	309	by a taxing unit's adopted tax rate in the preceding tax year from
310	310	property that is taxable in both the current tax year and the
311	311	preceding tax year.
312	312	"The effective maintenance and operations rate is the tax
313	313	rate that would generate the same amount of revenue for maintenance
314	314	and operations in the current tax year as was generated by a taxing
315	315	unit's maintenance and operations rate in the preceding tax year
316	316	from property that is taxable in both the current tax year and the
317	317	preceding tax year.
318	318	"The rollback tax rate is the highest tax rate a taxing unit
319	319	may adopt before requiring voter approval at an election. An [In
320	320	the case of a taxing unit other than a school district, the voters
321	321	by petition may require that a rollback election be held if the unit
322	322	adopts a tax rate in excess of the unit's rollback tax rate. In the
323	323	case of a school district, an] election will automatically be held
324	324	if a taxing unit [the district] wishes to adopt a tax rate in excess
325	325	of the unit's [district's] rollback tax rate."
326	326	SECTION 12. Sections 31.12(a) and (b), Tax Code, are
327	327	amended to read as follows:
328	328	(a) If a refund of a tax provided by Section 11.431(b),
329	329	26.08(d-2) [26.07(g)], 26.15(f), 31.11, 31.111, or 31.112 is paid
330	330	on or before the 60th day after the date the liability for the
331	331	refund arises, no interest is due on the amount refunded. If not
332	332	paid on or before that 60th day, the amount of the tax to be refunded
333	333	accrues interest at a rate of one percent for each month or part of a
334	334	month that the refund is unpaid, beginning with the date on which
335	335	the liability for the refund arises.
336	336	(b) For purposes of this section, liability for a refund
337	337	arises:
338	338	(1) if the refund is required by Section 11.431(b), on
339	339	the date the chief appraiser notifies the collector for the unit of
340	340	the approval of the late homestead exemption;
341	341	(2) if the refund is required by Section 26.08(d-2)
342	342	[26.07(g)], on the date the results of the election to reduce the
343	343	tax rate are certified;
344	344	(3) if the refund is required by Section 26.15(f):
345	345	(A) for a correction to the tax roll made under
346	346	Section 26.15(b), on the date the change in the tax roll is
347	347	certified to the assessor for the taxing unit under Section 25.25;
348	348	or
349	349	(B) for a correction to the tax roll made under
350	350	Section 26.15(c), on the date the change in the tax roll is ordered
351	351	by the governing body of the taxing unit;
352	352	(4) if the refund is required by Section 31.11, on the
353	353	date the auditor for the taxing unit determines that the payment was
354	354	erroneous or excessive or, if the amount of the refund exceeds the
355	355	applicable amount specified by Section 31.11(a), on the date the
356	356	governing body of the unit approves the refund;
357	357	(5) if the refund is required by Section 31.111, on the
358	358	date the collector for the taxing unit determines that the payment
359	359	was erroneous; or
360	360	(6) if the refund is required by Section 31.112, on the
361	361	date required by Section 31.112(d) or (e), as applicable.
362	362	SECTION 13. Section 33.08(b), Tax Code, is amended to read
363	363	as follows:
364	364	(b) The governing body of the taxing unit or appraisal
365	365	district, in the manner required by law for official action, may
366	366	provide that taxes that become delinquent on or after June 1 under
367	367	Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,
368	368	31.04, or 42.42 incur an additional penalty to defray costs of
369	369	collection. The amount of the penalty may not exceed the amount of
370	370	the compensation specified in the applicable contract with an
371	371	attorney under Section 6.30 to be paid in connection with the
372	372	collection of the delinquent taxes.
373	373	SECTION 14. Section 41.12(a), Tax Code, is amended to read
374	374	as follows:
375	375	(a) By July 5 [20], the appraisal review board shall:
376	376	(1) hear and determine all or substantially all timely
377	377	filed protests;
378	378	(2) determine all timely filed challenges;
379	379	(3) submit a list of its approved changes in the
380	380	records to the chief appraiser; and
381	381	(4) approve the records.
382	382	SECTION 15. Section 130.016(b), Education Code, is amended
383	383	to read as follows:
384	384	(b) If the board of trustees of an independent school
385	385	district that divests itself of the management, control, and
386	386	operation of a junior college district under this section or under
387	387	Section 130.017 [of this code] was authorized by [Subsection (e)
388	388	of] Section 45.105(e) or under former Section 20.48(e) [20.48 of
389	389	this code] to dedicate a portion of its tax levy to the junior
390	390	college district before the divestment, the junior college district
391	391	may levy an ad valorem tax from and after the divestment. In the
392	392	first two years in which the junior college district levies an ad
393	393	valorem tax, the tax rate adopted by the governing body may not
394	394	exceed the rate that, if applied to the total taxable value
395	395	submitted to the governing body under Section 26.04, Tax Code,
396	396	would impose an amount equal to the amount of taxes of the school
397	397	district dedicated to the junior college under [Subsection (e) of]
398	398	Section 45.105(e) or former Section 20.48(e) [20.48 of this code]
399	399	in the last dedication before the divestment. In subsequent years,
400	400	the tax rate of the junior college district is subject to Section
401	401	26.08 [26.07], Tax Code.
402	402	SECTION 16. Sections 281.124(d) and (e), Health and Safety
403	403	Code, are amended to read as follows:
404	404	(d) If a majority of the votes cast in the election favor the
405	405	proposition, the tax rate for the specified tax year is the rate
406	406	approved by the voters, and that rate is not subject to [a rollback
407	407	election under] Section 26.08 [26.07], Tax Code. The board shall
408	408	adopt the tax rate as provided by Chapter 26, Tax Code.
409	409	(e) If the proposition is not approved as provided by
410	410	Subsection (d) [(c)], the board may not adopt a tax rate for the
411	411	district for the specified tax year that exceeds the rate that was
412	412	not approved, and Section 26.08 [26.07], Tax Code, applies to the
413	413	adopted rate if that rate exceeds the district's rollback tax rate.
414	414	SECTION 17. Section 140.010(e), Local Government Code, is
415	415	amended to read as follows:
416	416	(e) A county or municipality that proposes a property tax
417	417	rate that exceeds the lower of the effective tax rate or the
418	418	rollback tax rate shall provide the following notice:
419	419	"NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX
420	420	RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)
421	421	"A tax rate of $_____ per $100 valuation has been proposed for
422	422	adoption by the governing body of (insert name of county or
423	423	municipality). This rate exceeds the lower of the effective or
424	424	rollback tax rate, and state law requires that two public hearings
425	425	be held by the governing body before adopting the proposed tax
426	426	rate. The governing body of (insert name of county or
427	427	municipality) proposes to use revenue attributable to the tax rate
428	428	increase for the purpose of (description of purpose of increase).
429	429	PROPOSED TAX RATE$______ per $100
430	430	PRECEDING YEAR'S TAX RATE$______ per $100
431	431	EFFECTIVE TAX RATE$______ per $100
432	432	ROLLBACK TAX RATE$______ per $100
433	433	"The effective tax rate is the total tax rate needed to raise the
434	434	same amount of property tax revenue for (insert name of county or
435	435	municipality) from the same properties in both the (insert
436	436	preceding tax year) tax year and the (insert current tax year) tax
437	437	year.
438	438	"The rollback tax rate is the highest tax rate that (insert name of
439	439	county or municipality) may adopt without holding [before voters
440	440	are entitled to petition for] an election to ratify [limit] the rate
441	441	[that may be approved to the rollback rate].
442	442	"YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
443	443	FOLLOWS:
444	444	property tax amount = (rate) x (taxable value of your property) /
445	445	100
446	446	"For assistance or detailed information about tax calculations,
447	447	please contact:
448	448	(insert name of county or municipal tax assessor-collector)
449	449	(insert name of county or municipality) tax
450	450	assessor-collector
451	451	(insert address)
452	452	(insert telephone number)
453	453	(insert e-mail address)
454	454	(insert Internet website address, if applicable)
455	455	"You are urged to attend and express your views at the following
456	456	public hearings on the proposed tax rate:
457	457	First Hearing: (insert date and time) at (insert location of
458	458	meeting).
459	459	Second Hearing: (insert date and time) at (insert location
460	460	of meeting)."
461	461	SECTION 18. Section 1101.254(f), Special District Local
462	462	Laws Code, is amended to read as follows:
463	463	(f) This section does not affect the applicability of [any
464	464	rights district voters may have to petition for an election under]
465	465	Section 26.08 [26.07], Tax Code, to the district's tax rate, except
466	466	that if district voters approve a tax rate increase under this
467	467	section, [the voters may not petition for an election under]
468	468	Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate
469	469	for that year.
470	470	SECTION 19. Sections 1122.2522, 3828.157, and 8876.152,
471	471	Special District Local Laws Code, are amended to read as follows:
472	472	Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE.
473	473	[(a)] If in any year the board adopts a tax rate that exceeds the
474	474	rollback tax rate calculated as provided by Chapter 26, Tax Code,
475	475	[the qualified voters of the district by petition may require that]
476	476	an election under Section 26.08 of that code must be held to
477	477	determine whether or not to approve [reduce] the tax rate adopted by
478	478	the board for that year [to the rollback tax rate].
479	479	[(b) To the extent a conflict exists between this section
480	480	and a provision of the Tax Code, the provision of the Tax Code
481	481	prevails.]
482	482	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
483	483	PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
484	484	not apply to a tax imposed under Section 3828.153 or 3828.156.
485	485	Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS.
486	486	(a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do
487	487	not apply to a tax imposed by the district.
488	488	(b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236],
489	489	Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the
490	490	78th Legislature, Regular Session, 2003, applies] to the district.
491	491	SECTION 20. Section 49.107(g), Water Code, is amended to
492	492	read as follows:
493	493	(g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
494	494	not apply to a tax levied and collected under this section or an ad
495	495	valorem tax levied and collected for the payment of the interest on
496	496	and principal of bonds issued by a district.
497	497	SECTION 21. Section 49.108(f), Water Code, is amended to
498	498	read as follows:
499	499	(f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do
500	500	not apply to a tax levied and collected for payments made under a
501	501	contract approved in accordance with this section.
502	502	SECTION 22. Sections 49.236(a) and (d), Water Code, as
503	503	added by Chapter 335 (S.B. 392), Acts of the 78th Legislature,
504	504	Regular Session, 2003, are amended to read as follows:
505	505	(a) Before the board adopts an ad valorem tax rate for the
506	506	district for debt service, operation and maintenance purposes, or
507	507	contract purposes, the board shall give notice of each meeting of
508	508	the board at which the adoption of a tax rate will be considered.
509	509	The notice must:
510	510	(1) contain a statement in substantially the following
511	511	form:
512	512	"NOTICE OF PUBLIC HEARING ON TAX RATE
513	513	"The (name of the district) will hold a public hearing on a
514	514	proposed tax rate for the tax year (year of tax levy) on (date and
515	515	time) at (meeting place). Your individual taxes may increase or
516	516	decrease, depending on the change in the taxable value of your
517	517	property in relation to the change in taxable value of all other
518	518	property and the tax rate that is adopted.
519	519	"(Names of all board members and, if a vote was taken, an
520	520	indication of how each voted on the proposed tax rate and an
521	521	indication of any absences.)";
522	522	(2) contain the following information:
523	523	(A) the district's total adopted tax rate for the
524	524	preceding year and the proposed tax rate, expressed as an amount per
525	525	$100;
526	526	(B) the difference, expressed as an amount per
527	527	$100 and as a percent increase or decrease, as applicable, in the
528	528	proposed tax rate compared to the adopted tax rate for the preceding
529	529	year;
530	530	(C) the average appraised value of a residence
531	531	homestead in the district in the preceding year and in the current
532	532	year; the district's total homestead exemption, other than an
533	533	exemption available only to disabled persons or persons 65 years of
534	534	age or older, applicable to that appraised value in each of those
535	535	years; and the average taxable value of a residence homestead in the
536	536	district in each of those years, disregarding any homestead
537	537	exemption available only to disabled persons or persons 65 years of
538	538	age or older;
539	539	(D) the amount of tax that would have been
540	540	imposed by the district in the preceding year on a residence
541	541	homestead appraised at the average appraised value of a residence
542	542	homestead in that year, disregarding any homestead exemption
543	543	available only to disabled persons or persons 65 years of age or
544	544	older;
545	545	(E) the amount of tax that would be imposed by the
546	546	district in the current year on a residence homestead appraised at
547	547	the average appraised value of a residence homestead in that year,
548	548	disregarding any homestead exemption available only to disabled
549	549	persons or persons 65 years of age or older, if the proposed tax
550	550	rate is adopted; [and]
551	551	(F) the difference between the amounts of tax
552	552	calculated under Paragraphs (D) and (E), expressed in dollars and
553	553	cents and described as the annual percentage increase or decrease,
554	554	as applicable, in the tax to be imposed by the district on the
555	555	average residence homestead in the district in the current year if
556	556	the proposed tax rate is adopted; and
557	557	(G) if the proposed combined debt service,
558	558	operation and maintenance, and contract tax rate exceeds the
559	559	rollback tax rate, a description of the purpose of the proposed tax
560	560	increase; and
561	561	(3) contain a statement in substantially the following
562	562	form:
563	563	"NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]
564	564	"If operation and maintenance taxes on the average residence
565	565	homestead increase by more than eight percent, [the qualified
566	566	voters of the district by petition may require that] an election
567	567	must be held to determine whether to ratify [reduce] the operation
568	568	and maintenance tax rate [to the rollback tax rate] under Section
569	569	49.236(d), Water Code."
570	570	(d) If the governing body of a district adopts a combined
571	571	debt service, operation and maintenance, and contract tax rate that
572	572	exceeds the rollback tax rate, [would impose more than 1.08 times
573	573	the amount of tax imposed by the district in the preceding year on a
574	574	residence homestead appraised at the average appraised value of a
575	575	residence homestead in the district in that year, disregarding any
576	576	homestead exemption available only to disabled persons or persons
577	577	65 years of age or older, the qualified voters of the district by
578	578	petition may require that] an election must be held to determine
579	579	whether [or not] to ratify [reduce] the tax rate adopted for the
580	580	current year [to the rollback tax rate] in accordance with the
581	581	procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and
582	582	26.081], Tax Code. For purposes of Sections 26.08(b)-(d), Tax
583	583	Code, [26.07(b)-(g)] and this section [subsection], the rollback
584	584	tax rate is the sum of the following tax rates:
585	585	(1) the current year's debt service tax rate;
586	586	(2) the current year's [and] contract tax rate; and
587	587	(3) [rates plus] the operation and maintenance tax
588	588	rate that would impose 1.08 times the amount of the operation and
589	589	maintenance tax imposed by the district in the preceding year on a
590	590	residence homestead appraised at the average appraised value of a
591	591	residence homestead in the district in that year, disregarding any
592	592	homestead exemption available only to disabled persons or persons
593	593	65 years of age or older.
594	594	SECTION 23. Section 6B(f), Chapter 1472, Acts of the 77th
595	595	Legislature, Regular Session, 2001, is amended to read as follows:
596	596	(f) The district may provide that payments required by any
597	597	of the district's contracts, agreements, or leases may be payable
598	598	from the sale of notes, taxes, or bonds, or any combination of
599	599	notes, taxes, or bonds, or may be secured by a lien on or a pledge of
600	600	any available funds, including proceeds of the district's
601	601	maintenance tax, and may be payable subject to annual appropriation
602	602	by the district. The district may pledge to impose and may impose a
603	603	maintenance tax in an amount sufficient to comply with the
604	604	district's obligations under the district's contracts, leases, and
605	605	agreements at a maximum aggregate rate not to exceed 10 cents for
606	606	each $100 valuation of taxable property in the district. Sections
607	607	26.012, 26.04, 26.05, and 26.08 [26.07, and 26.012], Tax Code, do
608	608	not apply to maintenance taxes levied and collected for payments
609	609	under a contract, agreement, lease, time warrant, or maintenance
610	610	note issued or executed under this section.
611	611	SECTION 24. The following provisions are repealed:
612	612	(1) Section 1063.255, Special District Local Laws
613	613	Code;
614	614	(2) Section 22.23(c), Tax Code;
615	615	(3) Section 26.07, Tax Code;
616	616	(4) Section 49.236, Water Code, as added by Chapter
617	617	248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,
618	618	2003; and
619	619	(5) Section 49.2361, Water Code.
620	620	SECTION 25. The change in law made by this Act applies to
621	621	the ad valorem tax rate of a taxing unit beginning with the 2020 tax
622	622	year.
623	623	SECTION 26. Sections 11.4391(a) and 22.23(a) and (b), Tax
624	624	Code, as amended by this Act, apply only to ad valorem taxes imposed
625	625	for a tax year beginning on or after January 1, 2020.
626	626	SECTION 27. Section 33.08(b), Tax Code, as amended by this
627	627	Act, applies only to taxes that become delinquent on or after
628	628	January 1, 2020. Taxes that become delinquent before that date are
629	629	governed by the law as it existed immediately before that date, and
630	630	that law is continued in effect for that purpose.
631	631	SECTION 28. This Act takes effect January 1, 2020.