By: Hancock S.R. No. 841
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 86th
Legislature, Regular Session, 2019, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
Senate Bill 2 (ad valorem taxation; authorizing fees) to consider
and take action on the following matters:
(1) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new SECTION
to the bill:
SECTION 2. Chapter 1, Tax Code, is amended by adding
Section 1.045 to read as follows:
Sec. 1.045. REFERENCE TO CERTAIN TERMS IN LAW. Unless
the context indicates otherwise:
(1) a reference in law to a taxing unit's effective
maintenance and operations rate is a reference to the taxing
unit's no-new-revenue maintenance and operations rate, as
defined by Chapter 26;
(2) a reference in law to a taxing unit's effective
tax rate is a reference to the taxing unit's no-new-revenue tax
rate, as defined by Chapter 26; and
(3) a reference in law to a taxing unit's rollback
tax rate is a reference to the taxing unit's voter-approval tax
rate, as defined by Chapter 26.
Explanation: The addition is necessary to ensure that
references in other law to terms in Title 1 of the Tax Code that
are changed in the bill are construed in accordance with the way
those terms are used in the bill.
(2) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
36 of the bill, in added Section 26.04(c-1)(2), Tax Code, to read
as follows:
(2) the third tax year after the tax year in which
the disaster occurred.
Explanation: The change is necessary to limit the period
of time during which certain taxing units may calculate the
voter-approval tax rate of the taxing unit at a higher rate
following certain disasters.
(3) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
36 of the bill, in amended Section 26.04(e), Tax Code, to read as
follows:
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee [He] shall
post prominently on the home page of the taxing unit's Internet
website [deliver by mail to each property owner in the unit or
publish in a newspaper] in the form prescribed by the
comptroller:
(1) the no-new-revenue [effective] tax rate, the
voter-approval [rollback] tax rate, and an explanation of how
they were calculated;
(2) the estimated amount of interest and sinking
fund balances and the estimated amount of maintenance and
operation or general fund balances remaining at the end of the
current fiscal year that are not encumbered with or by
corresponding existing debt obligation; and
(3) a schedule of the taxing unit's debt obligations
showing:
(A) the amount of principal and interest that
will be paid to service the taxing unit's debts in the next year
from property tax revenue, including payments of lawfully
incurred contractual obligations providing security for the
payment of the principal of and interest on bonds and other
evidences of indebtedness issued on behalf of the taxing unit by
another political subdivision and, if the taxing unit is created
under Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, payments on debts that the taxing unit anticipates
to incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the taxing unit's anticipated
collection rate; and
(C) the total of the amounts listed in
Paragraphs (A)-(B), less any amount collected in excess of the
previous year's anticipated collections certified as provided in
Subsection (b)[;
[(4) the amount of additional sales and use tax
revenue anticipated in calculations under Section 26.041;
[(5) a statement that the adoption of a tax rate
equal to the effective tax rate would result in an increase or
decrease, as applicable, in the amount of taxes imposed by the
unit as compared to last year's levy, and the amount of the
increase or decrease;
[(6) in the year that a taxing unit calculates an
adjustment under Subsection (i) or (j), a schedule that includes
the following elements:
[(A) the name of the unit discontinuing the
department, function, or activity;
[(B) the amount of property tax revenue spent
by the unit listed under Paragraph (A) to operate the
discontinued department, function, or activity in the 12 months
preceding the month in which the calculations required by this
chapter are made; and
[(C) the name of the unit that operates a
distinct department, function, or activity in all or a majority
of the territory of a taxing unit that has discontinued operating
the distinct department, function, or activity; and
[(7) in the year following the year in which a
taxing unit raised its rollback rate as required by Subsection
(j), a schedule that includes the following elements:
[(A) the amount of property tax revenue spent
by the unit to operate the department, function, or activity for
which the taxing unit raised the rollback rate as required by
Subsection (j) for the 12 months preceding the month in which the
calculations required by this chapter are made; and
[(B) the amount published by the unit in the
preceding tax year under Subdivision (6)(B)].
Explanation: The change is necessary to remove the
requirement that the designated officer or employee of a taxing
unit publish certain tax information in a newspaper.
(4) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
37 of the bill, in added Section 26.041(c-1)(2), Tax Code, to
read as follows:
(2) the third tax year after the tax year in which
the disaster occurred.
Explanation: The change is necessary to limit the period
of time during which certain taxing units may calculate the
voter-approval tax rate of the taxing unit at a higher rate
following certain disasters.
(5) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill in proposed SECTION 43 of the bill
by adding the following new Section 26.0443, Tax Code, to the
bill:
Sec. 26.0443. TAX RATE ADJUSTMENT FOR ELIGIBLE COUNTY
HOSPITAL EXPENDITURES. (a) In this section:
(1) "Eligible county hospital" means a hospital
that:
(A) is:
(i) owned or leased by a county and
operated in accordance with Chapter 263, Health and Safety Code;
or
(ii) owned or leased jointly by a
municipality and a county and operated in accordance with Chapter
265, Health and Safety Code; and
(B) is located in an area not served by a
hospital district created under Sections 4 through 11, Article
IX, Texas Constitution.
(2) "Eligible county hospital expenditures" for a
tax year means the amount paid by a county or municipality in the
period beginning on July 1 of the tax year preceding the tax year
for which the tax is adopted and ending on June 30 of the tax year
for which the tax is adopted to maintain and operate an eligible
county hospital.
(b) If a county's or municipality's eligible county
hospital expenditures exceed the amount of those expenditures
for the preceding tax year, the no-new-revenue maintenance and
operations rate for the county or municipality, as applicable, is
increased by the lesser of the rates computed according to the
following formulas:
(Current Tax Year's Eligible County Hospital
Expenditures - Preceding Tax Year's Eligible County
Hospital Expenditures) / (Current Total Value - New
Property Value)
or
(Preceding Tax Year's Eligible County Hospital
Expenditures x 0.08) / (Current Total Value - New
Property Value)
(c) The county or municipality shall include a notice of
the increase in the no-new-revenue maintenance and operations
rate provided by this section, including a description and amount
of eligible county hospital expenditures, in the information
published under Section 26.04(e) and, as applicable, in the
notice prescribed by Section 26.06 or 26.061.
Explanation: The addition is necessary to add a provision
to Title 1 of the Tax Code to provide for a tax rate adjustment
for eligible county hospital expenditures.
(6) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
48 of the bill, in amended Section 26.06(a), Tax Code, to read as
follows:
(a) A public hearing required by Section 26.05 may not be
held before the fifth [seventh] day after the date the notice of
the public hearing is given. The [second hearing may not be held
earlier than the third day after the date of the first hearing.
Each] hearing must be on a weekday that is not a public holiday.
The [Each] hearing must be held inside the boundaries of the unit
in a publicly owned building or, if a suitable publicly owned
building is not available, in a suitable building to which the
public normally has access. At the hearing [hearings], the
governing body must afford adequate opportunity for proponents
and opponents of the tax increase to present their views.
Explanation: The change is necessary to prohibit holding a
public hearing on certain proposed tax rates before the fifth day
after the date the notice of hearing is given.
(7) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
48 of the bill, in added Sections 26.06(b-1) and (b-3), Tax Code,
in the language of the statement prescribed by those subsections
that describes the effect of the rejection by the voters of the
proposed tax rate, to read as follows:
If a majority of the voters reject the proposed tax rate, the tax
rate of the (name of taxing unit) will be the voter-approval tax
rate.
Explanation: The change is necessary to provide notice of
what tax rate applies to a taxing unit in a tax year if the voters
reject a proposed tax rate that exceeds the voter-approval tax
rate.
(8) Senate Rule 12.03(3) is suspended to permit the
committee to add text on a matter not in disagreement in SECTION
48 of the bill, in added Sections 26.06(b-1), (b-2), and (b-3),
Tax Code, to read as follows:
"The 86th Texas Legislature modified the manner in which
the voter-approval tax rate is calculated to limit the rate of
growth of property taxes in the state."
Explanation: The addition is necessary to require that the
notice of a public hearing on certain proposed tax rates include
a statement that the 86th Texas Legislature modified the manner
in which the voter-approval tax rate is calculated.
(9) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
48 of the bill, in amended Sections 26.06(d) and (e), Tax Code, to
read as follows:
(d) The governing body may vote on the proposed tax rate
at the public hearing. If the governing body does not vote on the
proposed tax rate at the public hearing, [At the public hearings]
the governing body shall announce at the public hearing the date,
time, and place of the meeting at which it will vote on the
proposed tax rate. [After each hearing the governing body shall
give notice of the meeting at which it will vote on the proposed
tax rate and the notice shall be in the same form as prescribed by
Subsections (b) and (c), except that it must state the following:
["NOTICE OF TAX REVENUE INCREASE
["The (name of the taxing unit) conducted public hearings
on (date of first hearing) and (date of second hearing) on a
proposal to increase the total tax revenues of the (name of the
taxing unit) from properties on the tax roll in the preceding
year by (percentage by which proposed tax rate exceeds lower of
rollback tax rate or effective tax rate calculated under this
chapter) percent.
["The total tax revenue proposed to be raised last year at
last year's tax rate of (insert tax rate for the preceding year)
for each $100 of taxable value was (insert total amount of taxes
imposed in the preceding year).
["The total tax revenue proposed to be raised this year at
the proposed tax rate of (insert proposed tax rate) for each $100
of taxable value, excluding tax revenue to be raised from new
property added to the tax roll this year, is (insert amount
computed by multiplying proposed tax rate by the difference
between current total value and new property value).
["The total tax revenue proposed to be raised this year at
the proposed tax rate of (insert proposed tax rate) for each $100
of taxable value, including tax revenue to be raised from new
property added to the tax roll this year, is (insert amount
computed by multiplying proposed tax rate by current total
value).
["The (governing body of the taxing unit) is scheduled to
vote on the tax rate that will result in that tax increase at a
public meeting to be held on (date of meeting) at (location of
meeting, including mailing address) at (time of meeting).
["The (governing body of the taxing unit) proposes to use
the increase in total tax revenue for the purpose of (description
of purpose of increase)."]
(e) A [The] meeting to vote on the tax increase may not be
held [earlier than the third day or] later than the seventh
[14th] day after the date of the [second] public hearing. The
meeting must be held inside the boundaries of the taxing unit in a
publicly owned building or, if a suitable publicly owned building
is not available, in a suitable building to which the public
normally has access. [If the governing body does not adopt a tax
rate that exceeds the lower of the rollback tax rate or the
effective tax rate by the 14th day, it must give a new notice
under Subsection (d) before it may adopt a rate that exceeds the
lower of the rollback tax rate or the effective tax rate.]
Explanation: The changes are necessary to provide the
manner in which the governing body of a taxing unit must in
certain circumstances provide notice of the meeting at which the
governing body will adopt the taxing unit's proposed tax rate.
(10) Senate Rule 12.03(3) is suspended to permit the
committee to add text on a matter not in disagreement in SECTION
49 of the bill, in added Section 26.061(b), Tax Code, to read as
follows:
"The 86th Texas Legislature modified the manner in which
the voter-approval tax rate is calculated to limit the rate of
growth of property taxes in the state."
Explanation: The addition is necessary to require that the
notice of a meeting on certain proposed tax rates include a
statement that the 86th Texas Legislature modified the manner in
which the voter-approval tax rate is calculated.
(11) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
57 of the bill, in added Section 26.16(d-2), Tax Code, to read as
follows:
(d-2) Not later than August 7, the county
assessor-collector shall post on the website the tax rate
calculation forms described by Subsection (d-1)(1) for the
current tax year.
Explanation: The change is necessary to give the county
assessor-collector of a county more time to post certain tax rate
calculation forms on the Internet.
(12) Senate Rule 12.03(3) is suspended to permit the
committee to add text on a matter not in disagreement in SECTION
57 of the bill, in added Section 26.17(a), Tax Code, to read as
follows:
(6) includes the following statement: "The 86th
Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth
of property taxes in the state.".
Explanation: The addition is necessary to require the
chief appraiser of an appraisal district to include in a property
tax database a statement that the 86th Texas Legislature modified
the manner in which the voter-approval tax rate is calculated.
(13) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
58 of the bill, in amended Section 31.12(b)(2), Tax Code, to read
as follows:
(2) if the refund is required by Section 26.07(g) or
26.075(k), on the date the results of the election to approve or
reduce the tax rate, as applicable, are certified;
Explanation: The change is necessary to change the date on
which liability for certain tax refunds arises.
(14) Senate Rule 12.03(3) is suspended to permit the
committee to add text on a matter not in disagreement in SECTION
66 of the bill, in amended Section 41.66, Tax Code, to read as
follows:
(j-2) An appraisal review board must schedule a hearing
on a protest filed by a property owner who is 65 years of age or
older, disabled, a military service member, a military veteran,
or the spouse of a military service member or military veteran
before scheduling a hearing on a protest filed by a designated
agent of a property owner.
Explanation: The addition is necessary to require an
appraisal review board to schedule a hearing on a protest filed
by certain persons before those of other persons.
(15) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement by omitting SECTION 68
of the senate engrossment of Senate Bill 2 and the corresponding
section of the bill as the bill was amended by the house, which
reads as follows:
SECTION 68. Section 45.105(e), Education Code, is
amended to read as follows:
(e) The governing body of an independent school district
that governs a junior college district under Subchapter B,
Chapter 130, in a county with a population of more than two
million may dedicate a specific percentage of the local tax levy
to the use of the junior college district for facilities and
equipment or for the maintenance and operating expenses of the
junior college district. To be effective, the dedication must be
made by the governing body on or before the date on which the
governing body adopts its tax rate for a year. The amount of
local tax funds derived from the percentage of the local tax levy
dedicated to a junior college district from a tax levy may not
exceed the amount that would be levied by five percent of the
no-new-revenue [effective] tax rate for the tax year calculated
as provided by Section 26.04, Tax Code, on all property taxable
by the school district. All real property purchased with these
funds is the property of the school district, but is subject to
the exclusive control of the governing body of the junior college
district for as long as the junior college district uses the
property for educational purposes.
Explanation: The omission is necessary to ensure
consistency of terminology used in the Education Code to describe
certain tax rates.
(16) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new
SECTIONS to the bill:
SECTION 76. Section 281.107(j), Health and Safety Code,
is amended to read as follows:
(j) The portion of the rate of ad valorem tax that is to
be levied and assessed each year by or for the district that is
allocated by the district to the payment of the principal of and
the interest on bonds and other obligations or the maintenance of
reserves therefor in accordance with this section shall be
applied as a payment on current debt in calculating the current
debt rate under the applicable voter-approval tax rate
[rollback] provisions of Chapter 26, Tax Code.
SECTION 77. The heading to Section 281.124, Health and
Safety Code, is amended to read as follows:
Sec. 281.124. ELECTION TO APPROVE TAX RATE IN EXCESS OF
VOTER-APPROVAL [ROLLBACK] TAX RATE.
Explanation: The addition is necessary to ensure
consistency of terminology used in the Health and Safety Code and
Title 1 of the Tax Code to describe certain tax rates.
(17) Senate Rule 12.03(3) is suspended to permit the
committee to add text on a matter not in disagreement in SECTION
78 of the bill, in amended Section 281.124, Health and Safety
Code, to read as follows:
(b) The board may hold an election at which the
registered voters of the district may approve a tax rate for the
current tax year that exceeds the district's voter-approval
[rollback] tax rate for the year computed under Chapter 26, Tax
Code, by a specific rate stated in dollars and cents per $100 of
taxable value.
(c) An election under this section must be held at least
180 days before the date on which the district's tax rate is
adopted by the board. At the election, the ballot shall be
prepared to permit voting for or against the
proposition: "Approving the ad valorem tax rate of $ (insert
total proposed tax rate) per $100 valuation in (insert district
name) for the (insert current tax year) tax year, a rate that
exceeds the district's voter-approval [rollback] tax rate. The
proposed ad valorem tax rate exceeds the ad valorem tax rate most
recently adopted by the district by $ (insert difference between
proposed and preceding year's tax rates) per $100 valuation."
Explanation: The addition is necessary to ensure
consistency of terminology used in the Health and Safety Code and
Title 1 of the Tax Code to describe certain tax rates.
(18) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new SECTION
to the bill:
SECTION 85. Section 49.057, Water Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) The board shall adopt an annual budget. The board of
a developed district, as defined by Section 49.23602, shall
include as an appendix to the budget the district's:
(1) audited financial statements;
(2) bond transcripts; and
(3) engineer's reports required by Section 49.106.
(b-1) All district employees are employed at the will of
the district unless the district and employee execute a written
employment contract.
Explanation: The addition is necessary to ensure that the
board of certain special districts includes an appendix in the
district's budget that includes certain information.
(19) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
105 of the bill, in the transition language, to read as follows:
SECTION 105. (a) An appraisal district established in a
county with a population of 200,000 or more and each taxing unit
located wholly or primarily in such an appraisal district shall
comply with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17,
and 26.18, Tax Code, as added by this Act, beginning with the 2020
tax year.
(b) An appraisal district established in a county with a
population of less than 200,000 and each taxing unit located
wholly or primarily in such an appraisal district shall comply
with Sections 26.04(e-2), 26.05(d-1) and (d-2), 26.17, and
26.18, Tax Code, as added by this Act, beginning with the 2021 tax
year.
Explanation: The change is necessary to provide for the
applicability and implementation of certain provisions of the
Tax Code added by the bill.
(20) Senate Rule 12.03(1) is suspended to permit the
committee to amend text not in disagreement in proposed SECTION
111 of the bill, in the transition language, to read as follows:
SECTION 111. Sections 41.46, 41.461, 41.47, 41.66(h),
(i), and (j), and 41.67, Tax Code, as amended by this Act, and
Sections 41.66(j-1), (j-2), and (p), Tax Code, as added by this
Act, apply only to a protest for which the notice of protest was
filed by a property owner or the designated agent of the owner
with the appraisal review board established for an appraisal
district on or after January 1, 2020.
Explanation: The change is necessary to provide for the
implementation of certain provisions of the Tax Code added by the
bill.
(21) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following new
SECTIONS to the bill:
SECTION 115. Section 42.081, Tax Code, as added by this
Act, applies only to an appeal under Chapter 42, Tax Code, that is
filed on or after January 1, 2020.
SECTION 117. Section 49.057, Water Code, as amended by
this Act, applies only to a budget adopted on or after January 1,
2020.
Explanation: The changes are necessary to provide for the
implementation of certain provisions of the Tax Code and Water
Code added by the bill.
(22) Senate Rule 12.03(2) is suspended to permit the
committee to omit text not in disagreement in SECTION 110 of the
senate engrossment of Senate Bill 2 and the corresponding section
of the bill as the bill was amended by the house by striking
references to Sections 26.04(e-2), (e-3), and (e-4) and Sections
26.05(d-1) and (d-2), Tax Code.
Explanation: The omission is necessary to implement the
changes made in SECTION 105 by the bill.