H.B. No. 2429
AN ACT
relating to the alternate provisions for ad valorem tax rate
notices when the de minimis rate of a taxing unit exceeds the
voter-approval tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.063, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) This subsection applies only to a taxing unit that is
not required to hold an election under Section 26.07 and for which
the qualified voters of the taxing unit may not petition to hold an
election under Section 26.075. In the notice required to be
provided by the taxing unit under Section 26.06(b-1) or (b-3), as
applicable, the taxing unit shall:
(1) add the following to the end of the list of rates
included in the notice:
"DE MINIMIS RATE $_______________ per $100";
(2) substitute the following for the definition of
"voter-approval tax rate": "The voter-approval tax rate is the
highest tax rate that (name of taxing unit) may adopt without
holding an election to seek voter approval of the rate, unless the
de minimis rate for (name of taxing unit) exceeds the
voter-approval tax rate for (name of taxing unit).";
(3) add the following definition of "de minimis rate":
"The de minimis rate is the rate equal to the sum of the
no-new-revenue maintenance and operations rate for (name of taxing
unit), the rate that will raise $500,000, and the current debt rate
for (name of taxing unit)."; and
(4) substitute the following for the provision that
provides notice that an election is required: "The proposed tax
rate is greater than the voter-approval tax rate but not greater
than the de minimis rate and does not exceed the rate that allows
voters to petition for an election under Section 26.075, Tax Code.
If (name of taxing unit) adopts the proposed tax rate, (name of
taxing unit) is not required to hold an election so that the voters
may accept or reject the proposed tax rate and the qualified voters
of the (name of taxing unit) may not petition the (name of taxing
unit) to require an election to be held to determine whether to
reduce the proposed tax rate.".
SECTION 2. The change in law made by this Act applies only
to a tax rate notice that is provided by a taxing unit on or after
the effective date of this Act. A tax rate notice that is provided
by a taxing unit before the effective date of this Act is governed
by the law in effect on the date the notice is provided, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2429 was passed by the House on April
9, 2021, by the following vote: Yeas 145, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2429 was passed by the Senate on April
29, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor