Texas 2021 - 87th Regular

Texas House Bill HB2723 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2723
	1	+	By: Meyer, Shine, Button H.B. No. 2723
	2	+	(Senate Sponsor - Bettencourt)
	3	+	(In the Senate - Received from the House April 19, 2021;
	4	+	April 19, 2021, read first time and referred to Committee on Local
	5	+	Government; May 5, 2021, reported adversely, with favorable
	6	+	Committee Substitute by the following vote: Yeas 8, Nays 0;
	7	+	May 5, 2021, sent to printer.)
	8	+	Click here to see the committee vote
	9	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2723 By: Bettencourt
2	10
3	11
	12	+	A BILL TO BE ENTITLED
4	13		AN ACT
5	14		relating to public notice of the availability on the Internet of
6	15		property-tax-related information.
7	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	17		SECTION 1. Section 44.004(c), Education Code, is amended to
9	18		read as follows:
10	19		(c) The notice of public meeting to discuss and adopt the
11	20		budget and the proposed tax rate may not be smaller than one-quarter
12	21		page of a standard-size or a tabloid-size newspaper, and the
13	22		headline on the notice must be in 18-point or larger type. Subject
14	23		to Subsection (d), the notice must:
15	24		(1) contain a statement in the following form:
16	25		"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
17	26		"The (name of school district) will hold a public meeting at
18	27		(time, date, year) in (name of room, building, physical location,
19	28		city, state). The purpose of this meeting is to discuss the school
20	29		district's budget that will determine the tax rate that will be
21	30		adopted. Public participation in the discussion is invited." The
22	31		statement of the purpose of the meeting must be in bold type. In
23	32		reduced type, the notice must state: "The tax rate that is
24	33		ultimately adopted at this meeting or at a separate meeting at a
25	34		later date may not exceed the proposed rate shown below unless the
26	35		district publishes a revised notice containing the same information
27	36		and comparisons set out below and holds another public meeting to
28	37		discuss the revised notice." In addition, in reduced type, the
29	38		notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
30	39		your local property tax database on which you can easily access
31	40		information regarding your property taxes, including information
32	41		about proposed tax rates and scheduled public hearings of each
33	42		entity that taxes your property.";
34	43		(2) contain a section entitled "Comparison of Proposed
35	44		Budget with Last Year's Budget," which must show the difference,
36	45		expressed as a percent increase or decrease, as applicable, in the
37	46		amounts budgeted for the preceding fiscal year and the amount
38	47		budgeted for the fiscal year that begins in the current tax year for
39	48		each of the following:
40	49		(A) maintenance and operations;
41	50		(B) debt service; and
42	51		(C) total expenditures;
43	52		(3) contain a section entitled "Total Appraised Value
44	53		and Total Taxable Value," which must show the total appraised value
45	54		and the total taxable value of all property and the total appraised
46	55		value and the total taxable value of new property taxable by the
47	56		district in the preceding tax year and the current tax year as
48	57		calculated under Section 26.04, Tax Code;
49	58		(4) contain a statement of the total amount of the
50	59		outstanding and unpaid bonded indebtedness of the school district;
51	60		(5) contain a section entitled "Comparison of Proposed
52	61		Rates with Last Year's Rates," which must:
53	62		(A) show in rows the tax rates described by
54	63		Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
55	64		property, for columns entitled "Maintenance & Operations,"
56	65		"Interest & Sinking Fund," and "Total," which is the sum of
57	66		"Maintenance & Operations" and "Interest & Sinking Fund":
58	67		(i) the school district's "Last Year's
59	68		Rate";
60	69		(ii) the "Rate to Maintain Same Level of
61	70		Maintenance & Operations Revenue & Pay Debt Service," which:
62	71		(a) in the case of "Maintenance &
63	72		Operations," is the tax rate that, when applied to the current
64	73		taxable value for the district, as certified by the chief appraiser
65	74		under Section 26.01, Tax Code, and as adjusted to reflect changes
66	75		made by the chief appraiser as of the time the notice is prepared,
67	76		would impose taxes in an amount that, when added to state funds to
68	77		be distributed to the district under Chapter 48, would provide the
69	78		same amount of maintenance and operations taxes and state funds
70	79		distributed under Chapter 48 per student in average daily
71	80		attendance for the applicable school year that was available to the
72	81		district in the preceding school year; and
73	82		(b) in the case of "Interest & Sinking
74	83		Fund," is the tax rate that, when applied to the current taxable
75	84		value for the district, as certified by the chief appraiser under
76	85		Section 26.01, Tax Code, and as adjusted to reflect changes made by
77	86		the chief appraiser as of the time the notice is prepared, and when
78	87		multiplied by the district's anticipated collection rate, would
79	88		impose taxes in an amount that, when added to state funds to be
80	89		distributed to the district under Chapter 46 and any excess taxes
81	90		collected to service the district's debt during the preceding tax
82	91		year but not used for that purpose during that year, would provide
83	92		the amount required to service the district's debt; and
84	93		(iii) the "Proposed Rate";
85	94		(B) contain fourth and fifth columns aligned with
86	95		the columns required by Paragraph (A) that show, for each row
87	96		required by Paragraph (A):
88	97		(i) the "Local Revenue per Student," which
89	98		is computed by multiplying the district's total taxable value of
90	99		property, as certified by the chief appraiser for the applicable
91	100		school year under Section 26.01, Tax Code, and as adjusted to
92	101		reflect changes made by the chief appraiser as of the time the
93	102		notice is prepared, by the total tax rate, and dividing the product
94	103		by the number of students in average daily attendance in the
95	104		district for the applicable school year; and
96	105		(ii) the "State Revenue per Student," which
97	106		is computed by determining the amount of state aid received or to be
98	107		received by the district under Chapters 43, 46, and 48 and dividing
99	108		that amount by the number of students in average daily attendance in
100	109		the district for the applicable school year; and
101	110		(C) contain an asterisk after each calculation
102	111		for "Interest & Sinking Fund" and a footnote to the section that, in
103	112		reduced type, states "The Interest & Sinking Fund tax revenue is
104	113		used to pay for bonded indebtedness on construction, equipment, or
105	114		both. The bonds, and the tax rate necessary to pay those bonds, were
106	115		approved by the voters of this district.";
107	116		(6) contain a section entitled "Comparison of Proposed
108	117		Levy with Last Year's Levy on Average Residence," which must:
109	118		(A) show in rows the information described by
110	119		Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
111	120		entitled "Last Year" and "This Year":
112	121		(i) "Average Market Value of Residences,"
113	122		determined using the same group of residences for each year;
114	123		(ii) "Average Taxable Value of Residences,"
115	124		determined after taking into account the limitation on the
116	125		appraised value of residences under Section 23.23, Tax Code, and
117	126		after subtracting all homestead exemptions applicable in each year,
118	127		other than exemptions available only to disabled persons or persons
119	128		65 years of age or older or their surviving spouses, and using the
120	129		same group of residences for each year;
121	130		(iii) "Last Year's Rate Versus Proposed
122	131		Rate per $100 Value"; and
123	132		(iv) "Taxes Due on Average Residence,"
124	133		determined using the same group of residences for each year; and
125	134		(B) contain the following information: "Increase
126	135		(Decrease) in Taxes" expressed in dollars and cents, which is
127	136		computed by subtracting the "Taxes Due on Average Residence" for
128	137		the preceding tax year from the "Taxes Due on Average Residence" for
129	138		the current tax year;
130	139		(7) contain the following statement in bold print:
131	140		"Under state law, the dollar amount of school taxes imposed on the
132	141		residence of a person 65 years of age or older or of the surviving
133	142		spouse of such a person, if the surviving spouse was 55 years of age
134	143		or older when the person died, may not be increased above the amount
135	144		paid in the first year after the person turned 65, regardless of
136	145		changes in tax rate or property value.";
137	146		(8) contain the following statement in bold print:
138	147		"Notice of Voter-Approval Rate: The highest tax rate the district
139	148		can adopt before requiring voter approval at an election is (the
140	149		school district voter-approval rate determined under Section
141	150		26.08, Tax Code). This election will be automatically held if the
142	151		district adopts a rate in excess of the voter-approval rate of (the
143	152		school district voter-approval rate)."; and
144	153		(9) contain a section entitled "Fund Balances," which
145	154		must include the estimated amount of interest and sinking fund
146	155		balances and the estimated amount of maintenance and operation or
147	156		general fund balances remaining at the end of the current fiscal
148	157		year that are not encumbered with or by corresponding debt
149	158		obligation, less estimated funds necessary for the operation of the
150	159		district before the receipt of the first payment under Chapter 48 in
151	160		the succeeding school year.
152	161		SECTION 2. Section 25.19, Tax Code, is amended by adding
153	162		Subsection (m) to read as follows:
154	163		(m) A notice required by Subsection (a) or (g) must include
155	164		the following statement: "Beginning August 7th, visit
156	165		Texas.gov/PropertyTaxes to find a link to your local property tax
157	166		database on which you can easily access information regarding your
158	167		property taxes, including information regarding the amount of taxes
159	168		that each entity that taxes your property will impose if the entity
160	169		adopts its proposed tax rate. Your local property tax database will
161	170		be updated regularly during August and September as local elected
162	171		officials propose and adopt the property tax rates that will
163	172		determine how much you pay in property taxes."
164	173		SECTION 3. Section 26.04(e-2), Tax Code, is amended to read
165	174		as follows:
166	175		(e-2) By August 7 or as soon thereafter as practicable, the
167	176		chief appraiser of each appraisal district shall deliver by regular
168	177		mail or e-mail to each owner of property located in the appraisal
169	178		district a notice that the estimated amount of taxes to be imposed
170	179		on the owner's property by each taxing unit in which the property is
171	180		located may be found in the property tax database maintained by the
172	181		appraisal district under Section 26.17. The notice must include:
173	182		(1) the following [a] statement: "Visit
174	183		Texas.gov/PropertyTaxes to find a link to your local property tax
175	184		database on which you can easily access information regarding your
176	185		property taxes, including information regarding the amount of taxes
177	186		that each entity that taxes your property will impose if the entity
178	187		adopts its proposed tax rate. Your local property tax database will
179	188		be updated regularly during August and September as local elected
180	189		officials propose and adopt the property tax rates that will
181	190		determine how much you pay in property taxes." [directing the
182	191		property owner to an Internet website from which the owner may
183	192		access information related to the actions taken or proposed to be
184	193		taken by each taxing unit in which the property is located that may
185	194		affect the taxes imposed on the owner's property];
186	195		(2) a statement that the property owner may request
187	196		from the county assessor-collector for the county in which the
188	197		property is located or, if the county assessor-collector does not
189	198		assess taxes for the county, the person who assesses taxes for the
190	199		county under Section 6.24(b), contact information for the assessor
191	200		for each taxing unit in which the property is located, who must
192	201		provide the information described by this subsection to the owner
193	202		on request; and
194	203		(3) the name, address, and telephone number of the
195	204		county assessor-collector for the county in which the property is
196	205		located or, if the county assessor-collector does not assess taxes
197	206		for the county, the person who assesses taxes for the county under
198	207		Section 6.24(b).
199	208		SECTION 4. Section 26.052, Tax Code, is amended by adding
200	209		Subsection (e-1) to read as follows:
201	210		(e-1) Public notice provided under Subsection (c) must
202	211		include the following statement: "Visit Texas.gov/PropertyTaxes to
203	212		find a link to your local property tax database on which you can
204	213		easily access information regarding your property taxes, including
205	214		information about proposed tax rates and scheduled public hearings
206	215		of each entity that taxes your property."
207	216		SECTION 5. Sections 26.06(b-1), (b-2), and (b-3), Tax Code,
208	217		are amended to read as follows:
209	218		(b-1) If the proposed tax rate exceeds the no-new-revenue
210	219		tax rate and the voter-approval tax rate of the taxing unit, the
211	220		notice must contain a statement in the following form:
212	221		"NOTICE OF PUBLIC HEARING ON TAX INCREASE
213	222		"PROPOSED TAX RATE $__________ per $100
214	223		"NO-NEW-REVENUE TAX RATE $__________ per $100
215	224		"VOTER-APPROVAL TAX RATE $__________ per $100
216	225		"The no-new-revenue tax rate is the tax rate for the (current
217	226		tax year) tax year that will raise the same amount of property tax
218	227		revenue for (name of taxing unit) from the same properties in both
219	228		the (preceding tax year) tax year and the (current tax year) tax
220	229		year.
221	230		"The voter-approval tax rate is the highest tax rate that
222	231		(name of taxing unit) may adopt without holding an election to seek
223	232		voter approval of the rate.
224	233		"The proposed tax rate is greater than the no-new-revenue tax
225	234		rate. This means that (name of taxing unit) is proposing to
226	235		increase property taxes for the (current tax year) tax year.
227	236		"A public hearing on the proposed tax rate will be held on
228	237		(date and time) at (meeting place).
229	238		"The proposed tax rate is also greater than the
230	239		voter-approval tax rate. If (name of taxing unit) adopts the
231	240		proposed tax rate, (name of taxing unit) is required to hold an
232	241		election so that the voters may accept or reject the proposed tax
233	242		rate. If a majority of the voters reject the proposed tax rate, the
234	243		tax rate of the (name of taxing unit) will be the voter-approval tax
235	244		rate. The election will be held on (date of election). You may
236	245		contact the (name of office responsible for administering the
237	246		election) for information about voting locations. The hours of
238	247		voting on election day are (voting hours).
239	248		"Your taxes owed under any of the tax rates mentioned above
240	249		can be calculated as follows:
241	250		"Property tax amount = tax rate x taxable value of your
242	251		property / 100
243	252		"(Names of all members of the governing body, showing how
244	253		each voted on the proposal to consider the tax increase or, if one
245	254		or more were absent, indicating the absences.)
246	255		"Visit Texas.gov/PropertyTaxes to find a link to your local
247	256		property tax database on which you can easily access information
248	257		regarding your property taxes, including information about
249	258		proposed tax rates and scheduled public hearings of each entity
250	259		that taxes your property.
251	260		"The 86th Texas Legislature modified the manner in which the
252	261		voter-approval tax rate is calculated to limit the rate of growth of
253	262		property taxes in the state."
254	263		(b-2) If the proposed tax rate exceeds the no-new-revenue
255	264		tax rate but does not exceed the voter-approval tax rate of the
256	265		taxing unit, the notice must contain a statement in the following
257	266		form:
258	267		"NOTICE OF PUBLIC HEARING ON TAX INCREASE
259	268		"PROPOSED TAX RATE $__________ per $100
260	269		"NO-NEW-REVENUE TAX RATE $__________ per $100
261	270		"VOTER-APPROVAL TAX RATE $__________ per $100
262	271		"The no-new-revenue tax rate is the tax rate for the (current
263	272		tax year) tax year that will raise the same amount of property tax
264	273		revenue for (name of taxing unit) from the same properties in both
265	274		the (preceding tax year) tax year and the (current tax year) tax
266	275		year.
267	276		"The voter-approval tax rate is the highest tax rate that
268	277		(name of taxing unit) may adopt without holding an election to seek
269	278		voter approval of the rate.
270	279		"The proposed tax rate is greater than the no-new-revenue tax
271	280		rate. This means that (name of taxing unit) is proposing to
272	281		increase property taxes for the (current tax year) tax year.
273	282		"A public hearing on the proposed tax rate will be held on
274	283		(date and time) at (meeting place).
275	284		"The proposed tax rate is not greater than the voter-approval
276	285		tax rate. As a result, (name of taxing unit) is not required to
277	286		hold an election at which voters may accept or reject the proposed
278	287		tax rate. However, you may express your support for or opposition
279	288		to the proposed tax rate by contacting the members of the (name of
280	289		governing body) of (name of taxing unit) at their offices or by
281	290		attending the public hearing mentioned above.
282	291		"Your taxes owed under any of the tax rates mentioned above
283	292		can be calculated as follows:
284	293		"Property tax amount = tax rate x taxable value of your
285	294		property / 100
286	295		"(Names of all members of the governing body, showing how
287	296		each voted on the proposal to consider the tax increase or, if one
288	297		or more were absent, indicating the absences.)
289	298		"Visit Texas.gov/PropertyTaxes to find a link to your local
290	299		property tax database on which you can easily access information
291	300		regarding your property taxes, including information about
292	301		proposed tax rates and scheduled public hearings of each entity
293	302		that taxes your property.
294	303		"The 86th Texas Legislature modified the manner in which the
295	304		voter-approval tax rate is calculated to limit the rate of growth of
296	305		property taxes in the state."
297	306		(b-3) If the proposed tax rate does not exceed the
298	307		no-new-revenue tax rate but exceeds the voter-approval tax rate of
299	308		the taxing unit, the notice must contain a statement in the
300	309		following form:
301	310		"NOTICE OF PUBLIC HEARING ON TAX RATE
302	311		"PROPOSED TAX RATE $__________ per $100
303	312		"NO-NEW-REVENUE TAX RATE $__________ per $100
304	313		"VOTER-APPROVAL TAX RATE $__________ per $100
305	314		"The no-new-revenue tax rate is the tax rate for the (current
306	315		tax year) tax year that will raise the same amount of property tax
307	316		revenue for (name of taxing unit) from the same properties in both
308	317		the (preceding tax year) tax year and the (current tax year) tax
309	318		year.
310	319		"The voter-approval tax rate is the highest tax rate that
311	320		(name of taxing unit) may adopt without holding an election to seek
312	321		voter approval of the rate.
313	322		"The proposed tax rate is not greater than the no-new-revenue
314	323		tax rate. This means that (name of taxing unit) is not proposing to
315	324		increase property taxes for the (current tax year) tax year.
316	325		"A public hearing on the proposed tax rate will be held on
317	326		(date and time) at (meeting place).
318	327		"The proposed tax rate is greater than the voter-approval tax
319	328		rate. If (name of taxing unit) adopts the proposed tax rate, (name
320	329		of taxing unit) is required to hold an election so that the voters
321	330		may accept or reject the proposed tax rate. If a majority of the
322	331		voters reject the proposed tax rate, the tax rate of the (name of
323	332		taxing unit) will be the voter-approval tax rate. The election
324	333		will be held on (date of election). You may contact the (name of
325	334		office responsible for administering the election) for information
326	335		about voting locations. The hours of voting on election day are
327	336		(voting hours).
328	337		"Your taxes owed under any of the tax rates mentioned above
329	338		can be calculated as follows:
330	339		"Property tax amount = tax rate x taxable value of your
331	340		property / 100
332	341		"(Names of all members of the governing body, showing how
333	342		each voted on the proposal to consider the tax rate or, if one or
334	343		more were absent, indicating the absences.)
335	344		"Visit Texas.gov/PropertyTaxes to find a link to your local
336	345		property tax database on which you can easily access information
337	346		regarding your property taxes, including information about
338	347		proposed tax rates and scheduled public hearings of each entity
339	348		that taxes your property.
340	349		"The 86th Texas Legislature modified the manner in which the
341	350		voter-approval tax rate is calculated to limit the rate of growth of
342	351		property taxes in the state."
343	352		SECTION 6. Section 26.061(b), Tax Code, is amended to read
344	353		as follows:
345	354		(b) The notice of the meeting at which the governing body of
346	355		the taxing unit will vote on the proposed tax rate must contain a
347	356		statement in the following form:
348	357		"NOTICE OF MEETING TO VOTE ON TAX RATE
349	358		"PROPOSED TAX RATE $__________ per $100
350	359		"NO-NEW-REVENUE TAX RATE $__________ per $100
351	360		"VOTER-APPROVAL TAX RATE $__________ per $100
352	361		"The no-new-revenue tax rate is the tax rate for the (current
353	362		tax year) tax year that will raise the same amount of property tax
354	363		revenue for (name of taxing unit) from the same properties in both
355	364		the (preceding tax year) tax year and the (current tax year) tax
356	365		year.
357	366		"The voter-approval tax rate is the highest tax rate that
358	367		(name of taxing unit) may adopt without holding an election to seek
359	368		voter approval of the rate.
360	369		"The proposed tax rate is not greater than the no-new-revenue
361	370		tax rate. This means that (name of taxing unit) is not proposing to
362	371		increase property taxes for the (current tax year) tax year.
363	372		"A public meeting to vote on the proposed tax rate will be
364	373		held on (date and time) at (meeting place).
365	374		"The proposed tax rate is also not greater than the
366	375		voter-approval tax rate. As a result, (name of taxing unit) is not
367	376		required to hold an election to seek voter approval of the
368	377		rate. However, you may express your support for or opposition to
369	378		the proposed tax rate by contacting the members of the (name of
370	379		governing body) of (name of taxing unit) at their offices or by
371	380		attending the public meeting mentioned above.
372	381		"Your taxes owed under any of the above rates can be
373	382		calculated as follows:
374	383		"Property tax amount = tax rate x taxable value of your
375	384		property / 100
376	385		"(Names of all members of the governing body, showing how
377	386		each voted on the proposed tax rate or, if one or more were absent,
378	387		indicating the absences.)
379	388		"Visit Texas.gov/PropertyTaxes to find a link to your local
380	389		property tax database on which you can easily access information
381	390		regarding your property taxes, including information about
382	391		proposed tax rates and scheduled public hearings of each entity
383	392		that taxes your property.
384	393		"The 86th Texas Legislature modified the manner in which the
385	394		voter-approval tax rate is calculated to limit the rate of growth of
386	395		property taxes in the state."
387	396		SECTION 7. Chapter 26, Tax Code, is amended by adding
388	397		Section 26.175 to read as follows:
389	398		Sec. 26.175. PROPERTY TAX DATABASE LOCATOR WEBSITE. (a) In
390	399		this section, "property tax database" means a property tax database
391	400		required to be created and maintained by a chief appraiser under
392	401		Section 26.17.
393	402		(b) The Department of Information Resources shall develop
394	403		and maintain an easily accessible Internet website that lists each
395	404		property tax database and includes a method to assist a property
396	405		owner to identify the appropriate property tax database for the
397	406		owner's property.
398	407		(c) The Internet website must provide a separate link to the
399	408		Internet location of each property tax database.
400	409		(d) The address of the Internet website must be
401	410		"Texas.gov/PropertyTaxes."
402	411		SECTION 8. Section 49.236(a), Water Code, is amended to
403	412		read as follows:
404	413		(a) Before the board adopts an ad valorem tax rate for the
405	414		district for debt service, operation and maintenance purposes, or
406	415		contract purposes, the board shall give notice of each meeting of
407	416		the board at which the adoption of a tax rate will be considered.
408	417		The notice must:
409	418		(1) contain a statement in substantially the following
410	419		form:
411	420		"NOTICE OF PUBLIC HEARING ON TAX RATE
412	421		"The (name of the district) will hold a public hearing on a
413	422		proposed tax rate for the tax year (year of tax levy) on (date and
414	423		time) at (meeting place). Your individual taxes may increase at a
415	424		greater or lesser rate, or even decrease, depending on the tax rate
416	425		that is adopted and on the change in the taxable value of your
417	426		property in relation to the change in taxable value of all other
418	427		property. The change in the taxable value of your property in
419	428		relation to the change in the taxable value of all other property
420	429		determines the distribution of the tax burden among all property
421	430		owners.
422	431		"Visit Texas.gov/PropertyTaxes to find a link to your local
423	432		property tax database on which you can easily access information
424	433		regarding your property taxes, including information about
425	434		proposed tax rates and scheduled public hearings of each entity
426	435		that taxes your property.
427	436		"(Names of all board members and, if a vote was taken, an
428	437		indication of how each voted on the proposed tax rate and an
429	438		indication of any absences.)";
430	439		(2) contain the following information:
431	440		(A) the district's total adopted tax rate for the
432	441		preceding year and the proposed tax rate, expressed as an amount per
433	442		$100;
434	443		(B) the difference, expressed as an amount per
435	444		$100 and as a percent increase or decrease, as applicable, in the
436	445		proposed tax rate compared to the adopted tax rate for the preceding
437	446		year;
438	447		(C) the average appraised value of a residence
439	448		homestead in the district in the preceding year and in the current
440	449		year; the district's total homestead exemption, other than an
441	450		exemption available only to disabled persons or persons 65 years of
442	451		age or older, applicable to that appraised value in each of those
443	452		years; and the average taxable value of a residence homestead in the
444	453		district in each of those years, disregarding any homestead
445	454		exemption available only to disabled persons or persons 65 years of
446	455		age or older;
447	456		(D) the amount of tax that would have been
448	457		imposed by the district in the preceding year on a residence
449	458		homestead appraised at the average appraised value of a residence
450	459		homestead in that year, disregarding any homestead exemption
451	460		available only to disabled persons or persons 65 years of age or
452	461		older;
453	462		(E) the amount of tax that would be imposed by the
454	463		district in the current year on a residence homestead appraised at
455	464		the average appraised value of a residence homestead in that year,
456	465		disregarding any homestead exemption available only to disabled
457	466		persons or persons 65 years of age or older, if the proposed tax
458	467		rate is adopted;
459	468		(F) the difference between the amounts of tax
460	469		calculated under Paragraphs (D) and (E), expressed in dollars and
461	470		cents and described as the annual percentage increase or decrease,
462	471		as applicable, in the tax to be imposed by the district on the
463	472		average residence homestead in the district in the current year if
464	473		the proposed tax rate is adopted; and
465	474		(G) if the proposed combined debt service,
466	475		operation and maintenance, and contract tax rate requires or
467	476		authorizes an election to approve or reduce the tax rate, as
468	477		applicable, a description of the purpose of the proposed tax
469	478		increase;
470	479		(3) contain a statement in substantially the following
471	480		form, as applicable:
472	481		(A) if the district is a district described by
473	482		Section 49.23601:
474	483		"NOTICE OF VOTE ON TAX RATE
475	484		"If the district adopts a combined debt service, operation
476	485		and maintenance, and contract tax rate that would result in the
477	486		taxes on the average residence homestead increasing by more than
478	487		eight percent, an election must be held to determine whether to
479	488		approve the operation and maintenance tax rate under Section
480	489		49.23601, Water Code.";
481	490		(B) if the district is a district described by
482	491		Section 49.23602:
483	492		"NOTICE OF VOTE ON TAX RATE
484	493		"If the district adopts a combined debt service, operation
485	494		and maintenance, and contract tax rate that would result in the
486	495		taxes on the average residence homestead increasing by more than
487	496		3.5 percent, an election must be held to determine whether to
488	497		approve the operation and maintenance tax rate under Section
489	498		49.23602, Water Code."; or
490	499		(C) if the district is a district described by
491	500		Section 49.23603:
492	501		"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
493	502		"If the district adopts a combined debt service, operation
494	503		and maintenance, and contract tax rate that would result in the
495	504		taxes on the average residence homestead increasing by more than
496	505		eight percent, the qualified voters of the district by petition may
497	506		require that an election be held to determine whether to reduce the
498	507		operation and maintenance tax rate to the voter-approval tax rate
499	508		under Section 49.23603, Water Code."; and
500	509		(4) include the following statement: "The 86th Texas
501	510		Legislature modified the manner in which the voter-approval tax
502	511		rate is calculated to limit the rate of growth of property taxes in
503	512		the state.".
504	513		SECTION 9. Not later than January 1, 2022, the Department of
505	514		Information Resources shall develop the Internet website required
506	515		by Section 26.175, Tax Code, as added by this Act.
507	516		SECTION 10. The changes in law made by this Act apply only
508	517		to a notice required to be delivered for an ad valorem tax year that
509	518		begins on or after January 1, 2022.
510	519		SECTION 11. This Act takes effect immediately if it
511	520		receives a vote of two-thirds of all the members elected to each
512	521		house, as provided by Section 39, Article III, Texas Constitution.
513	522		If this Act does not receive the vote necessary for immediate
514	523		effect, this Act takes effect September 1, 2021.
515		-	______________________________ ______________________________
516		-	President of the Senate Speaker of the House
517		-	I certify that H.B. No. 2723 was passed by the House on April
518		-	15, 2021, by the following vote: Yeas 144, Nays 0, 1 present, not
519		-	voting; and that the House concurred in Senate amendments to H.B.
520		-	No. 2723 on May 18, 2021, by the following vote: Yeas 144, Nays 0,
521		-	1 present, not voting.
522		-	______________________________
523		-	Chief Clerk of the House
524		-	I certify that H.B. No. 2723 was passed by the Senate, with
525		-	amendments, on May 11, 2021, by the following vote: Yeas 30, Nays
526		-	0.
527		-	______________________________
528		-	Secretary of the Senate
529		-	APPROVED: __________________
530		-	Date
531		-	__________________
532		-	Governor
	524	+	* * * * *