| 1 | 1 | | 87R3144 CJC-F |
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| 2 | 2 | | By: Bettencourt S.B. No. 1429 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the alternate provisions for ad valorem tax rate |
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| 8 | 8 | | notices when the de minimis rate of a taxing unit exceeds the |
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| 9 | 9 | | voter-approval tax rate. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 26.063, Tax Code, is amended by adding |
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| 12 | 12 | | Subsection (d) to read as follows: |
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| 13 | 13 | | (d) This subsection applies only to a taxing unit that is |
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| 14 | 14 | | not required to hold an election under Section 26.07 and for which |
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| 15 | 15 | | the qualified voters of the taxing unit may not petition to hold an |
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| 16 | 16 | | election under Section 26.075. In the notice required to be |
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| 17 | 17 | | provided by the taxing unit under Section 26.06(b-1) or (b-3), as |
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| 18 | 18 | | applicable, the taxing unit shall: |
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| 19 | 19 | | (1) add the following to the end of the list of rates |
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| 20 | 20 | | included in the notice: |
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| 21 | 21 | | "DE MINIMIS RATE $_______________ per $100"; |
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| 22 | 22 | | (2) substitute the following for the definition of |
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| 23 | 23 | | "voter-approval tax rate": "The voter-approval tax rate is the |
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| 24 | 24 | | highest tax rate that (name of taxing unit) may adopt without |
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| 25 | 25 | | holding an election to seek voter approval of the rate, unless the |
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| 26 | 26 | | de minimis rate for (name of taxing unit) exceeds the |
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| 27 | 27 | | voter-approval tax rate for (name of taxing unit)."; |
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| 28 | 28 | | (3) add the following definition of "de minimis rate": |
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| 29 | 29 | | "The de minimis rate is the rate equal to the sum of the |
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| 30 | 30 | | no-new-revenue maintenance and operations rate for (name of taxing |
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| 31 | 31 | | unit), the rate that will raise $500,000, and the current debt rate |
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| 32 | 32 | | for (name of taxing unit)."; and |
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| 33 | 33 | | (4) substitute the following for the provision that |
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| 34 | 34 | | provides notice that an election is required: "The proposed tax |
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| 35 | 35 | | rate is greater than the voter-approval tax rate but not greater |
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| 36 | 36 | | than the de minimis rate and does not exceed the rate that allows |
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| 37 | 37 | | voters to petition for an election under Section 26.075, Tax Code. |
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| 38 | 38 | | If (name of taxing unit) adopts the proposed tax rate, (name of |
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| 39 | 39 | | taxing unit) is not required to hold an election so that the voters |
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| 40 | 40 | | may accept or reject the proposed tax rate and the qualified voters |
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| 41 | 41 | | of the (name of taxing unit) may not petition the (name of taxing |
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| 42 | 42 | | unit) to require an election to be held to determine whether to |
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| 43 | 43 | | reduce the proposed tax rate.". |
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| 44 | 44 | | SECTION 2. The change in law made by this Act applies only |
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| 45 | 45 | | to a tax rate notice that is provided by a taxing unit on or after |
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| 46 | 46 | | the effective date of this Act. A tax rate notice that is provided |
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| 47 | 47 | | by a taxing unit before the effective date of this Act is governed |
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| 48 | 48 | | by the law in effect on the date the notice is provided, and the |
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| 49 | 49 | | former law is continued in effect for that purpose. |
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| 50 | 50 | | SECTION 3. This Act takes effect immediately if it receives |
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| 51 | 51 | | a vote of two-thirds of all the members elected to each house, as |
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| 52 | 52 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 53 | 53 | | Act does not receive the vote necessary for immediate effect, this |
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| 54 | 54 | | Act takes effect September 1, 2021. |
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