H.B. No. 4456
AN ACT
relating to the calculation of certain ad valorem tax rates of a
school district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.07(f), Tax Code, is amended to read as
follows:
(f) The comptroller shall prescribe tax rate calculation
forms to be used by the designated officer or employee of each[:
[(1)] taxing unit [other than a school district] to
calculate and submit the no-new-revenue tax rate and the
voter-approval tax rate for the taxing unit as required by Chapter
26[; and
[(2) school district to:
[(A) calculate and submit the no-new-revenue tax
rate and the voter-approval tax rate for the district as required by
Chapter 26; and
[(B) submit the rate to maintain the same amount
of state and local revenue per weighted student that the district
received in the school year beginning in the preceding tax year as
required by Chapter 26].
SECTION 2. Section 26.012(18), Tax Code, is amended to read
as follows:
(18) "No-new-revenue maintenance and operations rate"
means a rate expressed in dollars per $100 of taxable value
calculated as follows:
(A) for a taxing unit other than a school
district, the rate [and] calculated according to the following
formula:
NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE = (LAST
YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE
LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; or
(B) for a school district, the rate calculated as
provided by Section 44.004(c)(5)(A)(ii)(a), Education Code.
SECTION 3. Section 26.05(b), Tax Code, is amended to read as
follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. For a taxing unit other than a school district, the vote on
the ordinance, resolution, or order setting a tax rate that exceeds
the no-new-revenue tax rate must be a record vote, and at least 60
percent of the members of the governing body must vote in favor of
the ordinance, resolution, or order. For a school district, the
vote on the ordinance, resolution, or order setting a tax rate that
exceeds the rate calculated as provided by Section
44.004(c)(5)(A)(ii), Education Code, [sum of the no-new-revenue
maintenance and operations tax rate of the district as determined
under Section 26.08(i) and the district's current debt rate] must
be a record vote, and at least 60 percent of the members of the
governing body must vote in favor of the ordinance, resolution, or
order. A motion to adopt an ordinance, resolution, or order setting
a tax rate that exceeds the no-new-revenue tax rate must be made in
the following form: "I move that the property tax rate be increased
by the adoption of a tax rate of (specify tax rate), which is
effectively a (insert percentage by which the proposed tax rate
exceeds the no-new-revenue tax rate) percent increase in the tax
rate." If the ordinance, resolution, or order sets a tax rate that,
if applied to the total taxable value, will impose an amount of
taxes to fund maintenance and operation expenditures of the taxing
unit that exceeds the amount of taxes imposed for that purpose in
the preceding year, the taxing unit must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE."; and
(B) if the tax rate exceeds the no-new-revenue
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of the Internet website of
the taxing unit:
(A) the following statement: "(Insert name of
taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR
MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the no-new-revenue
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."
SECTION 4. Section 26.17(b), Tax Code, is amended to read as
follows:
(b) The database must include, with respect to each property
listed on the appraisal roll for the appraisal district:
(1) the property's identification number;
(2) the property's market value;
(3) the property's taxable value;
(4) the name of each taxing unit in which the property
is located;
(5) for each taxing unit other than a school district
in which the property is located:
(A) the no-new-revenue tax rate; and
(B) the voter-approval tax rate;
(6) for each school district in which the property is
located:
(A) the tax rate that would maintain the same
amount of state and local revenue per [weighted] student that the
district received in the school year beginning in the preceding tax
year; and
(B) the voter-approval tax rate;
(7) the tax rate proposed by the governing body of each
taxing unit in which the property is located;
(8) for each taxing unit other than a school district
in which the property is located, the taxes that would be imposed on
the property if the taxing unit adopted a tax rate equal to:
(A) the no-new-revenue tax rate; and
(B) the proposed tax rate;
(9) for each school district in which the property is
located, the taxes that would be imposed on the property if the
district adopted a tax rate equal to:
(A) the tax rate that would maintain the same
amount of state and local revenue per [weighted] student that the
district received in the school year beginning in the preceding tax
year; and
(B) the proposed tax rate;
(10) for each taxing unit other than a school district
in which the property is located, the difference between the amount
calculated under Subdivision (8)(A) and the amount calculated under
Subdivision (8)(B);
(11) for each school district in which the property is
located, the difference between the amount calculated under
Subdivision (9)(A) and the amount calculated under Subdivision
(9)(B);
(12) the date, time, and location of the public
hearing, if applicable, on the proposed tax rate to be held by the
governing body of each taxing unit in which the property is located;
(13) the date, time, and location of the public
meeting, if applicable, at which the tax rate will be adopted to be
held by the governing body of each taxing unit in which the property
is located; and
(14) for each taxing unit in which the property is
located, an e-mail address at which the taxing unit is capable of
receiving written comments regarding the proposed tax rate of the
taxing unit.
SECTION 5. The change in law made by this Act applies to an
ad valorem tax year that begins on or after the effective date of
this Act.
SECTION 6. This Act takes effect January 1, 2024.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4456 was passed by the House on May 9,
2023, by the following vote: Yeas 116, Nays 26, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4456 was passed by the Senate on May
24, 2023, by the following vote: Yeas 29, Nays 2.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor