Texas 2023 - 88th Regular

Texas House Bill HB4852 Compare Versions

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Version 2 (New)

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1	1	88R13537 CJC-F
2	2	By: Harrison H.B. No. 4852
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the form of a notice of public hearing on a proposed ad
8	8	valorem tax rate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 26.06(b-1), (b-2), and (b-3), Tax Code,
11	11	are amended to read as follows:
12	12	(b-1) If the proposed tax rate exceeds the no-new-revenue
13	13	tax rate and the voter-approval tax rate of the taxing unit, the
14	14	notice must contain a statement in the following form:
15	15	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
16	16	"LAST YEAR'S TAX RATE $__________ per $100
17	17	"PROPOSED TAX RATE $__________ per $100
18	18	"NO-NEW-REVENUE TAX RATE $__________ per $100
19	19	"VOTER-APPROVAL TAX RATE $__________ per $100
20	20	"The no-new-revenue tax rate is the tax rate for the (current
21	21	tax year) tax year that will raise the same amount of property tax
22	22	revenue for (name of taxing unit) from the same properties in both
23	23	the (preceding tax year) tax year and the (current tax year) tax
24	24	year.
25	25	"The voter-approval tax rate is the highest tax rate that
26	26	(name of taxing unit) may adopt without holding an election to seek
27	27	voter approval of the rate.
28	28	"The proposed tax rate is greater than the no-new-revenue tax
29	29	rate. This means that (name of taxing unit) is proposing to
30	30	increase property taxes for the (current tax year) tax year.
31	31	"A public hearing on the proposed tax rate will be held on
32	32	(date and time) at (meeting place).
33	33	"The proposed tax rate is also greater than the
34	34	voter-approval tax rate. If (name of taxing unit) adopts the
35	35	proposed tax rate, (name of taxing unit) is required to hold an
36	36	election so that the voters may accept or reject the proposed tax
37	37	rate. If a majority of the voters reject the proposed tax rate, the
38	38	tax rate of the (name of taxing unit) will be the voter-approval tax
39	39	rate. The election will be held on (date of election). You may
40	40	contact the (name of office responsible for administering the
41	41	election) for information about voting locations. The hours of
42	42	voting on election day are (voting hours).
43	43	"Your taxes owed under any of the tax rates mentioned above
44	44	can be calculated as follows:
45	45	"Property tax amount = tax rate x taxable value of your
46	46	property / 100
47	47	"(Names of all members of the governing body, showing how
48	48	each voted on the proposal to consider the tax increase or, if one
49	49	or more were absent, indicating the absences.)
50	50	"Visit Texas.gov/PropertyTaxes to find a link to your local
51	51	property tax database on which you can easily access information
52	52	regarding your property taxes, including information about
53	53	proposed tax rates and scheduled public hearings of each entity
54	54	that taxes your property.
55	55	"The 86th Texas Legislature modified the manner in which the
56	56	voter-approval tax rate is calculated to limit the rate of growth of
57	57	property taxes in the state."
58	58	(b-2) If the proposed tax rate exceeds the no-new-revenue
59	59	tax rate but does not exceed the voter-approval tax rate of the
60	60	taxing unit, the notice must contain a statement in the following
61	61	form:
62	62	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
63	63	"LAST YEAR'S TAX RATE $__________ per $100
64	64	"PROPOSED TAX RATE $__________ per $100
65	65	"NO-NEW-REVENUE TAX RATE $__________ per $100
66	66	"VOTER-APPROVAL TAX RATE $__________ per $100
67	67	"The no-new-revenue tax rate is the tax rate for the (current
68	68	tax year) tax year that will raise the same amount of property tax
69	69	revenue for (name of taxing unit) from the same properties in both
70	70	the (preceding tax year) tax year and the (current tax year) tax
71	71	year.
72	72	"The voter-approval tax rate is the highest tax rate that
73	73	(name of taxing unit) may adopt without holding an election to seek
74	74	voter approval of the rate.
75	75	"The proposed tax rate is greater than the no-new-revenue tax
76	76	rate. This means that (name of taxing unit) is proposing to
77	77	increase property taxes for the (current tax year) tax year.
78	78	"A public hearing on the proposed tax rate will be held on
79	79	(date and time) at (meeting place).
80	80	"The proposed tax rate is not greater than the voter-approval
81	81	tax rate. As a result, (name of taxing unit) is not required to
82	82	hold an election at which voters may accept or reject the proposed
83	83	tax rate. However, you may express your support for or opposition
84	84	to the proposed tax rate by contacting the members of the (name of
85	85	governing body) of (name of taxing unit) at their offices or by
86	86	attending the public hearing mentioned above.
87	87	"Your taxes owed under any of the tax rates mentioned above
88	88	can be calculated as follows:
89	89	"Property tax amount = tax rate x taxable value of your
90	90	property / 100
91	91	"(Names of all members of the governing body, showing how
92	92	each voted on the proposal to consider the tax increase or, if one
93	93	or more were absent, indicating the absences.)
94	94	"Visit Texas.gov/PropertyTaxes to find a link to your local
95	95	property tax database on which you can easily access information
96	96	regarding your property taxes, including information about
97	97	proposed tax rates and scheduled public hearings of each entity
98	98	that taxes your property.
99	99	"The 86th Texas Legislature modified the manner in which the
100	100	voter-approval tax rate is calculated to limit the rate of growth of
101	101	property taxes in the state."
102	102	(b-3) If the proposed tax rate does not exceed the
103	103	no-new-revenue tax rate but exceeds the voter-approval tax rate of
104	104	the taxing unit, the notice must contain a statement in the
105	105	following form:
106	106	"NOTICE OF PUBLIC HEARING ON TAX RATE
107	107	"LAST YEAR'S TAX RATE $__________ per $100
108	108	"PROPOSED TAX RATE $__________ per $100
109	109	"NO-NEW-REVENUE TAX RATE $__________ per $100
110	110	"VOTER-APPROVAL TAX RATE $__________ per $100
111	111	"The no-new-revenue tax rate is the tax rate for the (current
112	112	tax year) tax year that will raise the same amount of property tax
113	113	revenue for (name of taxing unit) from the same properties in both
114	114	the (preceding tax year) tax year and the (current tax year) tax
115	115	year.
116	116	"The voter-approval tax rate is the highest tax rate that
117	117	(name of taxing unit) may adopt without holding an election to seek
118	118	voter approval of the rate.
119	119	"The proposed tax rate is not greater than the no-new-revenue
120	120	tax rate. This means that (name of taxing unit) is not proposing to
121	121	increase property taxes for the (current tax year) tax year.
122	122	"A public hearing on the proposed tax rate will be held on
123	123	(date and time) at (meeting place).
124	124	"The proposed tax rate is greater than the voter-approval tax
125	125	rate. If (name of taxing unit) adopts the proposed tax rate, (name
126	126	of taxing unit) is required to hold an election so that the voters
127	127	may accept or reject the proposed tax rate. If a majority of the
128	128	voters reject the proposed tax rate, the tax rate of the (name of
129	129	taxing unit) will be the voter-approval tax rate. The election
130	130	will be held on (date of election). You may contact the (name of
131	131	office responsible for administering the election) for information
132	132	about voting locations. The hours of voting on election day are
133	133	(voting hours).
134	134	"Your taxes owed under any of the tax rates mentioned above
135	135	can be calculated as follows:
136	136	"Property tax amount = tax rate x taxable value of your
137	137	property / 100
138	138	"(Names of all members of the governing body, showing how
139	139	each voted on the proposal to consider the tax rate or, if one or
140	140	more were absent, indicating the absences.)
141	141	"Visit Texas.gov/PropertyTaxes to find a link to your local
142	142	property tax database on which you can easily access information
143	143	regarding your property taxes, including information about
144	144	proposed tax rates and scheduled public hearings of each entity
145	145	that taxes your property.
146	146	"The 86th Texas Legislature modified the manner in which the
147	147	voter-approval tax rate is calculated to limit the rate of growth of
148	148	property taxes in the state."
149	149	SECTION 2. Section 26.061(b), Tax Code, is amended to read
150	150	as follows:
151	151	(b) The notice of the meeting at which the governing body of
152	152	the taxing unit will vote on the proposed tax rate must contain a
153	153	statement in the following form:
154	154	"NOTICE OF MEETING TO VOTE ON TAX RATE
155	155	"LAST YEAR'S TAX RATE $__________ per $100
156	156	"PROPOSED TAX RATE $__________ per $100
157	157	"NO-NEW-REVENUE TAX RATE $__________ per $100
158	158	"VOTER-APPROVAL TAX RATE $__________ per $100
159	159	"The no-new-revenue tax rate is the tax rate for the (current
160	160	tax year) tax year that will raise the same amount of property tax
161	161	revenue for (name of taxing unit) from the same properties in both
162	162	the (preceding tax year) tax year and the (current tax year) tax
163	163	year.
164	164	"The voter-approval tax rate is the highest tax rate that
165	165	(name of taxing unit) may adopt without holding an election to seek
166	166	voter approval of the rate.
167	167	"The proposed tax rate is not greater than the no-new-revenue
168	168	tax rate. This means that (name of taxing unit) is not proposing to
169	169	increase property taxes for the (current tax year) tax year.
170	170	"A public meeting to vote on the proposed tax rate will be
171	171	held on (date and time) at (meeting place).
172	172	"The proposed tax rate is also not greater than the
173	173	voter-approval tax rate. As a result, (name of taxing unit) is not
174	174	required to hold an election to seek voter approval of the
175	175	rate. However, you may express your support for or opposition to
176	176	the proposed tax rate by contacting the members of the (name of
177	177	governing body) of (name of taxing unit) at their offices or by
178	178	attending the public meeting mentioned above.
179	179	"Your taxes owed under any of the above rates can be
180	180	calculated as follows:
181	181	"Property tax amount = tax rate x taxable value of your
182	182	property / 100
183	183	"(Names of all members of the governing body, showing how
184	184	each voted on the proposed tax rate or, if one or more were absent,
185	185	indicating the absences.)
186	186	"Visit Texas.gov/PropertyTaxes to find a link to your local
187	187	property tax database on which you can easily access information
188	188	regarding your property taxes, including information about
189	189	proposed tax rates and scheduled public hearings of each entity
190	190	that taxes your property.
191	191	"The 86th Texas Legislature modified the manner in which the
192	192	voter-approval tax rate is calculated to limit the rate of growth of
193	193	property taxes in the state."
194	194	SECTION 3. Section 26.062, Tax Code, is amended by adding
195	195	Subsections (i), (j), (k), and (l) to read as follows:
196	196	(i) In addition to any other information required by law, a
197	197	notice required by Section 26.06(b-1), (b-2), or (b-3) or 26.061
198	198	must include, in a prominent location on the notice:
199	199	(1) a statement in the following form, followed by the
200	200	table described by Subsection (j):
201	201	"The following table compares the revenue generated by the
202	202	maintenance and operations rate and debt rate adopted by (name of
203	203	taxing unit) for the preceding tax year and the revenue that would
204	204	be generated by the maintenance and operations rate and debt rate
205	205	proposed to be adopted by (name of taxing unit) for the current tax
206	206	year.";
207	207	(2) a statement in the following form, followed by the
208	208	table described by Subsection (k):
209	209	"The following table compares the total taxable value of
210	210	property in the (name of taxing unit) in the preceding tax year and
211	211	the total taxable value of property in the (name of taxing unit) in
212	212	the current tax year."; and
213	213	(3) a statement in the following form, followed by the
214	214	table described by Subsection (l):
215	215	"Last year, (name of taxing unit) adopted a property tax rate
216	216	of (insert tax rate adopted by the taxing unit for the preceding tax
217	217	year), which generated (insert the amount computed by multiplying
218	218	the total taxable value of property in the taxing unit in the
219	219	preceding tax year by the tax rate adopted by the taxing unit for
220	220	the preceding tax year and dividing the product by 100) in tax
221	221	revenue for (name of taxing unit). The following table shows the
222	222	amounts of revenue that would be generated if (name of taxing unit)
223	223	adopted for the current tax year the no-new-revenue tax rate, the
224	224	voter-approval tax rate, and the proposed tax rate, respectively,
225	225	as calculated for that tax year."
226	226	(j) The table following the statement required by
227	227	Subsection (i)(1) must include three rows and four columns. The
228	228	first column of the first row must be left blank, the second column
229	229	of the first row must state the year corresponding to the preceding
230	230	tax year, the third column of the first row must state the year
231	231	corresponding to the current tax year, and the fourth column of the
232	232	first row must be entitled "Change". The first column of the second
233	233	row must be entitled "Maintenance and operations revenue", the
234	234	second column of the second row must state the amount of maintenance
235	235	and operations revenue attributable to ad valorem taxes imposed by
236	236	the taxing unit in the preceding tax year, the third column of the
237	237	second row must state the amount of the estimated maintenance and
238	238	operations revenue attributable to ad valorem taxes imposed by the
239	239	taxing unit in the current tax year, and the fourth column of the
240	240	second row must state the nominal difference between the amount of
241	241	maintenance and operations revenue attributable to ad valorem taxes
242	242	imposed by the taxing unit in the preceding tax year and the amount
243	243	of the estimated maintenance and operations revenue attributable to
244	244	ad valorem taxes imposed by the taxing unit in the current tax year.
245	245	The first column of the third row must be entitled "Debt
246	246	collections", the second column of the third row must state the
247	247	amount of revenue for debt service attributable to ad valorem taxes
248	248	imposed by the taxing unit in the preceding tax year, the third
249	249	column of the third row must state the estimated amount of revenue
250	250	for debt service attributable to ad valorem taxes imposed by the
251	251	taxing unit in the current tax year, and the fourth column of the
252	252	second row must state the nominal difference between the amount of
253	253	revenue for debt service attributable to ad valorem taxes imposed
254	254	by the taxing unit in the preceding tax year and the estimated
255	255	amount of revenue for debt service attributable to ad valorem taxes
256	256	imposed by the taxing unit in the current tax year.
257	257	(k) The table following the statement required by
258	258	Subsection (i)(2) must include two rows and four columns. The first
259	259	column of the first row must be left blank, the second column of the
260	260	first row must state the year corresponding to the preceding tax
261	261	year, the third column of the first row must state the year
262	262	corresponding to the current tax year, and the fourth column of the
263	263	first row must be entitled "Change". The first column of the second
264	264	row must be entitled "Total taxable value of property", the second
265	265	column of the second row must state the total taxable value of
266	266	property in the taxing unit in the preceding tax year, the third
267	267	column of the second row must state the total taxable value of
268	268	property in the taxing unit in the current tax year, and the fourth
269	269	column of the second row must state the nominal difference between
270	270	the total taxable value of property in the taxing unit in the
271	271	preceding tax year and the total taxable value of property in the
272	272	taxing unit in the current tax year.
273	273	(l) The table following the statement required by
274	274	Subsection (i)(3) must include two rows and four columns. The first
275	275	column of the first row must be left blank, the second column of the
276	276	first row must be entitled "No-new-revenue tax rate", the third
277	277	column of the first row must be entitled "Voter-approval tax rate",
278	278	and the fourth column of the first row must be entitled "Proposed
279	279	tax rate". The first column of the second row must be entitled
280	280	"Property tax revenue in current year", the second column of the
281	281	second row must state the amount computed by multiplying the total
282	282	taxable value of property in the taxing unit in the current tax year
283	283	by the no-new-revenue tax rate of the taxing unit for the current
284	284	tax year and dividing the product by 100, the third column of the
285	285	second row must state the amount computed by multiplying the total
286	286	taxable value of property in the taxing unit in the current tax year
287	287	by the voter-approval tax rate of the taxing unit for the current
288	288	tax year and dividing the product by 100, and the fourth column of
289	289	the second row must state the amount computed by multiplying the
290	290	total taxable value of property in the taxing unit in the current
291	291	tax year by the proposed tax rate of the taxing unit for the current
292	292	tax year and dividing the product by 100.
293	293	SECTION 4. The change in law made by this Act applies only
294	294	to a tax rate notice that is provided by a taxing unit on or after
295	295	the effective date of this Act. A tax rate notice that is provided
296	296	by a taxing unit before the effective date of this Act is governed
297	297	by the law in effect on the date the notice is provided, and the
298	298	former law is continued in effect for that purpose.
299	299	SECTION 5. This Act takes effect January 1, 2024.