88R13537 CJC-F
By: Harrison H.B. No. 4852
A BILL TO BE ENTITLED
AN ACT
relating to the form of a notice of public hearing on a proposed ad
valorem tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 26.06(b-1), (b-2), and (b-3), Tax Code,
are amended to read as follows:
(b-1) If the proposed tax rate exceeds the no-new-revenue
tax rate and the voter-approval tax rate of the taxing unit, the
notice must contain a statement in the following form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"LAST YEAR'S TAX RATE $__________ per $100
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"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.
"The proposed tax rate is greater than the no-new-revenue tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"The proposed tax rate is also greater than the
voter-approval tax rate. If (name of taxing unit) adopts the
proposed tax rate, (name of taxing unit) is required to hold an
election so that the voters may accept or reject the proposed tax
rate. If a majority of the voters reject the proposed tax rate, the
tax rate of the (name of taxing unit) will be the voter-approval tax
rate. The election will be held on (date of election). You may
contact the (name of office responsible for administering the
election) for information about voting locations. The hours of
voting on election day are (voting hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
(b-2) If the proposed tax rate exceeds the no-new-revenue
tax rate but does not exceed the voter-approval tax rate of the
taxing unit, the notice must contain a statement in the following
form:
"NOTICE OF PUBLIC HEARING ON TAX INCREASE
"LAST YEAR'S TAX RATE $__________ per $100
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"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.
"The proposed tax rate is greater than the no-new-revenue tax
rate. This means that (name of taxing unit) is proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"The proposed tax rate is not greater than the voter-approval
tax rate. As a result, (name of taxing unit) is not required to
hold an election at which voters may accept or reject the proposed
tax rate. However, you may express your support for or opposition
to the proposed tax rate by contacting the members of the (name of
governing body) of (name of taxing unit) at their offices or by
attending the public hearing mentioned above.
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax increase or, if one
or more were absent, indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
(b-3) If the proposed tax rate does not exceed the
no-new-revenue tax rate but exceeds the voter-approval tax rate of
the taxing unit, the notice must contain a statement in the
following form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"LAST YEAR'S TAX RATE $__________ per $100
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"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.
"The proposed tax rate is not greater than the no-new-revenue
tax rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public hearing on the proposed tax rate will be held on
(date and time) at (meeting place).
"The proposed tax rate is greater than the voter-approval tax
rate. If (name of taxing unit) adopts the proposed tax rate, (name
of taxing unit) is required to hold an election so that the voters
may accept or reject the proposed tax rate. If a majority of the
voters reject the proposed tax rate, the tax rate of the (name of
taxing unit) will be the voter-approval tax rate. The election
will be held on (date of election). You may contact the (name of
office responsible for administering the election) for information
about voting locations. The hours of voting on election day are
(voting hours).
"Your taxes owed under any of the tax rates mentioned above
can be calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposal to consider the tax rate or, if one or
more were absent, indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
SECTION 2. Section 26.061(b), Tax Code, is amended to read
as follows:
(b) The notice of the meeting at which the governing body of
the taxing unit will vote on the proposed tax rate must contain a
statement in the following form:
"NOTICE OF MEETING TO VOTE ON TAX RATE
"LAST YEAR'S TAX RATE $__________ per $100
"PROPOSED TAX RATE $__________ per $100
"NO-NEW-REVENUE TAX RATE $__________ per $100
"VOTER-APPROVAL TAX RATE $__________ per $100
"The no-new-revenue tax rate is the tax rate for the (current
tax year) tax year that will raise the same amount of property tax
revenue for (name of taxing unit) from the same properties in both
the (preceding tax year) tax year and the (current tax year) tax
year.
"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.
"The proposed tax rate is not greater than the no-new-revenue
tax rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public meeting to vote on the proposed tax rate will be
held on (date and time) at (meeting place).
"The proposed tax rate is also not greater than the
voter-approval tax rate. As a result, (name of taxing unit) is not
required to hold an election to seek voter approval of the
rate. However, you may express your support for or opposition to
the proposed tax rate by contacting the members of the (name of
governing body) of (name of taxing unit) at their offices or by
attending the public meeting mentioned above.
"Your taxes owed under any of the above rates can be
calculated as follows:
"Property tax amount = tax rate x taxable value of your
property / 100
"(Names of all members of the governing body, showing how
each voted on the proposed tax rate or, if one or more were absent,
indicating the absences.)
"Visit Texas.gov/PropertyTaxes to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
SECTION 3. Section 26.062, Tax Code, is amended by adding
Subsections (i), (j), (k), and (l) to read as follows:
(i) In addition to any other information required by law, a
notice required by Section 26.06(b-1), (b-2), or (b-3) or 26.061
must include, in a prominent location on the notice:
(1) a statement in the following form, followed by the
table described by Subsection (j):
"The following table compares the revenue generated by the
maintenance and operations rate and debt rate adopted by (name of
taxing unit) for the preceding tax year and the revenue that would
be generated by the maintenance and operations rate and debt rate
proposed to be adopted by (name of taxing unit) for the current tax
year.";
(2) a statement in the following form, followed by the
table described by Subsection (k):
"The following table compares the total taxable value of
property in the (name of taxing unit) in the preceding tax year and
the total taxable value of property in the (name of taxing unit) in
the current tax year."; and
(3) a statement in the following form, followed by the
table described by Subsection (l):
"Last year, (name of taxing unit) adopted a property tax rate
of (insert tax rate adopted by the taxing unit for the preceding tax
year), which generated (insert the amount computed by multiplying
the total taxable value of property in the taxing unit in the
preceding tax year by the tax rate adopted by the taxing unit for
the preceding tax year and dividing the product by 100) in tax
revenue for (name of taxing unit). The following table shows the
amounts of revenue that would be generated if (name of taxing unit)
adopted for the current tax year the no-new-revenue tax rate, the
voter-approval tax rate, and the proposed tax rate, respectively,
as calculated for that tax year."
(j) The table following the statement required by
Subsection (i)(1) must include three rows and four columns. The
first column of the first row must be left blank, the second column
of the first row must state the year corresponding to the preceding
tax year, the third column of the first row must state the year
corresponding to the current tax year, and the fourth column of the
first row must be entitled "Change". The first column of the second
row must be entitled "Maintenance and operations revenue", the
second column of the second row must state the amount of maintenance
and operations revenue attributable to ad valorem taxes imposed by
the taxing unit in the preceding tax year, the third column of the
second row must state the amount of the estimated maintenance and
operations revenue attributable to ad valorem taxes imposed by the
taxing unit in the current tax year, and the fourth column of the
second row must state the nominal difference between the amount of
maintenance and operations revenue attributable to ad valorem taxes
imposed by the taxing unit in the preceding tax year and the amount
of the estimated maintenance and operations revenue attributable to
ad valorem taxes imposed by the taxing unit in the current tax year.
The first column of the third row must be entitled "Debt
collections", the second column of the third row must state the
amount of revenue for debt service attributable to ad valorem taxes
imposed by the taxing unit in the preceding tax year, the third
column of the third row must state the estimated amount of revenue
for debt service attributable to ad valorem taxes imposed by the
taxing unit in the current tax year, and the fourth column of the
second row must state the nominal difference between the amount of
revenue for debt service attributable to ad valorem taxes imposed
by the taxing unit in the preceding tax year and the estimated
amount of revenue for debt service attributable to ad valorem taxes
imposed by the taxing unit in the current tax year.
(k) The table following the statement required by
Subsection (i)(2) must include two rows and four columns. The first
column of the first row must be left blank, the second column of the
first row must state the year corresponding to the preceding tax
year, the third column of the first row must state the year
corresponding to the current tax year, and the fourth column of the
first row must be entitled "Change". The first column of the second
row must be entitled "Total taxable value of property", the second
column of the second row must state the total taxable value of
property in the taxing unit in the preceding tax year, the third
column of the second row must state the total taxable value of
property in the taxing unit in the current tax year, and the fourth
column of the second row must state the nominal difference between
the total taxable value of property in the taxing unit in the
preceding tax year and the total taxable value of property in the
taxing unit in the current tax year.
(l) The table following the statement required by
Subsection (i)(3) must include two rows and four columns. The first
column of the first row must be left blank, the second column of the
first row must be entitled "No-new-revenue tax rate", the third
column of the first row must be entitled "Voter-approval tax rate",
and the fourth column of the first row must be entitled "Proposed
tax rate". The first column of the second row must be entitled
"Property tax revenue in current year", the second column of the
second row must state the amount computed by multiplying the total
taxable value of property in the taxing unit in the current tax year
by the no-new-revenue tax rate of the taxing unit for the current
tax year and dividing the product by 100, the third column of the
second row must state the amount computed by multiplying the total
taxable value of property in the taxing unit in the current tax year
by the voter-approval tax rate of the taxing unit for the current
tax year and dividing the product by 100, and the fourth column of
the second row must state the amount computed by multiplying the
total taxable value of property in the taxing unit in the current
tax year by the proposed tax rate of the taxing unit for the current
tax year and dividing the product by 100.
SECTION 4. 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 5. This Act takes effect January 1, 2024.