Texas 2023 - 88th Regular

Texas Senate Bill SB1814 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R30273 SHH-D
2	2	By: Bettencourt S.B. No. 1814
3	3	(Shine)
4	4	Substitute the following for S.B. No. 1814: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the current debt rate and tax rate of a taxing unit for
10	10	ad valorem tax purposes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 44.004(c), Education Code, is amended to
13	13	read as follows:
14	14	(c) The notice of public meeting to discuss and adopt the
15	15	budget and the proposed tax rate may not be smaller than one-quarter
16	16	page of a standard-size or a tabloid-size newspaper, and the
17	17	headline on the notice must be in 18-point or larger type. Subject
18	18	to Subsection (d), the notice must:
19	19	(1) contain a statement in the following form:
20	20	"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
21	21	"The (name of school district) will hold a public meeting at
22	22	(time, date, year) in (name of room, building, physical location,
23	23	city, state). The purpose of this meeting is to discuss the school
24	24	district's budget that will determine the tax rate that will be
25	25	adopted. Public participation in the discussion is invited." The
26	26	statement of the purpose of the meeting must be in bold type. In
27	27	reduced type, the notice must state: "The tax rate that is
28	28	ultimately adopted at this meeting or at a separate meeting at a
29	29	later date may not exceed the proposed rate shown below unless the
30	30	district publishes a revised notice containing the same information
31	31	and comparisons set out below and holds another public meeting to
32	32	discuss the revised notice." In addition, in reduced type, the
33	33	notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
34	34	your local property tax database on which you can easily access
35	35	information regarding your property taxes, including information
36	36	about proposed tax rates and scheduled public hearings of each
37	37	entity that taxes your property.";
38	38	(2) contain a section entitled "Comparison of Proposed
39	39	Budget with Last Year's Budget," which must show the difference,
40	40	expressed as a percent increase or decrease, as applicable, in the
41	41	amounts budgeted for the preceding fiscal year and the amount
42	42	budgeted for the fiscal year that begins in the current tax year for
43	43	each of the following:
44	44	(A) maintenance and operations;
45	45	(B) debt service; and
46	46	(C) total expenditures;
47	47	(3) contain a section entitled "Total Appraised Value
48	48	and Total Taxable Value," which must show the total appraised value
49	49	and the total taxable value of all property and the total appraised
50	50	value and the total taxable value of new property taxable by the
51	51	district in the preceding tax year and the current tax year as
52	52	calculated under Section 26.04, Tax Code;
53	53	(4) contain a statement of the total amount of the
54	54	outstanding and unpaid bonded indebtedness of the school district;
55	55	(5) contain a section entitled "Comparison of Proposed
56	56	Rates with Last Year's Rates," which must:
57	57	(A) show in rows the tax rates described by
58	58	Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
59	59	property, for columns entitled "Maintenance & Operations,"
60	60	"Interest & Sinking Fund," and "Total," which is the sum of
61	61	"Maintenance & Operations" and "Interest & Sinking Fund":
62	62	(i) the school district's "Last Year's
63	63	Rate";
64	64	(ii) the "Rate to Maintain Same Level of
65	65	Maintenance & Operations Revenue & Pay Debt Service," which:
66	66	(a) in the case of "Maintenance &
67	67	Operations," is the tax rate that, when applied to the current
68	68	taxable value for the district, as certified by the chief appraiser
69	69	under Section 26.01, Tax Code, and as adjusted to reflect changes
70	70	made by the chief appraiser as of the time the notice is prepared,
71	71	would impose taxes in an amount that, when added to state funds to
72	72	be distributed to the district under Chapter 48, would provide the
73	73	same amount of maintenance and operations taxes and state funds
74	74	distributed under Chapter 48 per student in average daily
75	75	attendance for the applicable school year that was available to the
76	76	district in the preceding school year; and
77	77	(b) in the case of "Interest & Sinking
78	78	Fund," is the tax rate that, when applied to the current taxable
79	79	value for the district, as certified by the chief appraiser under
80	80	Section 26.01, Tax Code, and as adjusted to reflect changes made by
81	81	the chief appraiser as of the time the notice is prepared, and when
82	82	multiplied by the district's anticipated collection rate, would
83	83	impose taxes in an amount that, when added to state funds to be
84	84	distributed to the district under Chapter 46 and any excess taxes
85	85	collected to service the district's debt during the preceding tax
86	86	year but not used for that purpose during that year, would provide
87	87	the minimum dollar amount required to be paid to service the
88	88	district's debt; and
89	89	(iii) the "Proposed Rate";
90	90	(B) contain fourth and fifth columns aligned with
91	91	the columns required by Paragraph (A) that show, for each row
92	92	required by Paragraph (A):
93	93	(i) the "Local Revenue per Student," which
94	94	is computed by multiplying the district's total taxable value of
95	95	property, as certified by the chief appraiser for the applicable
96	96	school year under Section 26.01, Tax Code, and as adjusted to
97	97	reflect changes made by the chief appraiser as of the time the
98	98	notice is prepared, by the total tax rate, and dividing the product
99	99	by the number of students in average daily attendance in the
100	100	district for the applicable school year; and
101	101	(ii) the "State Revenue per Student," which
102	102	is computed by determining the amount of state aid received or to be
103	103	received by the district under Chapters 43, 46, and 48 and dividing
104	104	that amount by the number of students in average daily attendance in
105	105	the district for the applicable school year; and
106	106	(C) contain an asterisk after each calculation
107	107	for "Interest & Sinking Fund" and a footnote to the section that, in
108	108	reduced type, states "The Interest & Sinking Fund tax revenue is
109	109	used to pay for bonded indebtedness on construction, equipment, or
110	110	both. The bonds, and the tax rate necessary to pay those bonds, were
111	111	approved by the voters of this district.";
112	112	(6) contain a section entitled "Comparison of Proposed
113	113	Levy with Last Year's Levy on Average Residence," which must:
114	114	(A) show in rows the information described by
115	115	Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
116	116	entitled "Last Year" and "This Year":
117	117	(i) "Average Market Value of Residences,"
118	118	determined using the same group of residences for each year;
119	119	(ii) "Average Taxable Value of Residences,"
120	120	determined after taking into account the limitation on the
121	121	appraised value of residences under Section 23.23, Tax Code, and
122	122	after subtracting all homestead exemptions applicable in each year,
123	123	other than exemptions available only to disabled persons or persons
124	124	65 years of age or older or their surviving spouses, and using the
125	125	same group of residences for each year;
126	126	(iii) "Last Year's Rate Versus Proposed
127	127	Rate per $100 Value"; and
128	128	(iv) "Taxes Due on Average Residence,"
129	129	determined using the same group of residences for each year; and
130	130	(B) contain the following information: "Increase
131	131	(Decrease) in Taxes" expressed in dollars and cents, which is
132	132	computed by subtracting the "Taxes Due on Average Residence" for
133	133	the preceding tax year from the "Taxes Due on Average Residence" for
134	134	the current tax year;
135	135	(7) contain the following statement in bold print:
136	136	"Under state law, the dollar amount of school taxes imposed on the
137	137	residence of a person 65 years of age or older or of the surviving
138	138	spouse of such a person, if the surviving spouse was 55 years of age
139	139	or older when the person died, may not be increased above the amount
140	140	paid in the first year after the person turned 65, regardless of
141	141	changes in tax rate or property value.";
142	142	(8) contain the following statement in bold print:
143	143	"Notice of Voter-Approval Rate: The highest tax rate the district
144	144	can adopt before requiring voter approval at an election is (the
145	145	school district voter-approval rate determined under Section
146	146	26.08, Tax Code). This election will be automatically held if the
147	147	district adopts a rate in excess of the voter-approval rate of (the
148	148	school district voter-approval rate)."; and
149	149	(9) contain a section entitled "Fund Balances," which
150	150	must include the estimated amount of interest and sinking fund
151	151	balances and the estimated amount of maintenance and operation or
152	152	general fund balances remaining at the end of the current fiscal
153	153	year that are not encumbered with or by corresponding debt
154	154	obligation, less estimated funds necessary for the operation of the
155	155	district before the receipt of the first payment under Chapter 48 in
156	156	the succeeding school year.
157	157	SECTION 2. Section 26.012(3), Tax Code, is amended to read
158	158	as follows:
159	159	(3) "Current debt service" means the minimum dollar
160	160	amount required to be expended for debt service for the current
161	161	year.
162	162	SECTION 3. Section 26.04(e), Tax Code, is amended to read as
163	163	follows:
164	164	(e) By August 7 or as soon thereafter as practicable, the
165	165	designated officer or employee shall submit the rates to the
166	166	governing body. The designated officer or employee shall post
167	167	prominently on the home page of the taxing unit's Internet website
168	168	in the form prescribed by the comptroller:
169	169	(1) the no-new-revenue tax rate, the voter-approval
170	170	tax rate, and an explanation of how they were calculated;
171	171	(2) the estimated amount of interest and sinking fund
172	172	balances and the estimated amount of maintenance and operation or
173	173	general fund balances remaining at the end of the current fiscal
174	174	year that are not encumbered with or by corresponding existing debt
175	175	obligation; and
176	176	(3) a schedule of the taxing unit's debt obligations
177	177	showing:
178	178	(A) the minimum dollar amount of principal and
179	179	interest required to [that will] be paid to service the taxing
180	180	unit's debts in the next year from property tax revenue, including
181	181	payments of lawfully incurred contractual obligations providing
182	182	security for the payment of the principal of and interest on bonds
183	183	and other evidences of indebtedness issued on behalf of the taxing
184	184	unit by another political subdivision and, if the taxing unit is
185	185	created under Section 52, Article III, or Section 59, Article XVI,
186	186	Texas Constitution, payments on debts that the taxing unit
187	187	anticipates to incur in the next calendar year;
188	188	(B) the amount by which taxes imposed for debt
189	189	are to be increased because of the taxing unit's anticipated
190	190	collection rate; and
191	191	(C) the total of the amounts listed in Paragraphs
192	192	(A)-(B), less any amount collected in excess of the previous year's
193	193	anticipated collections certified as provided in Subsection (b).
194	194	SECTION 4. Section 26.05, Tax Code, is amended by adding
195	195	Subsections (a-1) and (a-2) to read as follows:
196	196	(a-1) The governing body of a taxing unit may approve a rate
197	197	described by Subsection (a)(1) that exceeds the rate for the taxing
198	198	unit as determined under that subsection only if:
199	199	(1) the rate is proposed to be approved by a motion
200	200	that:
201	201	(A) states the rate determined under Subsection
202	202	(a)(1);
203	203	(B) states the proposed rate;
204	204	(C) states the difference between the proposed
205	205	rate and the rate determined under Subsection (a)(1); and
206	206	(D) describes the purpose for which the excess
207	207	revenue collected from the proposed rate will be used; and
208	208	(2) the motion is approved by at least 60 percent of
209	209	the members of the governing body.
210	210	(a-2) If the governing body of a taxing unit approves a rate
211	211	described by Subsection (a)(1) under Subsection (a-1) for a tax
212	212	year, the rate approved under Subsection (a-1) is considered to be
213	213	the current debt rate of the taxing unit for that tax year. The
214	214	officer or employee designated by the governing body to calculate
215	215	the voter-approval tax rate of the taxing unit under this chapter
216	216	shall recalculate that rate to account for the new current debt
217	217	rate, and that recalculated voter-approval tax rate is considered
218	218	to be the voter-approval tax rate of the taxing unit for that tax
219	219	year.
220	220	SECTION 5. This Act applies only to ad valorem taxes imposed
221	221	for an ad valorem tax year that begins on or after the effective
222	222	date of this Act.
223	223	SECTION 6. This Act takes effect January 1, 2024.