Texas 2023 - 88th Regular

Texas Senate Bill SB978 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R4679 CJC-D
2	2	By: Bettencourt, Middleton S.B. No. 978
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the repeal of provisions providing for the calculation
8	8	and effect of a de minimis ad valorem tax rate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 3828.157, Special District Local Laws
11	11	Code, is amended to read as follows:
12	12	Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE
13	13	PROVISIONS. Sections 26.04, 26.042, 26.05, and 26.07, [and
14	14	26.075,] Tax Code, do not apply to a tax imposed under Section
15	15	3828.153 or 3828.156.
16	16	SECTION 2. Section 8876.152(a), Special District Local Laws
17	17	Code, is amended to read as follows:
18	18	(a) Sections 26.04, 26.042, 26.05, 26.06, 26.061, and
19	19	26.07, [and 26.075,] Tax Code, do not apply to a tax imposed by the
20	20	district.
21	21	SECTION 3. Section 26.07(b), Tax Code, is amended to read as
22	22	follows:
23	23	(b) If the governing body of a [special] taxing unit [or a
24	24	municipality with a population of 30,000 or more] adopts a tax rate
25	25	that exceeds the taxing unit's voter-approval tax rate, [or the
26	26	governing body of a taxing unit other than a special taxing unit or
27	27	a municipality with a population of less than 30,000 regardless of
28	28	whether it is a special taxing unit adopts a tax rate that exceeds
29	29	the greater of the taxing unit's voter-approval tax rate or de
30	30	minimis rate,] the registered voters of the taxing unit at an
31	31	election held for that purpose must determine whether to approve
32	32	the adopted tax rate.
33	33	SECTION 4. Sections 31.12(a) and (b), Tax Code, are amended
34	34	to read as follows:
35	35	(a) If a refund of a tax provided by Section 11.431(b),
36	36	26.07(g), [26.075(k),] 26.15(f), 31.11, 31.111, or 31.112 is paid
37	37	on or before the 60th day after the date the liability for the
38	38	refund arises, no interest is due on the amount refunded. If not
39	39	paid on or before that 60th day, the amount of the tax to be refunded
40	40	accrues interest at a rate of one percent for each month or part of a
41	41	month that the refund is unpaid, beginning with the date on which
42	42	the liability for the refund arises.
43	43	(b) For purposes of this section, liability for a refund
44	44	arises:
45	45	(1) if the refund is required by Section 11.431(b), on
46	46	the date the chief appraiser notifies the collector for the taxing
47	47	unit of the approval of the late homestead exemption;
48	48	(2) if the refund is required by Section 26.07(g) [or
49	49	26.075(k)], on the date the results of the election to approve [or
50	50	reduce] the tax rate[, as applicable,] are certified;
51	51	(3) if the refund is required by Section 26.15(f):
52	52	(A) for a correction to the tax roll made under
53	53	Section 26.15(b), on the date the change in the tax roll is
54	54	certified to the assessor for the taxing unit under Section 25.25;
55	55	or
56	56	(B) for a correction to the tax roll made under
57	57	Section 26.15(c), on the date the change in the tax roll is ordered
58	58	by the governing body of the taxing unit;
59	59	(4) if the refund is required by Section 31.11, on the
60	60	date the auditor for the taxing unit determines that the payment was
61	61	erroneous or excessive or, if the amount of the refund exceeds the
62	62	applicable amount specified by Section 31.11(a), on the date the
63	63	governing body of the taxing unit approves the refund;
64	64	(5) if the refund is required by Section 31.111, on the
65	65	date the collector for the taxing unit determines that the payment
66	66	was erroneous; or
67	67	(6) if the refund is required by Section 31.112, on the
68	68	date required by Section 31.112(d) or (e), as applicable.
69	69	SECTION 5. Section 33.08(b), Tax Code, is amended to read as
70	70	follows:
71	71	(b) The governing body of the taxing unit or appraisal
72	72	district, in the manner required by law for official action, may
73	73	provide that taxes that become delinquent on or after June 1 under
74	74	Section [26.075(j),] 26.15(e), 31.03, 31.031, 31.032, 31.033,
75	75	31.04, or 42.42 incur an additional penalty to defray costs of
76	76	collection. The amount of the penalty may not exceed the amount of
77	77	the compensation specified in the applicable contract with an
78	78	attorney under Section 6.30 to be paid in connection with the
79	79	collection of the delinquent taxes.
80	80	SECTION 6. Section 49.107(g), Water Code, is amended to
81	81	read as follows:
82	82	(g) Sections 26.04, 26.042, 26.05, 26.061, and 26.07, [and
83	83	26.075,] Tax Code, do not apply to a tax levied and collected under
84	84	this section or an ad valorem tax levied and collected for the
85	85	payment of the interest on and principal of bonds issued by a
86	86	district.
87	87	SECTION 7. Section 49.108(f), Water Code, is amended to
88	88	read as follows:
89	89	(f) Sections 26.04, 26.042, 26.05, 26.061, and 26.07, [and
90	90	26.075,] Tax Code, do not apply to a tax levied and collected for
91	91	payments made under a contract approved in accordance with this
92	92	section.
93	93	SECTION 8. Section 49.23603, Water Code, is amended by
94	94	amending Subsection (c) and adding Subsections (d), (e), (f), (g),
95	95	(h), (i), (j), and (k) to read as follows:
96	96	(c) If the board of a district adopts a combined debt
97	97	service, contract, and operation and maintenance tax rate that
98	98	would impose more than 1.08 times the amount of tax imposed by the
99	99	district in the preceding year on a residence homestead appraised
100	100	at the average appraised value of a residence homestead in the
101	101	district in that year, disregarding any homestead exemption
102	102	available only to disabled persons or persons 65 years of age or
103	103	older, the qualified voters of the district by petition may require
104	104	that an election be held to determine whether to reduce the tax rate
105	105	adopted for the current year to the voter-approval tax rate in
106	106	accordance with the procedures provided by this section and Section
107	107	[Sections 26.075 and] 26.081, Tax Code.
108	108	(d) A petition is valid only if the petition:
109	109	(1) states that it is intended to require an election
110	110	in the district on the question of reducing the district's adopted
111	111	tax rate for the current tax year;
112	112	(2) is signed by a number of registered voters of the
113	113	district equal to at least three percent of the registered voters of
114	114	the district determined according to the most recent list of those
115	115	voters; and
116	116	(3) is submitted to the district's board not later than
117	117	the 90th day after the date on which the board adopts the tax rate
118	118	for the current tax year.
119	119	(e) Not later than the 20th day after the date on which a
120	120	petition is submitted, the board shall determine whether the
121	121	petition is valid and must by resolution state the board's
122	122	determination. If the board fails to make the determination in the
123	123	time and manner required by this subsection, the petition is
124	124	considered to be valid for the purposes of this section.
125	125	(f) If the board determines that the petition is valid or
126	126	fails to make the determination in the time and manner required by
127	127	Subsection (e), the board shall order that an election be held in
128	128	the district on the next uniform election date that allows
129	129	sufficient time to comply with the requirements of other law.
130	130	(g) At the election, the ballots shall be prepared to permit
131	131	voting for or against the proposition: "Reducing the tax rate in
132	132	(name of district) for the current year from (insert tax rate
133	133	adopted for current year) to (insert voter-approval tax rate)."
134	134	(h) If a majority of the votes cast in the election favor the
135	135	proposition, the tax rate for the current tax year is the
136	136	voter-approval tax rate.
137	137	(i) If the proposition is not approved as provided by
138	138	Subsection (h), the tax rate for the district for the current tax
139	139	year is the tax rate adopted by the district's board for the current
140	140	tax year.
141	141	(j) If the tax rate is reduced by an election held under this
142	142	section after tax bills for the district have been mailed, the
143	143	assessor for the district shall prepare and mail corrected tax
144	144	bills. The assessor shall include with the bill a brief explanation
145	145	of the reason for and effect of the corrected bill. The date on
146	146	which the taxes become delinquent for the tax year is extended by a
147	147	number of days equal to the number of days between the date the
148	148	first tax bills were sent and the date the corrected tax bills were
149	149	sent.
150	150	(k) If a property owner pays taxes calculated using the
151	151	higher tax rate when the tax rate is reduced by an election held
152	152	under this section, the district shall refund the difference
153	153	between the amount of taxes paid and the amount due under the
154	154	reduced tax rate if the difference between the amount of taxes paid
155	155	and the amount due under the reduced tax rate is $1 or more. If the
156	156	difference between the amount of taxes paid and the amount due under
157	157	the reduced rate is less than $1, the district shall refund the
158	158	difference on request of the taxpayer. An application for a refund
159	159	of less than $1 must be made within 90 days after the date the refund
160	160	becomes due or the taxpayer forfeits the right to the refund.
161	161	SECTION 9. The following provisions of the Tax Code are
162	162	repealed:
163	163	(1) Section 26.012(8-a);
164	164	(2) Section 26.063; and
165	165	(3) Section 26.075.
166	166	SECTION 10. This Act applies only to ad valorem taxes
167	167	imposed for an ad valorem tax year that begins on or after the
168	168	effective date of this Act.
169	169	SECTION 11. This Act takes effect January 1, 2024.