Texas 2023 - 88th 3rd C.S.

Texas House Bill HB188 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Harrison H.B. No. 188
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the vote required in an election to approve an ad
7	7	valorem tax rate that exceeds a taxing unit's voter-approval tax
8	8	rate; making conforming changes.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 281.124(d) and (f), Health and Safety
11	11	Code, are amended to read as follows:
12	12	(d) If at least 60 percent [a majority] of the votes cast in
13	13	the election favor the proposition, the tax rate for the specified
14	14	tax year is the rate approved by the voters, and that rate is not
15	15	subject to Section 26.07, Tax Code. The board shall adopt the tax
16	16	rate as provided by Chapter 26, Tax Code.
17	17	(f) Notwithstanding any other law, if at least 60 percent [a
18	18	majority] of the votes cast in the election favor the proposition, a
19	19	governing body with approval authority over the district's budget
20	20	or tax rate may not disapprove the tax rate approved by the voters
21	21	or disapprove the budget based solely on the tax rate approved by
22	22	the voters.
23	23	SECTION 2. Section 1101.254(f), Special District Local Laws
24	24	Code, is amended to read as follows:
25	25	(f) This section does not affect the applicability of
26	26	Section 26.07, Tax Code, to the district's tax rate, except that if
27	27	at least 60 percent of the district voters approve a tax rate
28	28	increase under this section, Section 26.07, Tax Code, does not
29	29	apply to the tax rate for that year.
30	30	SECTION 3. Sections 26.06(b-1) and (b-3), Tax Code, are
31	31	amended to read as follows:
32	32	(b-1) If the proposed tax rate exceeds the no-new-revenue
33	33	tax rate and the voter-approval tax rate of the taxing unit, the
34	34	notice must contain a statement in the following form:
35	35	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
36	36	"PROPOSED TAX RATE $__________ per $100
37	37	"NO-NEW-REVENUE TAX RATE $__________ per $100
38	38	"VOTER-APPROVAL TAX RATE $__________ per $100
39	39	"The no-new-revenue tax rate is the tax rate for the (current
40	40	tax year) tax year that will raise the same amount of property tax
41	41	revenue for (name of taxing unit) from the same properties in both
42	42	the (preceding tax year) tax year and the (current tax year) tax
43	43	year.
44	44	"The voter-approval tax rate is the highest tax rate that
45	45	(name of taxing unit) may adopt without holding an election to seek
46	46	voter approval of the rate.
47	47	"The proposed tax rate is greater than the no-new-revenue tax
48	48	rate. This means that (name of taxing unit) is proposing to increase
49	49	property taxes for the (current tax year) tax year.
50	50	"A public hearing on the proposed tax rate will be held on
51	51	(date and time) at (meeting place).
52	52	"The proposed tax rate is also greater than the
53	53	voter-approval tax rate. If (name of taxing unit) adopts the
54	54	proposed tax rate, (name of taxing unit) is required to hold an
55	55	election so that the voters may accept or reject the proposed tax
56	56	rate. Unless at least 60 percent [If a majority] of the voters
57	57	accept [reject] the proposed tax rate, the tax rate of the (name of
58	58	taxing unit) will be the voter-approval tax rate. The election will
59	59	be held on (date of election). You may contact the (name of office
60	60	responsible for administering the election) for information about
61	61	voting locations. The hours of voting on election day are (voting
62	62	hours).
63	63	"Your taxes owed under any of the tax rates mentioned above
64	64	can be calculated as follows:
65	65	"Property tax amount = tax rate x taxable value of your
66	66	property / 100
67	67	"(Names of all members of the governing body, showing how
68	68	each voted on the proposal to consider the tax increase or, if one
69	69	or more were absent, indicating the absences.)
70	70	"Visit Texas.gov/PropertyTaxes to find a link to your local
71	71	property tax database on which you can easily access information
72	72	regarding your property taxes, including information about
73	73	proposed tax rates and scheduled public hearings of each entity
74	74	that taxes your property.
75	75	"The 86th Texas Legislature modified the manner in which the
76	76	voter-approval tax rate is calculated to limit the rate of growth of
77	77	property taxes in the state."
78	78	(b-3) If the proposed tax rate does not exceed the
79	79	no-new-revenue tax rate but exceeds the voter-approval tax rate of
80	80	the taxing unit, the notice must contain a statement in the
81	81	following form:
82	82	"NOTICE OF PUBLIC HEARING ON TAX RATE
83	83	"PROPOSED TAX RATE $__________ per $100
84	84	"NO-NEW-REVENUE TAX RATE $__________ per $100
85	85	"VOTER-APPROVAL TAX RATE $__________ per $100
86	86	"The no-new-revenue tax rate is the tax rate for the (current
87	87	tax year) tax year that will raise the same amount of property tax
88	88	revenue for (name of taxing unit) from the same properties in both
89	89	the (preceding tax year) tax year and the (current tax year) tax
90	90	year.
91	91	"The voter-approval tax rate is the highest tax rate that
92	92	(name of taxing unit) may adopt without holding an election to seek
93	93	voter approval of the rate.
94	94	"The proposed tax rate is not greater than the no-new-revenue
95	95	tax rate. This means that (name of taxing unit) is not proposing to
96	96	increase property taxes for the (current tax year) tax year.
97	97	"A public hearing on the proposed tax rate will be held on
98	98	(date and time) at (meeting place).
99	99	"The proposed tax rate is greater than the voter-approval tax
100	100	rate. If (name of taxing unit) adopts the proposed tax rate, (name
101	101	of taxing unit) is required to hold an election so that the voters
102	102	may accept or reject the proposed tax rate. Unless at least 60
103	103	percent [If a majority] of the voters accept [reject] the proposed
104	104	tax rate, the tax rate of the (name of taxing unit) will be the
105	105	voter-approval tax rate. The election will be held on (date of
106	106	election). You may contact the (name of office responsible for
107	107	administering the election) for information about voting
108	108	locations. The hours of voting on election day are (voting hours).
109	109	"Your taxes owed under any of the tax rates mentioned above
110	110	can be calculated as follows:
111	111	"Property tax amount = tax rate x taxable value of your
112	112	property / 100
113	113	"(Names of all members of the governing body, showing how
114	114	each voted on the proposal to consider the tax rate or, if one or
115	115	more were absent, indicating the absences.)
116	116	"Visit Texas.gov/PropertyTaxes to find a link to your local
117	117	property tax database on which you can easily access information
118	118	regarding your property taxes, including information about
119	119	proposed tax rates and scheduled public hearings of each entity
120	120	that taxes your property.
121	121	"The 86th Texas Legislature modified the manner in which the
122	122	voter-approval tax rate is calculated to limit the rate of growth of
123	123	property taxes in the state."
124	124	SECTION 4. Section 26.063(b), Tax Code, is amended to read
125	125	as follows:
126	126	(b) This subsection applies only to a taxing unit that is
127	127	required to hold an election under Section 26.07. In the notice
128	128	required to be provided by the taxing unit under Section 26.06(b-1)
129	129	or (b-3), as applicable, the taxing unit shall:
130	130	(1) add the following to the end of the list of rates
131	131	included in the notice:
132	132	"DE MINIMIS RATE $__________ per $100";
133	133	(2) substitute the following for the definition of
134	134	"voter-approval tax rate": "The voter-approval tax rate is the
135	135	highest tax rate that (name of taxing unit) may adopt without
136	136	holding an election to seek voter approval of the rate, unless the
137	137	de minimis rate for (name of taxing unit) exceeds the
138	138	voter-approval tax rate for (name of taxing unit).";
139	139	(3) add the following definition of "de minimis rate":
140	140	"The de minimis rate is the rate equal to the sum of the
141	141	no-new-revenue maintenance and operations rate for (name of taxing
142	142	unit), the rate that will raise $500,000, and the current debt rate
143	143	for (name of taxing unit)."; and
144	144	(4) substitute the following for the provision that
145	145	provides notice that an election is required: "The proposed tax
146	146	rate is greater than the voter-approval tax rate and the de minimis
147	147	rate. If (name of taxing unit) adopts the proposed tax rate, (name
148	148	of taxing unit) is required to hold an election so that the voters
149	149	may accept or reject the proposed tax rate. Unless at least 60
150	150	percent [If a majority] of the voters accept [reject] the proposed
151	151	tax rate, the tax rate of the (name of taxing unit) will be the
152	152	voter-approval tax rate of the (name of taxing unit). The election
153	153	will be held on (date of election). You may contact the (name of
154	154	office responsible for administering the election) for information
155	155	about voting locations. The hours of voting on election day are
156	156	(voting hours).".
157	157	SECTION 5. Section 26.07(d), Tax Code, is amended to read as
158	158	follows:
159	159	(d) If at least 60 percent [a majority] of the votes cast in
160	160	the election favor the proposition, the tax rate for the current
161	161	year is the rate that was adopted by the governing body.
162	162	SECTION 6. Section 26.08(c), Tax Code, is amended to read as
163	163	follows:
164	164	(c) If at least 60 percent [a majority] of the votes cast in
165	165	the election favor the proposition, the tax rate for the current
166	166	year is the rate that was adopted by the governing body.
167	167	SECTION 7. The changes in law made by this Act apply only to
168	168	an election held on or after the effective date of this Act. An
169	169	election held before the effective date of this Act is governed by
170	170	the law in effect on the date the election was held, and that law is
171	171	continued in effect for that purpose.
172	172	SECTION 8. This Act takes effect immediately if it receives
173	173	a vote of two-thirds of all the members elected to each house, as
174	174	provided by Section 39, Article III, Texas Constitution. If this
175	175	Act does not receive the vote necessary for immediate effect, this
176	176	Act takes effect on the 91st day after the last day of the
177	177	legislative session.