Texas 2025 - 89th Regular

Texas Senate Bill SB1453 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Bettencourt S.B. No. 1453
2		-
3		-
	2	+	(In the Senate - Filed February 19, 2025; March 6, 2025,
	3	+	read first time and referred to Committee on Local Government;
	4	+	March 31, 2025, reported favorably by the following vote: Yeas 4,
	5	+	Nays 1; March 31, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to the current debt rate and tax rate of a taxing unit for
9	12		ad valorem tax purposes.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Section 44.004(c), Education Code, is amended to
12	15		read as follows:
13	16		(c) The notice of public meeting to discuss and adopt the
14	17		budget and the proposed tax rate may not be smaller than one-quarter
15	18		page of a standard-size or a tabloid-size newspaper, and the
16	19		headline on the notice must be in 18-point or larger type. Subject
17	20		to Subsection (d), the notice must:
18	21		(1) contain a statement in the following form:
19	22		"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
20	23		"The (name of school district) will hold a public meeting at
21	24		(time, date, year) in (name of room, building, physical location,
22	25		city, state). The purpose of this meeting is to discuss the school
23	26		district's budget that will determine the tax rate that will be
24	27		adopted. Public participation in the discussion is invited." The
25	28		statement of the purpose of the meeting must be in bold type. In
26	29		reduced type, the notice must state: "The tax rate that is
27	30		ultimately adopted at this meeting or at a separate meeting at a
28	31		later date may not exceed the proposed rate shown below unless the
29	32		district publishes a revised notice containing the same information
30	33		and comparisons set out below and holds another public meeting to
31	34		discuss the revised notice." In addition, in reduced type, the
32	35		notice must state: "Visit Texas.gov/PropertyTaxes to find a link to
33	36		your local property tax database on which you can easily access
34	37		information regarding your property taxes, including information
35	38		about proposed tax rates and scheduled public hearings of each
36	39		entity that taxes your property.";
37	40		(2) contain a section entitled "Comparison of Proposed
38	41		Budget with Last Year's Budget," which must show the difference,
39	42		expressed as a percent increase or decrease, as applicable, in the
40	43		amounts budgeted for the preceding fiscal year and the amount
41	44		budgeted for the fiscal year that begins in the current tax year for
42	45		each of the following:
43	46		(A) maintenance and operations;
44	47		(B) debt service; and
45	48		(C) total expenditures;
46	49		(3) contain a section entitled "Total Appraised Value
47	50		and Total Taxable Value," which must show the total appraised value
48	51		and the total taxable value of all property and the total appraised
49	52		value and the total taxable value of new property taxable by the
50	53		district in the preceding tax year and the current tax year as
51	54		calculated under Section 26.04, Tax Code;
52	55		(4) contain a statement of the total amount of the
53	56		outstanding and unpaid bonded indebtedness of the school district;
54	57		(5) contain a section entitled "Comparison of Proposed
55	58		Rates with Last Year's Rates," which must:
56	59		(A) show in rows the tax rates described by
57	60		Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
58	61		property, for columns entitled "Maintenance & Operations,"
59	62		"Interest & Sinking Fund," and "Total," which is the sum of
60	63		"Maintenance & Operations" and "Interest & Sinking Fund":
61	64		(i) the school district's "Last Year's
62	65		Rate";
63	66		(ii) the "Rate to Maintain Same Level of
64	67		Maintenance & Operations Revenue & Pay Debt Service," which:
65	68		(a) in the case of "Maintenance &
66	69		Operations," is the tax rate that, when applied to the current
67	70		taxable value for the district, as certified by the chief appraiser
68	71		under Section 26.01, Tax Code, and as adjusted to reflect changes
69	72		made by the chief appraiser as of the time the notice is prepared,
70	73		would impose taxes in an amount that, when added to state funds to
71	74		be distributed to the district under Chapter 48, would provide the
72	75		same amount of maintenance and operations taxes and state funds
73	76		distributed under Chapter 48 per student in average daily
74	77		attendance for the applicable school year that was available to the
75	78		district in the preceding school year; and
76	79		(b) in the case of "Interest & Sinking
77	80		Fund," is the tax rate that, when applied to the current taxable
78	81		value for the district, as certified by the chief appraiser under
79	82		Section 26.01, Tax Code, and as adjusted to reflect changes made by
80	83		the chief appraiser as of the time the notice is prepared, and when
81	84		multiplied by the district's anticipated collection rate, would
82	85		impose taxes in an amount that, when added to state funds to be
83	86		distributed to the district under Chapter 46 and any excess taxes
84	87		collected to service the district's debt during the preceding tax
85	88		year but not used for that purpose during that year, would provide
86	89		the minimum dollar amount required to be paid to service the
87	90		district's debt; and
88	91		(iii) the "Proposed Rate";
89	92		(B) contain fourth and fifth columns aligned with
90	93		the columns required by Paragraph (A) that show, for each row
91	94		required by Paragraph (A):
92	95		(i) the "Local Revenue per Student," which
93	96		is computed by multiplying the district's total taxable value of
94	97		property, as certified by the chief appraiser for the applicable
95	98		school year under Section 26.01, Tax Code, and as adjusted to
96	99		reflect changes made by the chief appraiser as of the time the
97	100		notice is prepared, by the total tax rate, and dividing the product
98	101		by the number of students in average daily attendance in the
99	102		district for the applicable school year; and
100	103		(ii) the "State Revenue per Student," which
101	104		is computed by determining the amount of state aid received or to be
102	105		received by the district under Chapters 43, 46, and 48 and dividing
103	106		that amount by the number of students in average daily attendance in
104	107		the district for the applicable school year; and
105	108		(C) contain an asterisk after each calculation
106	109		for "Interest & Sinking Fund" and a footnote to the section that, in
107	110		reduced type, states "The Interest & Sinking Fund tax revenue is
108	111		used to pay for bonded indebtedness on construction, equipment, or
109	112		both. The bonds, and the tax rate necessary to pay those bonds, were
110	113		approved by the voters of this district.";
111	114		(6) contain a section entitled "Comparison of Proposed
112	115		Levy with Last Year's Levy on Average Residence," which must:
113	116		(A) show in rows the information described by
114	117		Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
115	118		entitled "Last Year" and "This Year":
116	119		(i) "Average Market Value of Residences,"
117	120		determined using the same group of residences for each year;
118	121		(ii) "Average Taxable Value of Residences,"
119	122		determined after taking into account the limitation on the
120	123		appraised value of residences under Section 23.23, Tax Code, and
121	124		after subtracting all homestead exemptions applicable in each year,
122	125		other than exemptions available only to disabled persons or persons
123	126		65 years of age or older or their surviving spouses, and using the
124	127		same group of residences for each year;
125	128		(iii) "Last Year's Rate Versus Proposed
126	129		Rate per $100 Value"; and
127	130		(iv) "Taxes Due on Average Residence,"
128	131		determined using the same group of residences for each year; and
129	132		(B) contain the following information: "Increase
130	133		(Decrease) in Taxes" expressed in dollars and cents, which is
131	134		computed by subtracting the "Taxes Due on Average Residence" for
132	135		the preceding tax year from the "Taxes Due on Average Residence" for
133	136		the current tax year;
134	137		(7) contain the following statement in bold print:
135	138		"Under state law, the dollar amount of school taxes imposed on the
136	139		residence of a person 65 years of age or older or of the surviving
137	140		spouse of such a person, if the surviving spouse was 55 years of age
138	141		or older when the person died, may not be increased above the amount
139	142		paid in the first year after the person turned 65, regardless of
140	143		changes in tax rate or property value.";
141	144		(8) contain the following statement in bold print:
142	145		"Notice of Voter-Approval Rate: The highest tax rate the district
143	146		can adopt before requiring voter approval at an election is (the
144	147		school district voter-approval rate determined under Section
145	148		26.08, Tax Code). This election will be automatically held if the
146	149		district adopts a rate in excess of the voter-approval rate of (the
147	150		school district voter-approval rate)."; and
148	151		(9) contain a section entitled "Fund Balances," which
149	152		must include the estimated amount of interest and sinking fund
150	153		balances and the estimated amount of maintenance and operation or
151	154		general fund balances remaining at the end of the current fiscal
152	155		year that are not encumbered with or by corresponding debt
153	156		obligation, less estimated funds necessary for the operation of the
154	157		district before the receipt of the first payment under Chapter 48 in
155	158		the succeeding school year.
156	159		SECTION 2. Section 26.012(3), Tax Code, is amended to read
157	160		as follows:
158	161		(3) "Current debt service" means the minimum dollar
159	162		amount required to be expended for debt service for the current
160	163		year.
161	164		SECTION 3. Section 26.04(e), Tax Code, is amended to read as
162	165		follows:
163	166		(e) By August 7 or as soon thereafter as practicable, the
164	167		designated officer or employee shall submit the rates to the
165	168		governing body. The designated officer or employee shall post
166	169		prominently on the home page of the taxing unit's Internet website
167	170		in the form prescribed by the comptroller:
168	171		(1) the no-new-revenue tax rate, the voter-approval
169	172		tax rate, and an explanation of how they were calculated;
170	173		(2) the estimated amount of interest and sinking fund
171	174		balances and the estimated amount of maintenance and operation or
172	175		general fund balances remaining at the end of the current fiscal
173	176		year that are not encumbered with or by corresponding existing debt
174	177		obligation; and
175	178		(3) a schedule of the taxing unit's debt obligations
176	179		showing:
177	180		(A) the minimum dollar amount of principal and
178	181		interest required to [that will] be paid to service the taxing
179	182		unit's debts in the next year from property tax revenue, including
180	183		payments of lawfully incurred contractual obligations providing
181	184		security for the payment of the principal of and interest on bonds
182	185		and other evidences of indebtedness issued on behalf of the taxing
183	186		unit by another political subdivision and, if the taxing unit is
184	187		created under Section 52, Article III, or Section 59, Article XVI,
185	188		Texas Constitution, payments on debts that the taxing unit
186	189		anticipates to incur in the next calendar year;
187	190		(B) the amount by which taxes imposed for debt
188	191		are to be increased because of the taxing unit's anticipated
189	192		collection rate; and
190	193		(C) the total of the amounts listed in Paragraphs
191	194		(A)-(B), less any amount collected in excess of the previous year's
192	195		anticipated collections certified as provided in Subsection (b).
193	196		SECTION 4. Section 26.05, Tax Code, is amended by adding
194	197		Subsections (a-1) and (a-2) to read as follows:
195	198		(a-1) The governing body of a taxing unit may approve a rate
196	199		described by Subsection (a)(1) that exceeds the rate for the taxing
197	200		unit as determined under that subsection only if:
198	201		(1) the rate is proposed to be approved by a motion
199	202		that:
200	203		(A) states the rate determined under Subsection
201	204		(a)(1);
202	205		(B) states the proposed rate;
203	206		(C) states the difference between the proposed
204	207		rate and the rate determined under Subsection (a)(1); and
205	208		(D) describes the purpose for which the excess
206	209		revenue collected from the proposed rate will be used; and
207	210		(2) the motion is approved by at least 60 percent of
208	211		the members of the governing body.
209	212		(a-2) If the governing body of a taxing unit approves a rate
210	213		described by Subsection (a)(1) under Subsection (a-1) for a tax
211	214		year, the rate approved under Subsection (a-1) is considered to be
212	215		the current debt rate of the taxing unit for that tax year. The
213	216		officer or employee designated by the governing body to calculate
214	217		the voter-approval tax rate of the taxing unit under this chapter
215	218		shall recalculate that rate to account for the new current debt
216	219		rate, and that recalculated voter-approval tax rate is considered
217	220		to be the voter-approval tax rate of the taxing unit for that tax
218	221		year.
219	222		SECTION 5. This Act applies only to ad valorem taxes imposed
220	223		for an ad valorem tax year that begins on or after the effective
221	224		date of this Act.
222	225		SECTION 6. This Act takes effect January 1, 2026.
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