89R11031 CJC-D
By: Bettencourt S.B. No. 2528
A BILL TO BE ENTITLED
AN ACT
relating to the calculation of the petition election tax rate for
certain taxing units and the ability of the voters to petition for
an election to determine whether to reduce the ad valorem tax rate
adopted by those taxing units to the petition election tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.07(f), Tax Code, is amended to read as
follows:
(f) The comptroller shall prescribe tax rate calculation
forms to be used by the designated officer or employee of each
taxing unit to calculate and submit the no-new-revenue tax rate,
[and] the voter-approval tax rate, and, if applicable, the petition
election tax rate for the taxing unit as required by Chapter 26.
SECTION 2. The heading to Section 26.04, Tax Code, is
amended to read as follows:
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY;
NO-NEW-REVENUE, [AND] VOTER-APPROVAL, AND PETITION ELECTION TAX
RATES.
SECTION 3. Section 26.04, Tax Code, is amended by adding
Subsection (c-1) and amending Subsections (c-2), (d-1), (d-2),
(d-3), (e), (e-5), and (f) to read as follows:
(c-1) This subsection applies only to a taxing unit that is
a hospital district or a junior college district. In addition to
the tax rates an officer or employee designated by the governing
body of a taxing unit to which this section applies is required to
calculate under Subsection (c), the officer or employee shall
calculate the petition election tax rate for the taxing unit
according to the formula prescribed by Section 26.076.
(c-2) Notwithstanding any other provision of this section,
if the assessor for a taxing unit receives a certified estimate of
the taxable value of property in the taxing unit under Section
26.01(a-1), the officer or employee designated by the governing
body of the taxing unit shall calculate the no-new-revenue tax
rate, the [and] voter-approval tax rate, and, if applicable, the
petition election tax rate using the certified estimate of taxable
value.
(d-1) The designated officer or employee shall use the tax
rate calculation forms prescribed by the comptroller under Section
5.07 in calculating the no-new-revenue tax rate, [and] the
voter-approval tax rate, and, if applicable, the petition election
tax rate.
(d-2) The designated officer or employee may not submit the
no-new-revenue tax rate, [and] the voter-approval tax rate, and, if
applicable, the petition election tax rate to the governing body of
the taxing unit and the taxing unit may not adopt a tax rate until
the designated officer or employee certifies on the tax rate
calculation forms that the designated officer or employee has
accurately calculated the tax rates and has used values that are the
same as the values shown in the taxing unit's certified appraisal
roll in performing the calculations.
(d-3) As soon as practicable after the designated officer or
employee calculates the no-new-revenue tax rate, [and] the
voter-approval tax rate, and, if applicable, the petition election
tax rate of the taxing unit, the designated officer or employee
shall submit the tax rate calculation forms used in calculating the
rates to the county assessor-collector for each county in which all
or part of the territory of the taxing unit is located.
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. The designated officer or employee shall post
prominently on the home page of the taxing unit's Internet website
in the form prescribed by the comptroller:
(1) the no-new-revenue tax rate, the voter-approval
tax rate, and, if applicable, the petition election tax rate and an
explanation of how each of those rates was [they were] calculated;
(2) the estimated amount of interest and sinking fund
balances and the estimated amount of maintenance and operation or
general fund balances remaining at the end of the current fiscal
year that are not encumbered with or by corresponding existing debt
obligation; and
(3) a schedule of the taxing unit's debt obligations
showing:
(A) the amount of principal and interest that
will be paid to service the taxing unit's debts in the next year
from property tax revenue, including payments of lawfully incurred
contractual obligations providing security for the payment of the
principal of and interest on bonds and other evidences of
indebtedness issued on behalf of the taxing unit by another
political subdivision and, if the taxing unit is created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, payments on debts that the taxing unit anticipates to
incur in the next calendar year;
(B) the amount by which taxes imposed for debt
are to be increased because of the taxing unit's anticipated
collection rate; and
(C) the total of the amounts listed in Paragraphs
(A)-(B), less any amount collected in excess of the previous year's
anticipated collections certified as provided in Subsection (b).
(e-5) The governing body of a taxing unit shall include as
an appendix to the taxing unit's budget for a fiscal year the tax
rate calculation forms used by the designated officer or employee
of the taxing unit to calculate the no-new-revenue tax rate, [and]
the voter-approval tax rate, and, if applicable, the petition
election tax rate of the taxing unit for the tax year in which the
fiscal year begins.
(f) If as a result of consolidation of taxing units a taxing
unit includes territory that was in two or more taxing units in the
preceding year, the amount of taxes imposed in each in the preceding
year is combined for purposes of calculating the no-new-revenue,
[and] voter-approval, and, if applicable, petition election tax
rates under this section.
SECTION 4. Section 26.041, Tax Code, is amended by adding
Subsections (a-1), (b-1), and (c-1) to read as follows:
(a-1) In this subsection, "sales tax gain rate" has the
meaning assigned by Subsection (a). In the first year in which an
additional sales and use tax is required to be collected, the
petition election tax rate of a taxing unit that is a hospital
district or a junior college district is calculated according to
the following formula:
PETITION ELECTION TAX RATE = (NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE x 1.035) + (CURRENT
DEBT RATE - SALES TAX GAIN RATE)
(b-1) In this subsection, "last year's maintenance and
operations expense" and "sales tax revenue rate" have the meanings
assigned by Subsection (b). Except as provided by Subsections
(a-1) and (c-1), in a year in which a taxing unit that is a hospital
district or a junior college district imposes an additional sales
and use tax, the petition election tax rate for the taxing unit is
calculated according to the following formula, regardless of
whether the taxing unit levied a property tax in the preceding year:
PETITION ELECTION TAX RATE = [(LAST YEAR'S MAINTENANCE
AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE
- NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX
REVENUE RATE)
(c-1) In this subsection, "last year's maintenance and
operations expense" has the meaning assigned by Subsection (c). In
a year in which a taxing unit that is a hospital district or a junior
college district and that has been imposing an additional sales and
use tax ceases to impose an additional sales and use tax, the
petition election tax rate for the taxing unit is calculated
according to the following formula:
PETITION ELECTION TAX RATE = [(LAST YEAR'S MAINTENANCE
AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE
- NEW PROPERTY VALUE)] + CURRENT DEBT RATE
SECTION 5. Chapter 26, Tax Code, is amended by adding
Sections 26.064 and 26.076 to read as follows:
Sec. 26.064. ALTERNATE PROVISIONS FOR TAX RATE NOTICE WHEN
ADOPTED RATE EXCEEDS PETITION ELECTION TAX RATE. (a) This section
applies only to a taxing unit:
(1) that is a hospital district or a junior college
district;
(2) that is required to provide notice under Section
26.06(b-2) or 26.061; and
(3) for which the adopted tax rate exceeds the
petition election tax rate.
(b) In the notice required to be provided by the taxing unit
under Section 26.06(b-2) or 26.061, as applicable, the taxing unit
shall:
(1) add the following to the end of the list of rates
included in the notice:
"PETITION ELECTION TAX RATE $__________ per $100";
(2) substitute the following for the definition of
"voter-approval tax rate": "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, unless the
adopted tax rate for (name of taxing unit) exceeds the petition
election tax rate for (name of taxing unit) and the voters of the
taxing unit petition for an election to reduce the tax rate under
Section 26.076, Tax Code.";
(3) add the following definition of "petition election
tax rate": "The petition election tax rate is the highest tax rate
(name of taxing unit) may adopt before the voters of the taxing unit
may petition for an election to reduce the tax rate under Section
26.076, Tax Code."; and
(4) substitute the following for the provision that
provides notice that an election is not required: "The proposed tax
rate is not greater than the voter-approval tax rate. This means
that (name of taxing unit) is not required to hold an election so
that the voters may accept or reject the proposed tax rate.
However, the proposed tax rate exceeds the rate that allows voters
to petition for an election to reduce the tax rate under Section
26.076, Tax Code. If (name of taxing unit) adopts the proposed tax
rate, the qualified voters of the (name of taxing unit) may petition
the (name of taxing unit) to require an election to be held to
determine whether to reduce 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 petition election tax rate of the (name
of taxing unit)."
Sec. 26.076. PETITION ELECTION TO REDUCE TAX RATE OF
HOSPITAL DISTRICT OR JUNIOR COLLEGE DISTRICT. (a) In this section,
"petition election tax rate" means a rate expressed in dollars per
$100 of taxable value calculated according to the following
formula:
PETITION ELECTION TAX RATE = (NO-NEW-REVENUE
MAINTENANCE AND OPERATIONS RATE x 1.035) + CURRENT
DEBT RATE
(b) This section applies only:
(1) to a taxing unit that is a hospital district or a
junior college district; and
(2) in a tax year in which a taxing unit to which this
section applies adopts a tax rate that:
(A) exceeds the taxing unit's petition election
tax rate; and
(B) does not exceed the taxing unit's voter
approval tax rate.
(c) The qualified voters of a taxing unit to which this
section applies by petition may require that an election be held to
determine whether to reduce the tax rate adopted by the governing
body of the taxing unit for the current tax year to the petition
election tax rate.
(d) A petition is valid only if the petition:
(1) states that it is intended to require an election
in the taxing unit on the question of reducing the taxing unit's
adopted tax rate for the current tax year;
(2) is signed by a number of registered voters of the
taxing unit equal to at least three percent of the registered voters
of the taxing unit determined according to the most recent list of
those voters; and
(3) is submitted to the governing body of the taxing
unit not later than the 90th day after the date on which the
governing body adopts the tax rate for the current tax year.
(e) Not later than the 20th day after the date on which a
petition is submitted, the governing body shall determine whether
the petition is valid and must by resolution state the governing
body's determination. If the governing body fails to make the
determination in the time and manner required by this subsection,
the petition is considered to be valid for the purposes of this
section.
(f) If the governing body determines that the petition is
valid or fails to make the determination in the time and manner
required by Subsection (e), the governing body shall order that an
election be held in the taxing unit on the next uniform election
date that allows sufficient time to comply with the requirements of
other law.
(g) At the election, the ballots shall be prepared to permit
voting for or against the proposition: "Reducing the tax rate in
(name of taxing unit) for the current year from (insert tax rate
adopted for current year) to (insert petition election tax rate)."
(h) If a majority of the votes cast in the election favor the
proposition, the tax rate for the current tax year is the petition
election tax rate.
(i) If the proposition is not approved as provided by
Subsection (h), the tax rate for the taxing unit for the current tax
year is the tax rate adopted by the governing body of the taxing
unit for the current tax year.
(j) If the tax rate is reduced by an election held under this
section after tax bills for the taxing unit have been mailed, the
assessor for the taxing unit shall prepare and mail corrected tax
bills. The assessor shall include with the bill a brief explanation
of the reason for and effect of the corrected bill. The date on
which the taxes become delinquent for the tax year is extended by a
number of days equal to the number of days between the date the
first tax bills were sent and the date the corrected tax bills were
sent.
(k) If a property owner pays taxes calculated using the
higher tax rate when the tax rate is reduced by an election held
under this section, the taxing unit shall refund the difference
between the amount of taxes paid and the amount due under the
reduced tax rate if the difference between the amount of taxes paid
and the amount due under the reduced tax rate is $1 or more. If the
difference between the amount of taxes paid and the amount due under
the reduced rate is less than $1, the taxing unit shall refund the
difference on request of the taxpayer. An application for a refund
of less than $1 must be made within 90 days after the date the refund
becomes due or the taxpayer forfeits the right to the refund.
SECTION 6. Sections 26.16(a), (d), and (d-1), Tax Code, are
amended to read as follows:
(a) Each county shall maintain an Internet website. The
county assessor-collector for each county shall post on the
Internet website maintained by the county the following information
for the most recent five tax years for each taxing unit all or part
of the territory of which is located in the county:
(1) the adopted tax rate;
(2) the maintenance and operations rate;
(3) the debt rate;
(4) the no-new-revenue tax rate;
(5) the no-new-revenue maintenance and operations
rate; [and]
(6) the voter-approval tax rate; and
(7) if applicable, the petition election tax rate.
(d) The county assessor-collector shall post immediately
below the table prescribed by Subsection (c) the following
statement:
"The county is providing this table of property tax rate
information as a service to the residents of the county. Each
individual taxing unit is responsible for calculating the property
tax rates listed in this table pertaining to that taxing unit and
providing that information to the county.
"The adopted tax rate is the tax rate adopted by the governing
body of a taxing unit.
"The maintenance and operations rate is the component of the
adopted tax rate of a taxing unit that will impose the amount of
taxes needed to fund maintenance and operation expenditures of the
taxing unit for the following year.
"The debt rate is the component of the adopted tax rate of a
taxing unit that will impose the amount of taxes needed to fund the
taxing unit's debt service for the following year.
"The no-new-revenue tax rate is the tax rate that would
generate the same amount of revenue in the current tax year as was
generated by a taxing unit's adopted tax rate in the preceding tax
year from property that is taxable in both the current tax year and
the preceding tax year.
"The no-new-revenue maintenance and operations rate is the
tax rate that would generate the same amount of revenue for
maintenance and operations in the current tax year as was generated
by a taxing unit's maintenance and operations rate in the preceding
tax year from property that is taxable in both the current tax year
and the preceding tax year.
"The voter-approval tax rate is the highest tax rate a taxing
unit may adopt before requiring voter approval at an election. An
election will automatically be held if a taxing unit wishes to adopt
a tax rate in excess of the taxing unit's voter-approval tax rate.
"The petition election tax rate is the highest tax rate a
taxing unit that is a hospital district or a junior college district
may adopt before the voters of the taxing unit may petition for an
election to reduce the tax rate under Section 26.076, Tax Code."
(d-1) In addition to posting the information described by
Subsection (a), the county assessor-collector shall post on the
Internet website of the county for each taxing unit all or part of
the territory of which is located in the county:
(1) the tax rate calculation forms used by the
designated officer or employee of each taxing unit to calculate the
no-new-revenue and voter-approval tax rates of the taxing unit for
the most recent five tax years beginning with the 2020 tax year and,
if applicable, the forms used to calculate the petition election
tax rates of the taxing unit for the most recent five tax years
beginning with the 2026 tax year, as certified by the designated
officer or employee under Section 26.04(d-2); and
(2) the name and official contact information for each
member of the governing body of the taxing unit.
SECTION 7. Sections 26.17(b) and (e), Tax Code, are amended
to read as follows:
(b) The database must include, with respect to each property
listed on the appraisal roll for the appraisal district:
(1) the property's identification number;
(2) the property's market value;
(3) the property's taxable value;
(4) the name of each taxing unit in which the property
is located;
(5) for each taxing unit other than a school district
in which the property is located:
(A) the no-new-revenue tax rate; [and]
(B) the voter-approval tax rate; and
(C) if applicable, the petition election tax
rate;
(6) for each school district in which the property is
located:
(A) the tax rate that would maintain the same
amount of state and local revenue per student that the district
received in the school year beginning in the preceding tax year; and
(B) the voter-approval tax rate;
(7) the tax rate proposed by the governing body of each
taxing unit in which the property is located;
(8) for each taxing unit other than a school district
in which the property is located, the taxes that would be imposed on
the property if the taxing unit adopted a tax rate equal to:
(A) the no-new-revenue tax rate; and
(B) the proposed tax rate;
(9) for each school district in which the property is
located, the taxes that would be imposed on the property if the
district adopted a tax rate equal to:
(A) the tax rate that would maintain the same
amount of state and local revenue per student that the district
received in the school year beginning in the preceding tax year; and
(B) the proposed tax rate;
(10) for each taxing unit other than a school district
in which the property is located, the difference between the amount
calculated under Subdivision (8)(A) and the amount calculated under
Subdivision (8)(B);
(11) for each school district in which the property is
located, the difference between the amount calculated under
Subdivision (9)(A) and the amount calculated under Subdivision
(9)(B);
(12) the date, time, and location of the public
hearing, if applicable, on the proposed tax rate to be held by the
governing body of each taxing unit in which the property is located;
(13) the date, time, and location of the public
meeting, if applicable, at which the tax rate will be adopted to be
held by the governing body of each taxing unit in which the property
is located; and
(14) for each taxing unit in which the property is
located, an e-mail address at which the taxing unit is capable of
receiving written comments regarding the proposed tax rate of the
taxing unit.
(e) The officer or employee designated by the governing body
of each taxing unit in which the property is located to calculate
the no-new-revenue tax rate, [and] the voter-approval tax rate,
and, if applicable, the petition election tax rate for the taxing
unit must electronically incorporate into the database:
(1) the information described by Subsections (b)(5),
(6), (7), (12), and (13), as applicable, as the information becomes
available; and
(2) the tax rate calculation forms prepared under
Section 26.04(d-1) at the same time the designated officer or
employee submits the tax rates to the governing body of the taxing
unit under Section 26.04(e).
SECTION 8. Section 31.12(b), Tax Code, is amended to read as
follows:
(b) For purposes of this section, liability for a refund
arises:
(1) if the refund is required by Section 11.431(b), on
the date the chief appraiser notifies the collector for the taxing
unit of the approval of the late homestead exemption;
(2) if the refund is required by Section 26.07(g),
[or] 26.075(k), or 26.076(k), on the date the results of the
election to approve or reduce the tax rate, as applicable, are
certified;
(3) if the refund is required by Section 26.15(f):
(A) for a correction to the tax roll made under
Section 26.15(b), on the date the change in the tax roll is
certified to the assessor for the taxing unit under Section 25.25;
or
(B) for a correction to the tax roll made under
Section 26.15(c), on the date the change in the tax roll is ordered
by the governing body of the taxing unit;
(4) if the refund is required by Section 31.11, on the
date the auditor for the taxing unit determines that the payment was
erroneous or excessive or, if the amount of the refund exceeds the
applicable amount specified by Section 31.11(a), on the date the
governing body of the taxing unit approves the refund;
(5) if the refund is required by Section 31.111, on the
date the collector for the taxing unit determines that the payment
was erroneous; or
(6) if the refund is required by Section 31.112, on the
date required by Section 31.112(d) or (e), as applicable.
SECTION 9. Section 33.08(b), Tax Code, is amended to read as
follows:
(b) The governing body of the taxing unit or appraisal
district, in the manner required by law for official action, may
provide that taxes that become delinquent on or after June 1 under
Section 26.075(j), 26.076(j), 26.15(e), 31.03, 31.031, 31.032,
31.033, 31.04, or 42.42 incur an additional penalty to defray costs
of collection. The amount of the penalty may not exceed the amount
of the compensation specified in the applicable contract with an
attorney under Section 6.30 to be paid in connection with the
collection of the delinquent taxes.
SECTION 10. Section 281.107(j), Health and Safety Code, is
amended to read as follows:
(j) The portion of the rate of ad valorem tax that is to be
levied and assessed each year by or for the district that is
allocated by the district to the payment of the principal of and the
interest on bonds and other obligations or the maintenance of
reserves therefor in accordance with this section shall be applied
as a payment on current debt in calculating the current debt rate
under the applicable voter-approval tax rate and petition election
tax rate provisions of Chapter 26, Tax Code.
SECTION 11. Sections 281.124(d) and (e), Health and Safety
Code, are amended to read as follows:
(d) If a majority of the votes cast in the election favor the
proposition, the tax rate for the specified tax year is the rate
approved by the voters, and that rate is not subject to Section
26.07 or 26.076, Tax Code. The board shall adopt the tax rate as
provided by Chapter 26, Tax Code.
(e) If the proposition is not approved as provided by
Subsection (d), the board may not adopt a tax rate for the district
for the specified tax year that exceeds the rate that was not
approved, and:
(1) Section 26.07, Tax Code, applies to the adopted
rate if that rate exceeds the district's voter-approval tax rate;
and
(2) Section 26.076, Tax Code, applies to the adopted
tax rate if that rate exceeds the district's petition election tax
rate.
SECTION 12. This Act applies only to an ad valorem tax year
that begins on or after the effective date of this Act.
SECTION 13. This Act takes effect January 1, 2026.