Texas 2025 - 89th Regular

Texas Senate Bill SB2665 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R14370 CJC-D
2	2	By: Hinojosa of Hidalgo S.B. No. 2665
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of a taxing unit to adopt an exemption or
10	10	a tax rate that is contingent on voter approval of the adoption of a
11	11	tax rate or the issuance of bonds by that taxing unit or another
12	12	taxing unit.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
15	15	adding Section 11.136 to read as follows:
16	16	Sec. 11.136. CONDITIONAL ADOPTION OR INCREASE IN PERCENTAGE
17	17	OF LOCAL OPTION RESIDENCE HOMESTEAD EXEMPTION. (a) The governing
18	18	body of a taxing unit may condition the adoption of an exemption
19	19	under Section 11.13(n), or an increase in the percentage of an
20	20	exemption previously adopted by the governing body under that
21	21	subsection, on the outcome of an election ordered by the governing
22	22	body or the governing body of another taxing unit to approve:
23	23	(1) a tax rate under Section 26.07 or 26.08; or
24	24	(2) the issuance of bonds for which an election is
25	25	required to be held under:
26	26	(A) Section 45.003, Education Code; or
27	27	(B) Chapter 1251, Government Code.
28	28	(b) If the governing body of a taxing unit proposes to
29	29	conditionally adopt or increase the percentage of an exemption
30	30	under Section 11.13(n) under this section, the governing body must
31	31	include in the ordinance, resolution, or order adopting or
32	32	increasing the percentage of the exemption:
33	33	(1) a description of the specific condition that must
34	34	occur before the adoption or increase in the percentage of the
35	35	exemption may take effect; and
36	36	(2) a statement that the adoption or increase in the
37	37	percentage of the exemption:
38	38	(A) does not take effect unless the condition
39	39	described by Subdivision (1) occurs; and
40	40	(B) takes effect on January 1 of the first tax
41	41	year following the year in which the condition described by
42	42	Subdivision (1) occurs if that condition occurs.
43	43	SECTION 2. Chapter 26, Tax Code, is amended by adding
44	44	Section 26.0502 to read as follows:
45	45	Sec. 26.0502. CONDITIONAL TAX RATE. (a) At the time the
46	46	governing body of a taxing unit adopts a tax rate for the taxing
47	47	unit for the current tax year under Section 26.05(a), the governing
48	48	body may also adopt a conditional tax rate for the current tax year
49	49	that is lower than the tax rate adopted under that subsection,
50	50	conditioned on the outcome of an election ordered by the governing
51	51	body or the governing body of another taxing unit to approve:
52	52	(1) a tax rate under Section 26.07 or 26.08; or
53	53	(2) the issuance of bonds for which an election is
54	54	required to be held under:
55	55	(A) Section 45.003, Education Code; or
56	56	(B) Chapter 1251, Government Code.
57	57	(b) If the governing body of a taxing unit adopts a
58	58	conditional tax rate under Subsection (a) for a tax year, the
59	59	governing body shall:
60	60	(1) include the conditional tax rate and a description
61	61	of the specific condition that must occur for the conditional tax
62	62	rate to be the tax rate for the taxing unit in the ordinance,
63	63	resolution, or order adopted under Section 26.05;
64	64	(2) comply with the requirements of Section 26.05 as
65	65	to the conditional tax rate; and
66	66	(3) include in any tax rate notice the taxing unit is
67	67	required to provide under this chapter or Chapter 44, Education
68	68	Code:
69	69	(A) the conditional tax rate;
70	70	(B) a description of the specific condition that
71	71	must occur for the conditional tax rate to be the tax rate for the
72	72	taxing unit; and
73	73	(C) a statement that the conditional tax rate is
74	74	the tax rate for the taxing unit only if the specific condition
75	75	described by Paragraph (B) occurs.
76	76	(c) If the conditional tax rate becomes the tax rate for a
77	77	taxing unit for a tax year as the result of a specific condition
78	78	that occurs after the assessor for the taxing unit has mailed the
79	79	taxing unit's tax bills for that tax year, the assessor shall
80	80	prepare and mail corrected tax bills in the manner provided by
81	81	Chapter 31, and include with the corrected bill a brief explanation
82	82	of the reason for and effect of the corrected bill. A property
83	83	owner that paid the tax due as provided in the initial tax bill is
84	84	entitled to a refund in an amount equal to the difference between
85	85	the tax paid and the tax due as provided in the corrected bill. A
86	86	property owner is not required to apply for a refund under this
87	87	subsection to receive the refund. Section 31.11 does not apply to a
88	88	refund under this subsection.
89	89	SECTION 3. Sections 31.12(a) and (b), Tax Code, are amended
90	90	to read as follows:
91	91	(a) If a refund of a tax provided by Section 11.431(b),
92	92	26.07(g), 26.075(k), 26.0502(c), 26.15(f), 31.11, 31.111, or
93	93	31.112 is paid on or before the 60th day after the date the
94	94	liability for the refund arises, no interest is due on the amount
95	95	refunded. If not paid on or before that 60th day, the amount of the
96	96	tax to be refunded accrues interest at a rate of one percent for
97	97	each month or part of a month that the refund is unpaid, beginning
98	98	with the date on which the liability for the refund arises.
99	99	(b) For purposes of this section, liability for a refund
100	100	arises:
101	101	(1) if the refund is required by Section 11.431(b), on
102	102	the date the chief appraiser notifies the collector for the taxing
103	103	unit of the approval of the late homestead exemption;
104	104	(2) if the refund is required by Section 26.07(g) or
105	105	26.075(k), on the date the results of the election to approve or
106	106	reduce the tax rate, as applicable, are certified;
107	107	(2-a) if the refund is required by Section 26.0502(c),
108	108	on the date the conditional tax rate becomes the adopted tax rate
109	109	for the taxing unit;
110	110	(3) if the refund is required by Section 26.15(f):
111	111	(A) for a correction to the tax roll made under
112	112	Section 26.15(b), on the date the change in the tax roll is
113	113	certified to the assessor for the taxing unit under Section 25.25;
114	114	or
115	115	(B) for a correction to the tax roll made under
116	116	Section 26.15(c), on the date the change in the tax roll is ordered
117	117	by the governing body of the taxing unit;
118	118	(4) if the refund is required by Section 31.11, on the
119	119	date the auditor for the taxing unit determines that the payment was
120	120	erroneous or excessive or, if the amount of the refund exceeds the
121	121	applicable amount specified by Section 31.11(a), on the date the
122	122	governing body of the taxing unit approves the refund;
123	123	(5) if the refund is required by Section 31.111, on the
124	124	date the collector for the taxing unit determines that the payment
125	125	was erroneous; or
126	126	(6) if the refund is required by Section 31.112, on the
127	127	date required by Section 31.112(d) or (e), as applicable.
128	128	SECTION 4. This Act applies to an ad valorem tax year that
129	129	begins on or after the effective date of this Act.
130	130	SECTION 5. This Act takes effect January 1, 2026.