HB416 - Relating to the deadlines for performing various functions in connection with the ad valorem tax system.

  89R3427 LHC-D     By: Tepper H.B. No. 416       A BILL TO BE ENTITLED   AN ACT   relating to the deadlines for performing various functions in   connection with the ad valorem tax system.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 26.01(a) and (a-1), Tax Code, are   amended to read as follows:          (a)  By August [ July ] 25, the chief appraiser shall prepare   and certify to the assessor for each taxing unit participating in   the district that part of the appraisal roll for the district that   lists the property taxable by the taxing unit.  The part certified   to the assessor is the appraisal roll for the taxing unit.  The   chief appraiser shall consult with the assessor for each taxing   unit and notify each taxing unit in writing by April 1 of the form in   which the roll will be provided to each taxing unit.          (a-1)  If by August [ July ] 20 the appraisal review board for   an appraisal district has not approved the appraisal records for   the district as required under Section 41.12, the chief appraiser   shall not later than August [ July ] 25 prepare and certify to the   assessor for each taxing unit participating in the district an   estimate of the taxable value of property in that taxing unit.          SECTION 2.  Sections 26.04(b), (e), and (e-6), Tax Code, are   amended to read as follows:          (b)  The assessor shall submit the appraisal roll for the   taxing unit showing the total appraised, assessed, and taxable   values of all property and the total taxable value of new property   to the governing body of the taxing unit by September [ August ] 1 or   as soon thereafter as practicable.  By September [ August ] 1 or as   soon thereafter as practicable, the taxing unit's collector shall   certify the anticipated collection rate as calculated under   Subsections (h), (h-1), and (h-2) for the current year to the   governing body.  If the collector certified an anticipated   collection rate in the preceding year and the actual collection   rate in that year exceeded the anticipated rate, the collector   shall also certify the amount of debt taxes collected in excess of   the anticipated amount in the preceding year.          (e)  By September [ 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 an explanation of how 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-6)  By September [ August ] 7 or as soon thereafter as   practicable, the chief appraiser of each appraisal district shall   publish in a newspaper of general circulation in the county for   which the appraisal district is established the notice required by   Subsection (e-2).  If there is no newspaper of general circulation   in the county for which the appraisal district is established, the   notice shall be posted at the appraisal office for the district.          SECTION 3.  Section 26.05(a), Tax Code, is amended to read as   follows:          (a)  The governing body of each taxing unit shall adopt a tax   rate for the current tax year and shall notify the assessor for the   taxing unit of the rate adopted.  The governing body must adopt a   tax rate before the later of September 30 or the 30th [ 60th ] day   after the date the certified appraisal roll is received by the   taxing unit, except that the governing body must adopt a tax rate   that exceeds the voter-approval tax rate not later than the 71st day   before the next uniform election date prescribed by Section 41.001,   Election Code, that occurs in November of that year.  The tax rate   consists of two components, each of which must be approved   separately.  The components are:                (1)  for a taxing unit other than a school district, the   rate that, if applied to the total taxable value, will impose the   total amount described by Section 26.04(e)(3)(C), less any amount   of additional sales and use tax revenue that will be used to pay   debt service, or, for a school district, the rate calculated under   Section 44.004(c)(5)(A)(ii)(b), Education Code; and                (2)  the rate that, if applied to the total taxable   value, will impose the amount of taxes needed to fund maintenance   and operation expenditures of the taxing unit for the next year.          SECTION 4.  Section 26.16(d-2), Tax Code, is amended to read   as follows:          (d-2)  By September [ August ] 7 or as soon thereafter as   practicable, the county assessor-collector shall post on the   website the tax rate calculation forms described by Subsection   (d-1)(1) for the current tax year.          SECTION 5.  Section 31.01(h), Tax Code, is amended to read as   follows:          (h)  An assessor who assesses taxes for more than one taxing   unit may prepare and deliver separate bills for the taxes of a   taxing unit that does not adopt a tax rate for the year before the   30th [ 60th ] day after the date the chief appraiser certifies the   appraisal roll for the taxing unit under Section 26.01 [ of this   code ] or, if the taxing unit participates in more than one appraisal   district, before the 30th [ 60th ] day after the date it receives a   certified appraisal roll from any of the appraisal districts in   which it participates.  If separate tax bills are prepared and   delivered under this subsection, the taxing unit or taxing units   that failed to adopt the tax rate before the prescribed deadline   must pay the additional costs incurred in preparing and mailing the   separate bills in addition to any other compensation required or   agreed to be paid for the appraisal services rendered.          SECTION 6.  Sections 41.12(a) and (c), Tax Code, are amended   to read as follows:          (a)  By August [ July ] 20, the appraisal review board shall:                (1)  hear and determine all or substantially all timely   filed protests;                (2)  determine all timely filed challenges;                (3)  submit a list of its approved changes in the   records to the chief appraiser; and                (4)  approve the records.          (c)  The board of directors of an appraisal district   established for a county with a population of at least one million   by resolution may:                (1)  postpone the deadline established by Subsection   (a) for the performance of the functions listed in that subsection   to a date not later than September 15 [ August 30 ]; or                (2)  provide that the appraisal review board may   approve the appraisal records if the sum of the appraised values, as   determined by the chief appraiser, of all properties on which a   protest has been filed but not determined does not exceed 10 percent   of the total appraised value of all other taxable properties.          SECTION 7.  Section 41.44(a), Tax Code, is amended to read as   follows:          (a)  Except as provided by Subsections (b), (c), (c-1), and   (c-2), to be entitled to a hearing and determination of a protest,   the property owner initiating the protest must file a written   notice of the protest with the appraisal review board having   authority to hear the matter protested:                (1)  not later than May 15 or the 60th [ 30th ] day after   the date that notice to the property owner was delivered to the   property owner as provided by Section 25.19, whichever is later;                (2)  in the case of a protest of a change in the   appraisal records ordered as provided by Subchapter A of this   chapter or by Chapter 25, not later than the 30th day after the date   notice of the change is delivered to the property owner;                (3)  in the case of a determination that a change in the   use of land appraised under Subchapter C, D, E, or H, Chapter 23,   has occurred, not later than the 30th day after the date the notice   of the determination is delivered to the property owner;                (4)  in the case of a determination of eligibility for a   refund under Section 23.1243, not later than the 30th day after the   date the notice of the determination is delivered to the property   owner; or                (5)  in the case of a protest of the modification or   denial of an application for an exemption under Section 11.35, or   the determination of an appropriate damage assessment rating for an   item of qualified property under that section, not later than the   30th day after the date the property owner receives the notice   required under Section 11.45(e).          SECTION 8.  Section 41.45(a), Tax Code, is amended to read as   follows:          (a)  On the filing of a notice as required by Section 41.44,   the appraisal review board shall schedule a hearing on the protest.     The appraisal review board shall schedule the hearing to be held as   soon as practicable but not later than the 60th [ 90th ] day after the   date the board approves the appraisal records as provided by   Section 41.12.  If more than one protest is filed relating to the   same property, the appraisal review board shall schedule a single   hearing on all timely filed protests relating to the property.  A   hearing for a property that is owned in undivided or fractional   interests, including separate interests in a mineral in place,   shall be scheduled to provide for participation by all owners who   have timely filed a protest.          SECTION 9.  This Act applies only to ad valorem taxes imposed   for a tax year beginning on or after the effective date of this Act.          SECTION 10.  This Act takes effect January 1, 2026.