HB3601 - Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved.

  89R12409 RDS-D     By: Lowe H.B. No. 3601       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of certain ad valorem tax rates of a   taxing unit and the manner in which a proposed ad valorem tax rate   that exceeds the voter-approval tax rate is approved.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 48.202(f), Education Code, is amended to   read as follows:          (f)  For a school year in which the dollar amount guaranteed   level of state and local funds per weighted student per cent of tax   effort ("GL") under Subsection (a-1)(2) exceeds the dollar amount   guaranteed level of state and local funds per weighted student per   cent of tax effort ("GL") under Subsection (a-1)(2) for the   preceding school year, a school district shall reduce the   district's tax rate under Section 45.0032(b)(2) for the tax year   that corresponds to that school year to a rate that results in the   amount of state and local funds per weighted student per cent of tax   effort available to the district at the dollar amount guaranteed   level for the preceding school year. A school district is not   entitled to the amount equal to the increase of revenue described by   this subsection for the school year for which the district must   reduce the district's tax rate. For [ Unless Section 26.042(e), Tax   Code, applies to the district, for ] a tax year in which a district   must reduce the district's tax rate under this subsection, the   district may not increase the district's maintenance and operations   tax rate to a rate that exceeds the maximum maintenance and   operations tax rate permitted under Section 45.003(d) or (f), as   applicable, minus the reduction of tax effort required under this   subsection. This subsection does not apply if the amount of state   funds appropriated for a school year specifically excludes the   amount necessary to provide the dollar amount guaranteed level of   state and local funds per weighted student per cent of tax effort   under Subsection (a-1)(2).          SECTION 2.  Sections 281.124(d) and (f), Health and Safety   Code, are amended to read as follows:          (d)  If at least two-thirds [ 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, Tax Code. The board shall adopt the tax   rate as provided by Chapter 26, Tax Code.          (f)  Notwithstanding any other law, if at least two-thirds [ a   majority ] of the votes cast in the election favor the proposition, a   governing body with approval authority over the district's budget   or tax rate may not disapprove the tax rate approved by the voters   or disapprove the budget based solely on the tax rate approved by   the voters.          SECTION 3.  Section 1101.254(f), Special District Local Laws   Code, is amended to read as follows:          (f)  This section does not affect the applicability of   Section 26.07, Tax Code, to the district's tax rate, except that if   at least two-thirds of the district voters approve a tax rate   increase under this section, Section 26.07, Tax Code, does not   apply to the tax rate for that year.          SECTION 4.  Section 3828.157, Special District Local Laws   Code, is amended to read as follows:          Sec. 3828.157.  INAPPLICABILITY OF CERTAIN TAX CODE   PROVISIONS.  Sections 26.04, [ 26.042, ] 26.05, and 26.07, [ and   26.075, ] Tax Code, do not apply to a tax imposed under Section   3828.153 or 3828.156.          SECTION 5.  Section 8876.152(a), Special District Local Laws   Code, is amended to read as follows:          (a)  Sections 26.04, [ 26.042, ] 26.05, 26.06, 26.061, and   26.07, [ and 26.075, ] Tax Code, do not apply to a tax imposed by the   district.          SECTION 6.  Section 26.04(c), Tax Code, is amended to read as   follows:          (c)  After the assessor for the taxing unit submits the   appraisal roll for the taxing unit to the governing body of the   taxing unit as required by Subsection (b), an officer or employee   designated by the governing body shall calculate the no-new-revenue   tax rate and the voter-approval tax rate for the taxing unit, where:                (1)  "No-new-revenue tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following formula:          NO-NEW-REVENUE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY   LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)          ; and                (2)  "Voter-approval tax rate" means a rate expressed   in dollars per $100 of taxable value calculated according to the   following [ applicable ] formula:                      [ (A) for a special taxing unit: ]          VOTER-APPROVAL TAX RATE = [ ( ]NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE [ x 1.08) ] + CURRENT DEBT RATE          [ ; or                      [ (B) for a taxing unit other than a special taxing   unit:          [ VOTER-APPROVAL TAX RATE = (NO-NEW-REVENUE MAINTENANCE AND   OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE + UNUSED INCREMENT   RATE) ]          SECTION 7.  Sections 26.041(a), (b), and (c), Tax Code, are   amended to read as follows:          (a)  In the first year in which an additional sales and use   tax is required to be collected, the no-new-revenue tax rate and   voter-approval tax rate for the taxing unit are calculated   according to the following formulas:                NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY -   LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW   PROPERTY VALUE)] - SALES TAX GAIN RATE   and                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [ ( ]NO-NEW-REVENUE MAINTENANCE AND OPERATIONS RATE [ x   1.08) ] + [ ( ]CURRENT DEBT RATE - SALES TAX GAIN RATE[ )   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = (NO-NEW-REVENUE MAINTENANCE   AND OPERATIONS RATE x 1.035) + (CURRENT DEBT RATE +   UNUSED INCREMENT RATE - SALES TAX GAIN RATE) ]   where "sales tax gain rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the following   year as calculated under Subsection (d) by the current total value.          (b)  Except as provided by Subsections (a) and (c), in a year   in which a taxing unit imposes an additional sales and use tax, the   voter-approval 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:                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [[ ( ]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE   [ x 1.08) ] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)]   + (CURRENT DEBT RATE - SALES TAX REVENUE RATE)   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED   INCREMENT RATE - SALES TAX REVENUE RATE) ]   where "last year's maintenance and operations expense" means the   amount spent for maintenance and operations from property tax and   additional sales and use tax revenues in the preceding year, and   "sales tax revenue rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the current year   as calculated under Subsection (d) by the current total value.          (c)  In a year in which a taxing unit that has been imposing   an additional sales and use tax ceases to impose an additional sales   and use tax, the no-new-revenue tax rate and voter-approval tax   rate for the taxing unit are calculated according to the following   formulas:                NO-NEW-REVENUE TAX RATE = [(LAST YEAR'S LEVY -   LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW   PROPERTY VALUE)] + SALES TAX LOSS RATE   and                VOTER-APPROVAL TAX RATE [ FOR SPECIAL TAXING UNIT ]   = [[ ( ]LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE   [ x 1.08) ] / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)]   + CURRENT DEBT RATE   [ or                [ VOTER-APPROVAL TAX RATE FOR TAXING UNIT OTHER   THAN SPECIAL TAXING UNIT = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE + UNUSED   INCREMENT RATE) ]   where "sales tax loss rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the amount of sales   and use tax revenue generated in the last four quarters for which   the information is available by the current total value and "last   year's maintenance and operations expense" means the amount spent   for maintenance and operations from property tax and additional   sales and use tax revenues in the preceding year.          SECTION 8.  Sections 26.06(b-1) and (b-3), Tax Code, are   amended to read as follows:          (b-1)  If the proposed tax rate exceeds the no-new-revenue   tax rate and the voter-approval tax rate of the taxing unit, the   notice must contain a statement in the following form:   "NOTICE OF PUBLIC HEARING ON TAX INCREASE          "PROPOSED TAX RATE            $__________ per $100          "NO-NEW-REVENUE TAX RATE      $__________ per $100          "VOTER-APPROVAL TAX RATE      $__________ per $100          "The no-new-revenue tax rate is the tax rate for the (current   tax year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "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.          "The proposed tax rate is greater than the no-new-revenue tax   rate. This means that (name of taxing unit) is proposing to   increase property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "The proposed tax rate is also greater than the   voter-approval tax rate. If (name of taxing unit) adopts the   proposed tax rate, (name of taxing unit) is required to hold an   election so that the voters may accept or reject the proposed tax   rate. Unless at least two-thirds [ If a majority ] of the voters   accept [ reject ] the proposed tax rate, the tax rate of the (name of   taxing unit) will be the voter-approval tax rate. The election will   be held on (date of election). You may contact the (name of office   responsible for administering the election) for information about   voting locations. The hours of voting on election day are (voting   hours).          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(Names of all members of the governing body, showing how   each voted on the proposal to consider the tax increase or, if one   or more were absent, indicating the absences.)          "Visit Texas.gov/PropertyTaxes to find a link to your local   property t [Text truncated for display. Full text available on Congress.gov.]