SB749 - Relating to the adoption of an ad valorem tax rate by certain special districts and voter approval of a proposed ad valorem tax rate that exceeds the voter-approval tax rate.

  89R8834 TJB-D     By: Kolkhorst S.B. No. 749       A BILL TO BE ENTITLED   AN ACT   relating to the adoption of an ad valorem tax rate by certain   special districts and voter approval of a proposed ad valorem tax   rate that exceeds the voter-approval tax rate.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2051.202(d), Government Code, is amended   to read as follows:          (d)  A special purpose district shall post or cause to be   posted on an Internet website the following information, if   applicable:                (1)  the name of the special purpose district;                (2)  the name and term of office of each member of the   governing body of the special purpose district;                (3)  the contact information for the main office of the   special purpose district, including the physical address, the   mailing address, and the telephone number;                (4)  the official contact information for each member   of the governing body of the special purpose district;                (5)  if the special purpose district employs a person   as a general manager or executive director, or in another position   to perform duties or functions comparable to those of a general   manager or executive director, the name of the general manager,   executive director, or person that performs those duties;                (6)  if the special purpose district contracts with a   utility operator, the contact information for a person representing   the utility operator, including a mailing address and telephone   number;                (7)  if the special purpose district contracts with a   tax assessor-collector, the contact information for a person   representing the tax assessor-collector, including a mailing   address and telephone number;                (8)  if the special purpose district imposes an ad   valorem tax, the rate of the ad valorem tax of the special purpose   district;                (9)  if the special purpose district imposes a sales   and use tax, the rate of the sales and use tax of the special purpose   district;                (10)  any notice of tax hearing required to be given   under Chapter 26, Tax Code[ , or Section 49.236, Water Code ];                (11)  the location and schedule of meetings of the   governing body of the special purpose district;                (12)  a statement substantially similar to the   following: "Residents of the district have the right to request the   designation of a meeting location within the district under Section   49.062(g), Water Code. A description of this process can be found at   (insert link to the Internet website described by Section   49.062(g), Water Code).";                (13)  each notice of a meeting of the governing body of   the special purpose district under Subchapter C, Chapter 551, for   meetings conducted in the current calendar year and the immediately   preceding calendar year;                (14)  the minutes of a public meeting of the governing   body of the special purpose district under Section 551.021 for   meetings conducted in the current calendar year and the immediately   preceding calendar year; and                (15)  the most recent financial audit of the special   purpose district.          SECTION 2.  Section 26.012(19), Tax Code, is amended to read   as follows:                (19)  "Special taxing unit" means[ :                      [ (A) ]  a taxing unit, other than a school   district, for which the maintenance and operations tax rate   proposed for the current tax year is 2.5 cents or less per $100 of   taxable value[ ;                      [ (B)  a junior college district; or                      [ (C)  a hospital district ].          SECTION 3.  Section 26.013, Tax Code, is amended by adding   Subsection (c) to read as follows:           (c)     This subsection applies only to a junior college   district, a hospital district, or a taxing unit to which former   Section 49.236, Water Code, applied in the 2025 tax year.   Notwithstanding Subsection (b)(2), for each tax year before the   2026 tax year, the foregone revenue amount of a taxing unit to which   this subsection applies is considered to be zero. This subsection   expires December 31, 2028.          SECTION 4.  Section 49.057, Water Code, is amended by   amending Subsection (b) and adding Subsection (j) to read as   follows:          (b)  The board shall adopt an annual budget.  The board of a   developed district[ , as defined by Section 49.23602, ] shall include   as an appendix to the budget the district's:                (1)  audited financial statements;                (2)  bond transcripts; and                (3)  engineer's reports required by Section 49.106.           (j)     In this section, "developed district" means a district   that has financed, completed, and issued bonds to pay for all land,   works, improvements, facilities, plants, equipment, and appliances   necessary to serve at least 95 percent of the projected build-out of   the district in accordance with the purposes for its creation or the   purposes authorized by the constitution, this code, or any other   law.          SECTION 5.  Section 6B(f), Chapter 1472, Acts of the 77th   Legislature, Regular Session, 2001, is amended to read as follows:          (f)  The district may provide that payments required by any   of the district's contracts, agreements, or leases may be payable   from the sale of notes, taxes, or bonds, or any combination of   notes, taxes, or bonds, or may be secured by a lien on or a pledge of   any available funds, including proceeds of the district's   maintenance tax, and may be payable subject to annual appropriation   by the district. The district may pledge to impose and may impose a   maintenance tax in an amount sufficient to comply with the   district's obligations under the district's contracts, leases, and   agreements at a maximum aggregate rate not to exceed 10 cents for   each $100 valuation of taxable property in the district. [ Sections   26.012, 26.04, 26.05, 26.07, and 26.075, Tax Code, do not apply to   maintenance taxes levied and collected for payments under a   contract, agreement, lease, time warrant, or maintenance note   issued or executed under this section. ]          SECTION 6.  The following provisions are repealed:                (1)  Section 3828.157, Special District Local Laws   Code;                (2)  Section 8876.152, Special District Local Laws   Code;                (3)  Section 49.107(g), Water Code;                (4)  Section 49.108(f), Water Code;                (5)  Section 49.236, Water Code;                (6)  Section 49.23601, Water Code;                (7)  Section 49.23602, Water Code; and                (8)  Section 49.23603, Water Code.          SECTION 7.  Section 26.012(19), Tax Code, as amended by this   Act, applies only to an ad valorem tax year that begins on or after   the effective date of this Act.          SECTION 8.  Section 6B(f), Chapter 1472, Acts of the 77th   Legislature, Regular Session, 2001, as amended by this Act, applies   only to an ad valorem tax year that begins on or after the effective   date of this Act.          SECTION 9.  The repeal of Sections 3828.157 and 8876.152,   Special District Local Laws Code, and Sections 49.107(g),   49.108(f), 49.236, 49.23601, 49.23602, and 49.23603, Water Code,   applies only to an ad valorem tax year that begins on or after the   effective date of this Act.          SECTION 10.  This Act takes effect January 1, 2026.