Bill Text: TX SB1434 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to public notice of the availability on the Internet of property-tax-related information.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-04-12 - Left pending in committee [SB1434 Detail]

Download: Texas-2021-SB1434-Introduced.html

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87R7062 TJB-F
By: Bettencourt S.B. No. 1434

A BILL TO BE ENTITLED
AN ACT
relating to public notice of the availability on the Internet of
property-tax-related information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 44.004(c), Education Code, is amended to
read as follows:
(c) The notice of public meeting to discuss and adopt the
budget and the proposed tax rate may not be smaller than one-quarter
page of a standard-size or a tabloid-size newspaper, and the
headline on the notice must be in 18-point or larger type. Subject
to Subsection (d), the notice must:
(1) contain a statement in the following form:
"NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE
"The (name of school district) will hold a public meeting at
(time, date, year) in (name of room, building, physical location,
city, state). The purpose of this meeting is to discuss the school
district's budget that will determine the tax rate that will be
adopted. Public participation in the discussion is invited." The
statement of the purpose of the meeting must be in bold type. In
reduced type, the notice must state: "The tax rate that is
ultimately adopted at this meeting or at a separate meeting at a
later date may not exceed the proposed rate shown below unless the
district publishes a revised notice containing the same information
and comparisons set out below and holds another public meeting to
discuss the revised notice." In addition, in reduced type, the
notice must state: "Visit PropertyTaxes.Texas.gov to find a link to
your local property tax database on which you can easily access
information regarding your property taxes, including information
about proposed tax rates and scheduled public hearings of each
entity that taxes your property.";
(2) contain a section entitled "Comparison of Proposed
Budget with Last Year's Budget," which must show the difference,
expressed as a percent increase or decrease, as applicable, in the
amounts budgeted for the preceding fiscal year and the amount
budgeted for the fiscal year that begins in the current tax year for
each of the following:
(A) maintenance and operations;
(B) debt service; and
(C) total expenditures;
(3) contain a section entitled "Total Appraised Value
and Total Taxable Value," which must show the total appraised value
and the total taxable value of all property and the total appraised
value and the total taxable value of new property taxable by the
district in the preceding tax year and the current tax year as
calculated under Section 26.04, Tax Code;
(4) contain a statement of the total amount of the
outstanding and unpaid bonded indebtedness of the school district;
(5) contain a section entitled "Comparison of Proposed
Rates with Last Year's Rates," which must:
(A) show in rows the tax rates described by
Subparagraphs (i)-(iii), expressed as amounts per $100 valuation of
property, for columns entitled "Maintenance & Operations,"
"Interest & Sinking Fund," and "Total," which is the sum of
"Maintenance & Operations" and "Interest & Sinking Fund":
(i) the school district's "Last Year's
Rate";
(ii) the "Rate to Maintain Same Level of
Maintenance & Operations Revenue & Pay Debt Service," which:
(a) in the case of "Maintenance &
Operations," is the tax rate that, when applied to the current
taxable value for the district, as certified by the chief appraiser
under Section 26.01, Tax Code, and as adjusted to reflect changes
made by the chief appraiser as of the time the notice is prepared,
would impose taxes in an amount that, when added to state funds to
be distributed to the district under Chapter 48, would provide the
same amount of maintenance and operations taxes and state funds
distributed under Chapter 48 per student in average daily
attendance for the applicable school year that was available to the
district in the preceding school year; and
(b) in the case of "Interest & Sinking
Fund," is the tax rate that, when applied to the current taxable
value for the district, as certified by the chief appraiser under
Section 26.01, Tax Code, and as adjusted to reflect changes made by
the chief appraiser as of the time the notice is prepared, and when
multiplied by the district's anticipated collection rate, would
impose taxes in an amount that, when added to state funds to be
distributed to the district under Chapter 46 and any excess taxes
collected to service the district's debt during the preceding tax
year but not used for that purpose during that year, would provide
the amount required to service the district's debt; and
(iii) the "Proposed Rate";
(B) contain fourth and fifth columns aligned with
the columns required by Paragraph (A) that show, for each row
required by Paragraph (A):
(i) the "Local Revenue per Student," which
is computed by multiplying the district's total taxable value of
property, as certified by the chief appraiser for the applicable
school year under Section 26.01, Tax Code, and as adjusted to
reflect changes made by the chief appraiser as of the time the
notice is prepared, by the total tax rate, and dividing the product
by the number of students in average daily attendance in the
district for the applicable school year; and
(ii) the "State Revenue per Student," which
is computed by determining the amount of state aid received or to be
received by the district under Chapters 43, 46, and 48 and dividing
that amount by the number of students in average daily attendance in
the district for the applicable school year; and
(C) contain an asterisk after each calculation
for "Interest & Sinking Fund" and a footnote to the section that, in
reduced type, states "The Interest & Sinking Fund tax revenue is
used to pay for bonded indebtedness on construction, equipment, or
both. The bonds, and the tax rate necessary to pay those bonds, were
approved by the voters of this district.";
(6) contain a section entitled "Comparison of Proposed
Levy with Last Year's Levy on Average Residence," which must:
(A) show in rows the information described by
Subparagraphs (i)-(iv), rounded to the nearest dollar, for columns
entitled "Last Year" and "This Year":
(i) "Average Market Value of Residences,"
determined using the same group of residences for each year;
(ii) "Average Taxable Value of Residences,"
determined after taking into account the limitation on the
appraised value of residences under Section 23.23, Tax Code, and
after subtracting all homestead exemptions applicable in each year,
other than exemptions available only to disabled persons or persons
65 years of age or older or their surviving spouses, and using the
same group of residences for each year;
(iii) "Last Year's Rate Versus Proposed
Rate per $100 Value"; and
(iv) "Taxes Due on Average Residence,"
determined using the same group of residences for each year; and
(B) contain the following information: "Increase
(Decrease) in Taxes" expressed in dollars and cents, which is
computed by subtracting the "Taxes Due on Average Residence" for
the preceding tax year from the "Taxes Due on Average Residence" for
the current tax year;
(7) contain the following statement in bold print:
"Under state law, the dollar amount of school taxes imposed on the
residence of a person 65 years of age or older or of the surviving
spouse of such a person, if the surviving spouse was 55 years of age
or older when the person died, may not be increased above the amount
paid in the first year after the person turned 65, regardless of
changes in tax rate or property value.";
(8) contain the following statement in bold print:
"Notice of Voter-Approval Rate: The highest tax rate the district
can adopt before requiring voter approval at an election is (the
school district voter-approval rate determined under Section
26.08, Tax Code). This election will be automatically held if the
district adopts a rate in excess of the voter-approval rate of (the
school district voter-approval rate)."; and
(9) contain a section entitled "Fund Balances," which
must include 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 debt
obligation, less estimated funds necessary for the operation of the
district before the receipt of the first payment under Chapter 48 in
the succeeding school year.
SECTION 2. Section 25.19, Tax Code, is amended by adding
Subsection (m) to read as follows:
(m) A notice required by Subsection (a) or (g) must include
the following statement: "Beginning August 7th, visit
PropertyTaxes.Texas.gov to find a link to your local property tax
database on which you can easily access information regarding your
property taxes, including information regarding the amount of taxes
that each entity that taxes your property will impose if the entity
adopts its proposed tax rate. Your local property tax database will
be updated regularly during August and September as local elected
officials propose and adopt the property tax rates that will
determine how much you pay in property taxes."
SECTION 3. Section 26.04(e-2), Tax Code, is amended to read
as follows:
(e-2) By August 7 or as soon thereafter as practicable, the
chief appraiser of each appraisal district shall deliver by regular
mail or e-mail to each owner of property located in the appraisal
district a notice that the estimated amount of taxes to be imposed
on the owner's property by each taxing unit in which the property is
located may be found in the property tax database maintained by the
appraisal district under Section 26.17. The notice must include:
(1) the following [a] statement: "Visit
PropertyTaxes.Texas.gov to find a link to your local property tax
database on which you can easily access information regarding your
property taxes, including information regarding the amount of taxes
that each entity that taxes your property will impose if the entity
adopts its proposed tax rate. Your local property tax database will
be updated regularly during August and September as local elected
officials propose and adopt the property tax rates that will
determine how much you pay in property taxes." [directing the
property owner to an Internet website from which the owner may
access information related to the actions taken or proposed to be
taken by each taxing unit in which the property is located that may
affect the taxes imposed on the owner's property];
(2) a statement that the property owner may request
from the county assessor-collector for the county in which the
property is located or, if the county assessor-collector does not
assess taxes for the county, the person who assesses taxes for the
county under Section 6.24(b), contact information for the assessor
for each taxing unit in which the property is located, who must
provide the information described by this subsection to the owner
on request; and
(3) the name, address, and telephone number of the
county assessor-collector for the county in which the property is
located or, if the county assessor-collector does not assess taxes
for the county, the person who assesses taxes for the county under
Section 6.24(b).
SECTION 4. Section 26.052, Tax Code, is amended by adding
Subsection (e-1) to read as follows:
(e-1) Public notice provided under Subsection (c) must
include the following statement: "Visit PropertyTaxes.Texas.gov to
find a link to your local property tax database on which you can
easily access information regarding your property taxes, including
information about proposed tax rates and scheduled public hearings
of each entity that taxes your property."
SECTION 5. Sections 26.06(b-1), (b-2), 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. If a majority of the voters 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 PropertyTaxes.Texas.gov to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
(b-2) If the proposed tax rate exceeds the no-new-revenue
tax rate but does not exceed 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 not greater than the voter-approval
tax rate. As a result, (name of taxing unit) is not required to
hold an election at which voters may accept or reject the proposed
tax rate. However, you may express your support for or opposition
to the proposed tax rate by contacting the members of the (name of
governing body) of (name of taxing unit) at their offices or by
attending the public hearing mentioned above.
"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 PropertyTaxes.Texas.gov to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
(b-3) If the proposed tax rate does not exceed the
no-new-revenue tax rate but exceeds 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 RATE
"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 not greater than the no-new-revenue
tax rate. This means that (name of taxing unit) is not 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 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. If a majority of the
voters 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 rate or, if one or
more were absent, indicating the absences.)
"Visit PropertyTaxes.Texas.gov to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
SECTION 6. Section 26.061(b), Tax Code, is amended to read
as follows:
(b) The notice of the meeting at which the governing body of
the taxing unit will vote on the proposed tax rate must contain a
statement in the following form:
"NOTICE OF MEETING TO VOTE ON TAX RATE
"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 not greater than the no-new-revenue
tax rate. This means that (name of taxing unit) is not proposing to
increase property taxes for the (current tax year) tax year.
"A public meeting to vote on the proposed tax rate will be
held on (date and time) at (meeting place).
"The proposed tax rate is also not greater than the
voter-approval tax rate. As a result, (name of taxing unit) is not
required to hold an election to seek voter approval of the
rate. However, you may express your support for or opposition to
the proposed tax rate by contacting the members of the (name of
governing body) of (name of taxing unit) at their offices or by
attending the public meeting mentioned above.
"Your taxes owed under any of the above rates 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 proposed tax rate or, if one or more were absent,
indicating the absences.)
"Visit PropertyTaxes.Texas.gov to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"The 86th Texas Legislature modified the manner in which the
voter-approval tax rate is calculated to limit the rate of growth of
property taxes in the state."
SECTION 7. Chapter 26, Tax Code, is amended by adding
Section 26.175 to read as follows:
Sec. 26.175. PROPERTY TAX DATABASE LOCATOR WEBSITE. (a) In
this section, "property tax database" means a property tax database
required to be created and maintained by a chief appraiser under
Section 26.17.
(b) The comptroller shall develop and maintain an easily
accessible Internet website that lists each property tax database
and includes a method to assist a property owner to identify the
appropriate property tax database for the owner's property.
(c) The Internet website must provide a separate link to the
Internet location of each property tax database.
(d) The address of the Internet website must be
"PropertyTaxes.Texas.gov."
SECTION 8. Section 49.236(a), Water Code, is amended to
read as follows:
(a) Before the board adopts an ad valorem tax rate for the
district for debt service, operation and maintenance purposes, or
contract purposes, the board shall give notice of each meeting of
the board at which the adoption of a tax rate will be considered.
The notice must:
(1) contain a statement in substantially the following
form:
"NOTICE OF PUBLIC HEARING ON TAX RATE
"The (name of the district) will hold a public hearing on a
proposed tax rate for the tax year (year of tax levy) on (date and
time) at (meeting place). Your individual taxes may increase at a
greater or lesser rate, or even decrease, depending on the tax rate
that is adopted and on the change in the taxable value of your
property in relation to the change in taxable value of all other
property. The change in the taxable value of your property in
relation to the change in the taxable value of all other property
determines the distribution of the tax burden among all property
owners.
"Visit PropertyTaxes.Texas.gov to find a link to your local
property tax database on which you can easily access information
regarding your property taxes, including information about
proposed tax rates and scheduled public hearings of each entity
that taxes your property.
"(Names of all board members and, if a vote was taken, an
indication of how each voted on the proposed tax rate and an
indication of any absences.)";
(2) contain the following information:
(A) the district's total adopted tax rate for the
preceding year and the proposed tax rate, expressed as an amount per
$100;
(B) the difference, expressed as an amount per
$100 and as a percent increase or decrease, as applicable, in the
proposed tax rate compared to the adopted tax rate for the preceding
year;
(C) the average appraised value of a residence
homestead in the district in the preceding year and in the current
year; the district's total homestead exemption, other than an
exemption available only to disabled persons or persons 65 years of
age or older, applicable to that appraised value in each of those
years; and the average taxable value of a residence homestead in the
district in each of those years, disregarding any homestead
exemption available only to disabled persons or persons 65 years of
age or older;
(D) the amount of tax that would have been
imposed by the district in the preceding year on a residence
homestead appraised at the average appraised value of a residence
homestead in that year, disregarding any homestead exemption
available only to disabled persons or persons 65 years of age or
older;
(E) the amount of tax that would be imposed by the
district in the current year on a residence homestead appraised at
the average appraised value of a residence homestead in that year,
disregarding any homestead exemption available only to disabled
persons or persons 65 years of age or older, if the proposed tax
rate is adopted;
(F) the difference between the amounts of tax
calculated under Paragraphs (D) and (E), expressed in dollars and
cents and described as the annual percentage increase or decrease,
as applicable, in the tax to be imposed by the district on the
average residence homestead in the district in the current year if
the proposed tax rate is adopted; and
(G) if the proposed combined debt service,
operation and maintenance, and contract tax rate requires or
authorizes an election to approve or reduce the tax rate, as
applicable, a description of the purpose of the proposed tax
increase;
(3) contain a statement in substantially the following
form, as applicable:
(A) if the district is a district described by
Section 49.23601:
"NOTICE OF VOTE ON TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
eight percent, an election must be held to determine whether to
approve the operation and maintenance tax rate under Section
49.23601, Water Code.";
(B) if the district is a district described by
Section 49.23602:
"NOTICE OF VOTE ON TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
3.5 percent, an election must be held to determine whether to
approve the operation and maintenance tax rate under Section
49.23602, Water Code."; or
(C) if the district is a district described by
Section 49.23603:
"NOTICE OF TAXPAYERS' RIGHT TO ELECTION TO REDUCE TAX RATE
"If the district adopts a combined debt service, operation
and maintenance, and contract tax rate that would result in the
taxes on the average residence homestead increasing by more than
eight percent, the qualified voters of the district by petition may
require that an election be held to determine whether to reduce the
operation and maintenance tax rate to the voter-approval tax rate
under Section 49.23603, Water Code."; and
(4) include the following statement: "The 86th Texas
Legislature modified the manner in which the voter-approval tax
rate is calculated to limit the rate of growth of property taxes in
the state.".
SECTION 9. Not later than January 1, 2022, the comptroller
of public accounts shall develop the Internet website required by
Section 26.175, Tax Code, as added by this Act.
SECTION 10. The changes in law made by this Act apply only
to a notice required to be delivered for an ad valorem tax year that
begins on or after January 1, 2022.
SECTION 11. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2021.