SB2528 - Relating to the calculation of the petition election tax rate for certain taxing units and the ability of the voters to petition for an election to determine whether to reduce the ad valorem tax rate adopted by those taxing units to the petition election tax rate.

  89R11031 CJC-D     By: Bettencourt S.B. No. 2528       A BILL TO BE ENTITLED   AN ACT   relating to the calculation of the petition election tax rate for   certain taxing units and the ability of the voters to petition for   an election to determine whether to reduce the ad valorem tax rate   adopted by those taxing units to the petition election tax rate.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 5.07(f), Tax Code, is amended to read as   follows:          (f)  The comptroller shall prescribe tax rate calculation   forms to be used by the designated officer or employee of each   taxing unit to calculate and submit the no-new-revenue tax rate ,   [ and ] the voter-approval tax rate , and, if applicable, the petition   election tax rate for the taxing unit as required by Chapter 26.          SECTION 2.  The heading to Section 26.04, Tax Code, is   amended to read as follows:          Sec. 26.04.  SUBMISSION OF ROLL TO GOVERNING BODY;   NO-NEW-REVENUE , [ AND ] VOTER-APPROVAL , AND PETITION ELECTION TAX   RATES.          SECTION 3.  Section 26.04, Tax Code, is amended by adding   Subsection (c-1) and amending Subsections (c-2), (d-1), (d-2),   (d-3), (e), (e-5), and (f) to read as follows:           (c-1)     This subsection applies only to a taxing unit that is   a hospital district or a junior college district. In addition to   the tax rates an officer or employee designated by the governing   body of a taxing unit to which this section applies is required to   calculate under Subsection (c), the officer or employee shall   calculate the petition election tax rate for the taxing unit   according to the formula prescribed by Section 26.076.          (c-2)  Notwithstanding any other provision of this section,   if the assessor for a taxing unit receives a certified estimate of   the taxable value of property in the taxing unit under Section   26.01(a-1), the officer or employee designated by the governing   body of the taxing unit shall calculate the no-new-revenue tax   rate , the [ and ] voter-approval tax rate , and, if applicable, the   petition election tax rate using the certified estimate of taxable   value.          (d-1)  The designated officer or employee shall use the tax   rate calculation forms prescribed by the comptroller under Section   5.07 in calculating the no-new-revenue tax rate , [ and ] the   voter-approval tax rate , and, if applicable, the petition election   tax rate .          (d-2)  The designated officer or employee may not submit the   no-new-revenue tax rate , [ and ] the voter-approval tax rate , and, if   applicable, the petition election tax rate to the governing body of   the taxing unit and the taxing unit may not adopt a tax rate until   the designated officer or employee certifies on the tax rate   calculation forms that the designated officer or employee has   accurately calculated the tax rates and has used values that are the   same as the values shown in the taxing unit's certified appraisal   roll in performing the calculations.          (d-3)  As soon as practicable after the designated officer or   employee calculates the no-new-revenue tax rate , [ and ] the   voter-approval tax rate , and, if applicable, the petition election   tax rate of the taxing unit, the designated officer or employee   shall submit the tax rate calculation forms used in calculating the   rates to the county assessor-collector for each county in which all   or part of the territory of the taxing unit is located.          (e)  By 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, if applicable, the petition election tax rate and an   explanation of how each of those rates was [ 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-5)  The governing body of a taxing unit shall include as   an appendix to the taxing unit's budget for a fiscal year the tax   rate calculation forms used by the designated officer or employee   of the taxing unit to calculate the no-new-revenue tax rate , [ and ]   the voter-approval tax rate , and, if applicable, the petition   election tax rate of the taxing unit for the tax year in which the   fiscal year begins.          (f)  If as a result of consolidation of taxing units a taxing   unit includes territory that was in two or more taxing units in the   preceding year, the amount of taxes imposed in each in the preceding   year is combined for purposes of calculating the no-new-revenue ,   [ and ] voter-approval , and, if applicable, petition election tax   rates under this section.          SECTION 4.  Section 26.041, Tax Code, is amended by adding   Subsections (a-1), (b-1), and (c-1) to read as follows:           (a-1)     In this subsection, "sales tax gain rate" has the   meaning assigned by Subsection (a). In the first year in which an   additional sales and use tax is required to be collected, the   petition election tax rate of a taxing unit that is a hospital   district or a junior college district is calculated according to   the following formula:           PETITION ELECTION TAX RATE = (NO-NEW-REVENUE   MAINTENANCE AND OPERATIONS RATE x 1.035) + (CURRENT   DEBT RATE - SALES TAX GAIN RATE)           (b-1)     In this subsection, "last year's maintenance and   operations expense" and "sales tax revenue rate" have the meanings   assigned by Subsection (b). Except as provided by Subsections   (a-1) and (c-1), in a year in which a taxing unit that is a hospital   district or a junior college district imposes an additional sales   and use tax, the petition election 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:           PETITION ELECTION TAX RATE = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE - SALES TAX   REVENUE RATE)           (c-1)     In this subsection, "last year's maintenance and   operations expense" has the meaning assigned by Subsection (c). In   a year in which a taxing unit that is a hospital district or a junior   college district and that has been imposing an additional sales and   use tax ceases to impose an additional sales and use tax, the   petition election tax rate for the taxing unit is calculated   according to the following formula:           PETITION ELECTION TAX RATE = [(LAST YEAR'S MAINTENANCE   AND OPERATIONS EXPENSE x 1.035) / (CURRENT TOTAL VALUE   - NEW PROPERTY VALUE)] + CURRENT DEBT RATE          SECTION 5.  Chapter 26, Tax Code, is amended by adding   Sections 26.064 and 26.076 to read as follows:           Sec.   26.064.     ALTERNATE PROVISIONS FOR TAX RATE NOTICE WHEN   ADOPTED RATE EXCEEDS PETITION ELECTION TAX RATE.   (a)   This section   applies only to a taxing unit:                 (1)     that is a hospital district or a junior college   district;                 (2)     that is required to provide notice under Section   26.06(b-2) or 26.061; and                 (3)     for which the adopted tax rate exceeds the   petition election tax rate.           (b)     In the notice required to be provided by the taxing unit   under Section 26.06(b-2) or 26.061, as applicable, the taxing unit   shall:                 (1)     add the following to the end of the list of rates   included in the notice:           "PETITION ELECTION TAX RATE          $__________ per $100";                 (2)     substitute the following for the definition of   "voter-approval tax rate": "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, unless the   adopted tax rate for (name of taxing unit) exceeds the petition   election tax rate for (name of taxing unit) and the voters of the   taxing unit petition for an election to reduce the tax rate under   Section 26.076, Tax Code.";                 (3)     add the following definition of "petition election   tax rate": "The petition election tax rate is the highest tax rate   (name of taxing unit) may adopt before the voters of the taxing unit   may petition for an election to reduce the tax rate under Section   26.076, Tax Code."; and                 (4)     substitute the following for the provision that   provides notice that an election is not required: "The proposed tax   rate is not greater than the voter-approval tax rate. This means   that (name of taxing unit) is not required to hold an election so   that the voters may accept or reject the proposed tax rate.     However, the proposed tax rate exceeds the rate that allows voters   to petition for an election to reduce the tax rate under Section   26.076, Tax Code.   If (name of taxing unit) adopts the proposed tax   rate, the qualified voters of the (name of taxing unit) may petition   the (name of taxing unit) to require an election to be held to   determine whether to reduce 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 petition election tax rate of the (name   of taxing unit)."           Sec.   26.076.     PETITION ELECTION TO REDUCE TAX RATE OF   HOSPITAL DISTRICT OR JUNIOR COLLEGE DISTRICT.   (a)   In this section,   "petition election tax rate" means a rate expressed in dollars per   $100 of taxable value calculated according to the following   formula:           PETITION ELECTION TAX RATE = (NO-NEW-REVENUE   MAINTENANCE AND OPERATIONS RATE x 1.035) + CURRENT   DEBT RATE           (b)  This section applies only:                 (1)     to a taxing unit that is a hospital district or a   junior college district; and                 (2)     in a tax year in which a taxing unit to whi [Text truncated for display. 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