HBA-JRA, RAR H.B. 954 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 954 By: Uher Ways & Means 7/15/1999 Enrolled BACKGROUND AND PURPOSE Prior to the 76th Legislature, a taxing unit was required to hold a public hearing every time a rate change resulted in the imposition of a tax that if applied to the total taxable value would exceed the previous year's levy. This procedure can result in numerous public hearings and be very costly. H.B. 954 amends the Tax Code to provide that a public hearing is only required if the tax rate exceeds the lower of the rollback tax rate or 103 percent of the effective tax rate and provides additional notice requirements for such a hearing. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 26.04(e), Tax Code, to require the designated officer or employee of a tax unit to deliver by mail to each property owner in the unit or publish in a newspaper by August 7 a statement that the adoption of a tax rate equal to the effective tax rate would result in an increase or decrease, as applicable, in the amount of taxes imposed by the unit as compared to last year's levy, and the amount of the increase or decrease. Makes conforming and nonsubstantive changes. SECTION 2. Amends Section 26.05(d), Tax Code, to prohibit a governing body of a tax unit from adopting a tax rate that exceeds the lower of the rollback tax rate or 103 percent of the effective tax rate, rather than a tax rate that if applied to the total taxable value would impose an amount of taxes that exceeds last year's levy, until the governing body has held a public hearing and has complied with Sections 26.06 and 26.065, Tax Code. Requires the governing body of a taxing unit to reduce a tax rate set by law or by vote of the electorate to the lower of the rollback tax rate or 103 percent of the effective tax rate and prohibits it from adopting a higher rate unless it first complies with Section 26.06. SECTION 3. Amends Sections 26.06(a), (b), (d), and (e), Tax Code, to make conforming and nonsubstantive changes. SECTION 4. Amends Section 25.19(b), Tax Code, to make conforming changes. SECTION 5. Amends Chapter 26, Tax Code, by adding Section 26.065, as follows: Sec. 26.065. SUPPLEMENTAL NOTICE OF HEARING ON TAX RATE INCREASE. (a) Requires a taxing unit required to hold a public hearing by Section 26.05(d) to give notice of the hearing in the manner provided by this section in addition to the notice required under Section 26.06. (b) Requires a taxing unit that owns, operates, or controls an Internet website to post notice of the public hearing the website continuously for at least seven days immediately before the public hearing and at least seven days immediately before the date of the vote proposing the increase in the tax rate. (c) Requires a taxing unit that has free access to a television channel to request that the station carry a notice at least five times a day between 7 a.m. and 9 p.m. for at least seven days immediately before the public hearing and at least seven days immediately before the date of the vote proposing the increase in the tax rate. (d) Provides that this notice must contain substantially the same statement and information as required by Section 26.06(b). (e) Provides that the section does not apply to a taxing unit that is unable to comply with this section due to electronic or mechanical failure or other circumstances beyond its control. (f) Provides that a person who owns taxable property is not entitled to an injunction restraining the collection of taxes by a taxing unit in which the property is taxable if the taxing unit has, in good faith, attempted to comply with the requirements of this section. SECTION 6. Effective date: January 1, 2000, except that Section 26.065, Tax Code, as added by this Act, takes effect January 1, 2001. Makes application of this Act prospective. SECTION 7. Emergency clause.