HBA-JRA, RAR H.B. 982 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 982 By: Williams Ways and Means 4/17/1999 Introduced BACKGROUND AND PURPOSE The 75th Texas Legislature amended the notice and hearing requirements for the governing body of a taxing unit proposing to change its rates and repealed Section 26.052, Tax Code. This change required a taxing unit that had new improvement value added to its taxable base to publish and hold two additional public meetings even if it was adopting the same or lower tax rates. H.B. 982 reinstates Section 26.052 to provide a simplified tax rate notice for small taxing units. 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 Chapter 26, Tax Code, by adding Section 26.052, as follows: Sec. 26.052. SIMPLIFIED TAX RATE NOTICE FOR SMALL TAXING UNITS. (a) Provides that this section applies only to a taxing unit for which the total tax proposed for the current tax year: (1) is five cents or less per $100 of taxable value; (2) would impose taxes of $150,000 or less when applied to the current total value for the taxing unit; and (3) is greater than 103 percent of the effective tax rate calculated as provided by Section 26.04, Tax Code (Submission of Roll to Governing Body; Effective and Rollback Tax Rates). (b) Exempts a taxing unit covered by this section from the publication requirements of Section 26.04(e), Tax Code, and provides that the taxing unit is not subject to an injunction under Section 26.04(g), Tax Code, for failure to comply with those publication requirements. (c) Authorizes a taxing unit covered by this section to provide public notice of its proposed tax rate, no later than seven days before the date on which the tax rate is adopted, by either of the following methods: (1) mailing a notice of the proposed tax rate to each owner of taxable property in the taxing unit; or (2) publishing the notice in the legal notices section of a newspaper having general circulation in the taxing unit. (d) Exempts a taxing unit that provides a public notice under Subsection (c) from Sections 26.05(d) and 26.06, Tax Code (Notice, Hearing, and Vote on Tax Increase), and provides that the taxing unit is not subject to an injunction under Section 26.05(e), Tax Code, for failure to comply with Section 26.05(d), Tax Code. Prohibits a taxing unit that provides notice under Subsection (c) from adopting a tax increase that exceeds the rate set out in the notice unless the taxing unit provides additional public notice under Subsection (c) of the higher rate or complies with Sections 26.05(d) and 26.06, as applicable, in adopting the higher rate. (e) Sets forth the required contents of the notice. SECTION 2. Emergency clause. Effective date: upon passage.