HBA-JRA S.B. 693 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 693 By: Cain Ways & Means 5/4/1999 Engrossed BACKGROUND AND PURPOSE Currently, a taxing entity is required to hold a public hearing before the adoption of a tax rate which exceeds the preceding year's rate. However, while the Texas Constitution allows taxing entities to exclude new or annexed property from the calculation of the preceding year's levy, the Tax Code prohibits the consideration of new or annexed property. S.B. 693 requires a taxing entity to notify each property owner in the taxing unit that the adoption of the effective tax rate would change the total property taxes levied in the taxing unit in comparison with the previous year's levy. 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 to notify each property owner in the taxing unit that the adoption of the effective tax rate would change the total property taxes levied in the taxing unit in comparison with the previous year's levy. Makes conforming changes. SECTION 2. Amends Section 26.05(d), Tax Code, to prohibit a governing body from adopting a tax rate which exceeds the effective tax rate calculated as provided by Section 26.04, rather than one which exceeds last year's levy, until the governing body, rather than it, has completed certain actions. SECTION 3. Amends Sections 26.06(a), (b), (d), and (e), Tax Code, to make conforming changes. SECTION 4. Amends Section 25.19(b), Tax Code, to require the chief appraiser to include a statement that the governing body is prohibited from adopting a tax revenue rate increase for operating purposes from properties taxed in, rather than above tax revenues for, the preceding year without previous public notification. SECTION 5. (a) Effective date: September 1, 1999. (b) Provides that this Act applies only to an ad valorem tax rate beginning on or after January 1, 2000, except as provided by Subsection (c). (c) Provides that this Act applies to an ad valorem tax rate adopted by a taxing unit for the 1999 tax year, unless the taxing unit has given notice under Section 26.06(a), Tax Code, as that subsection existed when the notice was given, of the taxing unit's proposed tax rate as required by Section 26.05(d), as that subsection existed when the notice was given; or has adopted its ad valorem tax rate for the 1999 tax year under Section 26.05(a), Tax Code. SECTION 6. Emergency clause.