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.