CHAPTER 26. ASSESSMENT
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE D. APPRAISAL AND ASSESSMENT
CHAPTER 26. ASSESSMENT
Sec. 26.01. SUBMISSION OF ROLLS TO TAXING UNITS. (a) By July
25, the chief appraiser shall prepare and certify to the assessor
for each taxing unit participating in the district that part of
the appraisal roll for the district that lists the property
taxable by the unit. The part certified to the assessor is the
appraisal roll for the unit. The chief appraiser shall consult
with the assessor for each taxing unit and notify each unit in
writing by April 1 of the form in which the roll will be provided
to each unit.
(b) When a chief appraiser submits an appraisal roll for county
taxes to a county assessor-collector, the chief appraiser also
shall certify the appraisal district appraisal roll to the
comptroller. However, the comptroller by rule may provide for
submission of only a summary of the appraisal roll. The chief
appraiser shall certify the district appraisal roll or the
summary of that roll in the form and manner prescribed by the
comptroller's rule.
(c) The chief appraiser shall prepare and certify to the
assessor for each taxing unit a listing of those properties which
are taxable by that unit but which are under protest and
therefore not included on the appraisal roll approved by the
appraisal review board and certified by the chief appraiser. This
listing shall include the appraised market value, productivity
value (if applicable), and taxable value as determined by the
appraisal district and shall also include the market value,
taxable value, and productivity value (if applicable) as claimed
by the property owner filing the protest if available. If the
property owner does not claim a value and the appraised value of
the property in the current year is equal to or less than its
value in the preceding year, the listing shall include a
reasonable estimate of the market value, taxable value, and
productivity value (if applicable) that would be assigned to the
property if the taxpayer's claim is upheld. If the property owner
does not claim a value and the appraised value of the property is
higher than its appraised value in the preceding year, the
listing shall include the appraised market value, productivity
value (if applicable) and taxable value of the property in the
preceding year, except that if there is a reasonable likelihood
that the appraisal review board will approve a lower appraised
value for the property than its appraised value in the preceding
year, the chief appraiser shall make a reasonable estimate of the
taxable value that would be assigned to the property if the
property owner's claim is upheld. The taxing unit shall use the
lower value for calculations as prescribed in Sections 26.04 and
26.041 of this code.
(d) The chief appraiser shall prepare and certify to the
assessor for each taxing unit a list of those properties of which
the chief appraiser has knowledge that are reasonably likely to
be taxable by that unit but that are not included on the
appraisal roll certified to the assessor under Subsection (a) or
included on the listing certified to the assessor under
Subsection (c). The chief appraiser shall include on the list for
each property the market value, appraised value, and kind and
amount of any partial exemptions as determined by the appraisal
district for the preceding year and a reasonable estimate of the
market value, appraised value, and kind and amount of any partial
exemptions for the current year. Until the property is added to
the appraisal roll, the assessor for the taxing unit shall
include each property on the list in the calculations prescribed
by Sections 26.04 and 26.041, and for that purpose shall use the
lower market value, appraised value, or taxable value, as
appropriate, included on or computed using the information
included on the list for the property.
(e) Except as provided by Subsection (f), not later than April
30, the chief appraiser shall prepare and certify to the assessor
for each county, municipality, and school district participating
in the appraisal district an estimate of the taxable value of
property in that taxing unit. The chief appraiser shall assist
each county, municipality, and school district in determining
values of property in that taxing unit for the taxing unit's
budgetary purposes.
(f) Subsection (e) does not apply to a county or municipality
that notifies the chief appraiser that the county or municipality
elects not to receive the estimate or assistance described by
that subsection.
Acts 1979, 66th Leg., p. 2276, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 162, ch. 13,
Sec. 114, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4615, ch.
786, Sec. 1, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p. 4826,
ch. 851, Sec. 17, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p.
4946, ch. 884, Sec. 3, eff. Jan. 1, 1984; Acts 1985, 69th Leg.,
ch. 312, Sec. 6, eff. June 7, 1985; Acts 1987, 70th Leg., ch.
947, Sec. 1, eff. Jan. 1, 1988; Acts 1991, 72nd Leg., 2nd C.S.,
ch. 6, Sec. 44, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch.
1040, Sec. 67, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 643,
Sec. 2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 898, Sec.
2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1087, Sec. 1,
eff. Jan. 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
55, Sec. 1, eff. January 1, 2008.
Acts 2009, 81st Leg., R.S., Ch.
1328, Sec. 85, eff. September 1, 2009.
Sec. 26.012. DEFINITIONS. In this chapter:
(1) "Additional sales and use tax" means an additional sales and
use tax imposed by:
(A) a city under Section 321.101(b);
(B) a county under Chapter 323; or
(C) a hospital district, other than a hospital district created
on or after September 1, 2001, that:
(i) imposes the sales and use tax under Subchapter I, Chapter
286, Health and Safety Code; or
(ii) imposes the sales and use tax under Subchapter L, Chapter
285, Health and Safety Code.
(2) "Collection rate" means the amount, expressed as a
percentage, calculated by:
(A) adding together estimates of the following amounts:
(i) the total amount of taxes to be levied in the current year
and collected before July 1 of the next year, including any
penalties and interest on those taxes that will be collected
during that period;
(ii) any additional taxes imposed under Chapter 23 collected
between July 1 of the current year and June 30 of the following
year; and
(iii) the total amount of delinquent taxes levied in any
preceding year that will be collected between July 1 of the
current year and June 30 of the following year, including any
penalties and interest on those taxes that will be collected
during that period; and
(B) dividing the amount calculated under Paragraph (A) by the
total amount of taxes that will be levied in the current year.
(3) "Current debt" means debt service for the current year.
(4) "Current debt rate" means a rate expressed in dollars per
$100 of taxable value and calculated according to the following
formula:
CURRENT DEBT RATE = (CURRENT DEBT SERVICE - EXCESS COLLECTIONS) +
(CURRENT TOTAL VALUE X COLLECTION RATE)
CURRENT JUNIOR COLLEGE LEVY
CURRENT TOTAL VALUE
(5) "Current junior college levy" means the amount of taxes the
governing body proposes to dedicate in the current year to a
junior college district under Section 45.105(e), Education Code.
(6) "Current total value" means the total taxable value of
property listed on the appraisal roll for the current year,
including all appraisal roll supplements and corrections as of
the date of the calculation, less the taxable value of property
exempted for the current tax year for the first time under
Section 11.31, except that:
(A) the current total value for a school district excludes:
(i) the total value of homesteads that qualify for a tax
limitation as provided by Section 11.26; and
(ii) new property value of property that is subject to an
agreement entered into under Chapter 313; and
(B) the current total value for a county, municipality, or
junior college district excludes the total value of homesteads
that qualify for a tax limitation provided by Section 11.261.
(7) "Debt" means a bond, warrant, certificate of obligation, or
other evidence of indebtedness owed by a taxing unit that is
payable solely from property taxes in installments over a period
of more than one year, not budgeted for payment from maintenance
and operations funds, and secured by a pledge of property taxes,
or a payment made under contract to secure indebtedness of a
similar nature issued by another political subdivision on behalf
of the taxing unit.
(8) "Debt service" means the total amount expended or to be
expended by a taxing unit from property tax revenues to pay
principal of and interest on debts or other payments required by
contract to secure the debts and, if the unit is created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, payments on debts that the unit anticipates
incurring in the next calendar year.
(9) "Effective maintenance and operations rate" means a rate
expressed in dollars per $100 of taxable value and calculated
according to the following formula:
EFFECTIVE MAINTENANCE AND OPERATIONS RATE =
LAST YEAR'S - LAST YEAR'S - LAST YEAR'S JUNIOR
LEVY DEBT LEVY COLLEGE LEVY
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
(10) "Excess collections" means the amount, if any, by which
debt taxes collected in the preceding year exceeded the amount
anticipated in the preceding year's calculation of the rollback
rate, as certified by the collector under Section 26.04(b) of
this code.
(11) "Last year's debt levy" means the total of:
(A) the amount of taxes that would be generated by multiplying
the total taxable value of property on the appraisal roll for the
preceding year, including all appraisal roll supplements and
corrections, other than corrections made pursuant to Section
25.25(d) of this code, as of the date of calculation, by the debt
rate adopted by the governing body in the preceding year under
Section 26.05(a)(1) of this code; and
(B) the amount of debt taxes refunded by the taxing unit in the
preceding year for tax years before that year.
(12) "Last year's junior college levy" means the amount of taxes
dedicated by the governing body in the preceding year for use of
a junior college district under Section 45.105(e), Education
Code.
(13) "Last year's levy" means the total of:
(A) the amount of taxes that would be generated by multiplying
the total tax rate adopted by the governing body in the preceding
year by the total taxable value of property on the appraisal roll
for the preceding year, including:
(i) taxable value that was reduced in an appeal under Chapter
42; and
(ii) all appraisal roll supplements and corrections other than
corrections made pursuant to Section 25.25(d), as of the date of
the calculation, except that last year's taxable value for a
school district excludes the total value of homesteads that
qualified for a tax limitation as provided by Section 11.26 and
last year's taxable value for a county, municipality, or junior
college district excludes the total value of homesteads that
qualified for a tax limitation as provided by Section 11.261; and
(B) the amount of taxes refunded by the taxing unit in the
preceding year for tax years before that year.
(14) "Last year's total value" means the total taxable value of
property listed on the appraisal roll for the preceding year,
including all appraisal roll supplements and corrections, other
than corrections made pursuant to Section 25.25(d), as of the
date of the calculation, except that:
(A) last year's taxable value for a school district excludes the
total value of homesteads that qualified for a tax limitation as
provided by Section 11.26; and
(B) last year's taxable value for a county, municipality, or
junior college district excludes the total value of homesteads
that qualified for a tax limitation as provided by Section
11.261.
(15) "Lost property levy" means the amount of taxes levied in
the preceding year on property value that was taxable in the
preceding year but is not taxable in the current year because the
property is exempt in the current year under a provision of this
code other than Section 11.251 or 11.253, the property has
qualified for special appraisal under Chapter 23 in the current
year, or the property is located in territory that has ceased to
be a part of the unit since the preceding year.
(16) "Maintenance and operations" means any lawful purpose other
than debt service for which a taxing unit may spend property tax
revenues.
(17) "New property value" means:
(A) the total taxable value of property added to the appraisal
roll in the current year by annexation and improvements listed on
the appraisal roll that were made after January 1 of the
preceding tax year, including personal property located in new
improvements that was brought into the unit after January 1 of
the preceding tax year;
(B) property value that is included in the current total value
for the tax year succeeding a tax year in which any portion of
the value of the property was excluded from the total value
because of the application of a tax abatement agreement to all or
a portion of the property, less the value of the property that
was included in the total value for the preceding tax year; and
(C) for purposes of an entity created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, property
value that is included in the current total value for the tax
year succeeding a tax year in which the following occurs:
(i) the subdivision of land by plat;
(ii) the installation of water, sewer, or drainage lines; or
(iii) the paving of undeveloped land.
Added by Acts 1987, 70th Leg., ch. 947, Sec. 2, eff. Jan. 1,
1988. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(d)(1),
14.28(1), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 66, Sec.
4, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 534, Sec. 3;
Acts 1993, 73rd Leg., ch. 285, Sec. 3, eff. Aug. 30, 1993; Acts
1993, 73rd Leg., ch. 696, Sec. 1, eff. Jan. 1, 1994; Acts 1993,
73rd Leg., ch. 696, Sec. 1, eff. Jan. 1, 1994; Acts 1995, 74th
Leg., ch. 506, Sec. 1 to 3, eff. Aug. 28, 1995; Acts 1997, 75th
Leg., ch. 165, Sec. 6.77, 29.01, 29.02, eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1070, Sec. 53, eff. Sept. 1, 1997; Acts
2001, 77th Leg., ch. 1290, Sec. 15, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1505, Sec. 3, eff. Jan. 1, 2002; Acts 2003,
78th Leg., ch. 396, Sec. 3, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
830, Sec. 2, eff. January 1, 2008.
Sec. 26.02. ASSESSMENT RATIOS PROHIBITED. The assessment of
property for taxation on the basis of a percentage of its
appraised value is prohibited. All property shall be assessed on
the basis of 100 percent of its appraised value.
Acts 1979, 66th Leg., p. 2277, ch. 841, Sec. 1, eff. Jan. 1,
1981. Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, Sec. 18,
eff. Aug. 29, 1983.
Sec. 26.03. TREATMENT OF CAPTURED APPRAISED VALUE AND TAX
INCREMENT. (a) In this section, "captured appraised value,"
"reinvestment zone," "tax increment," and "tax increment fund"
have the meanings assigned by Chapter 311.
(b) This section does not apply to a school district.
(c) The portion of the captured appraised value of real property
taxable by a taxing unit that corresponds to the portion of the
tax increment of the unit from that property that the unit has
agreed to pay into the tax increment fund for a reinvestment zone
and that is not included in the calculation of "new property
value" as defined by Section 26.012 is excluded from the value of
property taxable by the unit in any tax rate calculation under
this chapter.
(d) The portion of the tax increment of a taxing unit that the
unit has agreed to pay into the tax increment fund for a
reinvestment zone is excluded from the amount of taxes imposed or
collected by the unit in any tax rate calculation under this
chapter, except that the portion of the tax increment is not
excluded if in the same tax rate calculation there is no portion
of captured appraised value excluded from the value of property
taxable by the unit under Subsection (c) for the same
reinvestment zone.
Added by Acts 2001, 77th Leg., ch. 503, Sec. 1, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 150, Sec. 1, eff. Jan.
1, 2004; Acts 2003, 78th Leg., ch. 426, Sec. 1, eff. Jan. 1,
2004.
Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; EFFECTIVE AND
ROLLBACK TAX RATES. (a) On receipt of the appraisal roll, the
assessor for a taxing unit shall determine the total appraised
value, the total assessed value, and the total taxable value of
property taxable by the unit. He shall also determine, using
information provided by the appraisal office, the appraised,
assessed, and taxable value of new property.
(b) The assessor shall submit the appraisal roll for the unit
showing the total appraised, assessed, and taxable values of all
property and the total taxable value of new property to the
governing body of the unit by August 1 or as soon thereafter as
practicable. By August 1 or as soon thereafter as practicable,
the taxing unit's collector shall certify an estimate of the
collection rate for the current year to the governing body. If
the collector certified an anticipated collection rate in the
preceding year and the actual collection rate in that year
exceeded the anticipated rate, the collector shall also certify
the amount of debt taxes collected in excess of the anticipated
amount in the preceding year.
(c) An officer or employee designated by the governing body
shall calculate the effective tax rate and the rollback tax rate
for the unit, where:
(1) "Effective tax rate" means a rate expressed in dollars per
$100 of taxable value calculated according to the following
formula:
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY)
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY)
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
; and
(2) "Rollback tax rate" means a rate expressed in dollars per
$100 of taxable value calculated according to the following
formula:
ROLLBACK TAX RATE =
ROLLBACK TAX RATE =
x 1.08) + CURRENT DEBT RATE
(d) The effective tax rate for a county is the sum of the
effective tax rates calculated for each type of tax the county
levies and the rollback tax rate for a county is the sum of the
rollback tax rates calculated for each type of tax the county
levies.
(e) By August 7 or as soon thereafter as practicable, the
designated officer or employee shall submit the rates to the
governing body. He shall deliver by mail to each property owner
in the unit or publish in a newspaper in the form prescribed by
the comptroller:
(1) the effective tax rate, the rollback tax rate, and an
explanation of how 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;
(3) a schedule of the unit's debt obligations showing:
(A) the amount of principal and interest that will be paid to
service the 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 unit by another political subdivision
and, if the unit is created under Section 52, Article III, or
Section 59, Article XVI, Texas Constitution, payments on debts
that the 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 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);
(4) the amount of additional sales and use tax revenue
anticipated in calculations under Section 26.041;
(5) 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;
(6) in the year that a taxing unit calculates an adjustment
under Subsection (i) or (j), a schedule that includes the
following elements:
(A) the name of the unit discontinuing the department, function,
or activity;
(B) the amount of property tax revenue spent by the unit listed
under Paragraph (A) to operate the discontinued department,
function, or activity in the 12 months preceding the month in
which the calculations required by this chapter are made; and
(C) the name of the unit that operates a distinct department,
function, or activity in all or a majority of the territory of a
taxing unit that has discontinued operating the distinct
department, function, or activity; and
(7) in the year following the year in which a taxing unit raised
its rollback rate as required by Subsection (j), a schedule that
includes the following elements:
(A) the amount of property tax revenue spent by the unit to
operate the department, function, or activity for which the
taxing unit raised the rollback rate as required by Subsection
(j) for the 12 months preceding the month in which the
calculations required by this chapter are made; and
(B) the amount published by the unit in the preceding tax year
under Subdivision (6)(B).
(e-1) The notice requirements imposed by Subsections (e)(1)-(6)
do not apply to a school district.
(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
effective and rollback tax rates under this section.
(g) A person who owns taxable property is entitled to an
injunction prohibiting the taxing unit in which the property is
taxable from adopting a tax rate if the assessor or designated
officer or employee of the unit, as applicable, has not complied
with the computation or publication requirements of this section
and the failure to comply was not in good faith.
(h) For purposes of this section, the anticipated collection
rate of a taxing unit is the percentage relationship that the
total amount of estimated tax collections for the current year
bears to the total amount of taxes imposed for the current year.
The total amount of estimated tax collections for the current
year is the sum of the collector's estimate of:
(1) the total amount of property taxes imposed in the current
year that will be collected before July 1 of the following year,
including any penalties and interest on those taxes that will be
collected during that period; and
(2) the total amount of delinquent property taxes imposed in
previous years that will be collected on or after July 1 of the
current year and before July 1 of the following year, including
any penalties and interest on those taxes that will be collected
during that period.
(i) This subsection applies to a taxing unit that has agreed by
written contract to transfer a distinct department, function, or
activity to another taxing unit and discontinues operating that
distinct department, function, or activity if the operation of
that department, function, or activity in all or a majority of
the territory of the taxing unit is continued by another existing
taxing unit or by a new taxing unit. The rollback tax rate of a
taxing unit to which this subsection applies in the first tax
year in which a budget is adopted that does not allocate revenue
to the discontinued department, function, or activity is
calculated as otherwise provided by this section, except that
last year's levy used to calculate the effective maintenance and
operations rate of the unit is reduced by the amount of
maintenance and operations tax revenue spent by the taxing unit
to operate the department, function, or activity for the 12
months preceding the month in which the calculations required by
this chapter are made and in which the unit operated the
discontinued department, function, or activity. If the unit did
not operate that department, function, or activity for the full
12 months preceding the month in which the calculations required
by this chapter are made, the unit shall reduce last year's levy
used for calculating the effective maintenance and operations
rate of the unit by the amount of the revenue spent in the last
full fiscal year in which the unit operated the discontinued
department, function, or activity.
(j) This subsection applies to a taxing unit that had agreed by
written contract to accept the transfer of a distinct department,
function, or activity from another taxing unit and operates a
distinct department, function, or activity if the operation of a
substantially similar department, function, or activity in all or
a majority of the territory of the taxing unit has been
discontinued by another taxing unit, including a dissolved taxing
unit. The rollback tax rate of a taxing unit to which this
subsection applies in the first tax year after the other taxing
unit discontinued the substantially similar department, function,
or activity in which a budget is adopted that allocates revenue
to the department, function, or activity is calculated as
otherwise provided by this section, except that last year's levy
used to calculate the effective maintenance and operations rate
of the unit is increased by the amount of maintenance and
operations tax revenue spent by the taxing unit that discontinued
operating the substantially similar department, function, or
activity to operate that department, function, or activity for
the 12 months preceding the month in which the calculations
required by this chapter are made and in which the unit operated
the discontinued department, function, or activity. If the unit
did not operate the discontinued department, function, or
activity for the full 12 months preceding the month in which the
calculations required by this chapter are made, the unit may
increase last year's levy used to calculate the effective
maintenance and operations rate by an amount not to exceed the
amount of property tax revenue spent by the discontinuing unit to
operate the discontinued department, function, or activity in the
last full fiscal year in which the discontinuing unit operated
the department, function, or activity.
(k) to (q) Expired.
Acts 1979, 66th Leg., p. 2277, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 163, ch. 13,
Sec. 116, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 2165, ch.
400, Sec. 1, eff. June 17, 1983; Acts 1983, 68th Leg., p. 5376,
ch. 987, Sec. 3, eff. June 19, 1983; Acts 1983, 68th Leg., p.
5402, ch. 1001, Sec. 1, eff. Jan. 1, 1984; Acts 1985, 69th Leg.,
ch. 657, Sec. 1, 2, eff. June 14, 1985; Acts 1985, 69th Leg., 1st
C.S., ch. 1, Sec. 2, eff. Sept. 1, 1985; Acts 1986, 69th Leg.,
3rd C.S., ch. 10, art. 1, Sec. 36, eff. Jan. 1, 1987; Acts 1987,
70th Leg., ch. 699, Sec. 1, eff. June 19, 1987; Acts 1987, 70th
Leg., ch. 849, Sec. 2, eff. Aug. 31, 1987; Acts 1987, 70th Leg.,
ch. 947, Sec. 3, eff. Jan. 1, 1988; Acts 1987, 70th Leg., ch.
988, Sec. 1, eff. June 18, 1987; Acts 1991, 72nd Leg., ch. 14,
Sec. 284 (18), eff. Sept. 1, 1991; Acts 1991, 72nd Leg., 2nd
C.S., ch. 6, Sec. 45, eff. Sept. 1, 1991; Acts 1993, 73rd Leg.,
ch. 81, Sec. 2, eff. May 4, 1993; Acts 1993, 73rd Leg., ch. 611,
Sec. 1, 2, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 165,
Sec. 29.01, 29.03, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch.
1070, Sec. 54, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 398,
Sec. 2, eff. Aug. 30, 1999; Acts 1999, 76th Leg., ch. 1358, Sec.
1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch. 1561, Sec. 1,
eff. Aug. 30, 1999.
Sec. 26.041. TAX RATE OF UNIT IMPOSING ADDITIONAL SALES AND USE
TAX. (a) In the first year in which an additional sales and use
tax is required to be collected, the effective tax rate and
rollback tax rate for the unit are calculated according to the
following formulas:
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY
EFFECTIVE TAX RATE = (LAST YEAR'S LEVY - LOST PROPERTY LEVY
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
SALES TAX GAIN RATE
and
ROLLBACK RATE =
ROLLBACK RATE =
1.08) + CURRENT DEBT RATE - SALES TAX GAIN
RATE
where "sales tax gain rate" means a number expressed in dollars
per $100 of taxable value, calculated by dividing the revenue
that will be generated by the additional sales and use tax in the
following year as calculated under Subsection (d) of this section
by the current total value.
(b) Except as provided by Subsections (a) and (c) of this
section, in a year in which a taxing unit imposes an additional
sales and use tax the rollback tax rate for the unit is
calculated according to the following formula, regardless of
whether the unit levied a property tax in the preceding year:
ROLLBACK RATE =
(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) +
(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)
(CURRENT DEBT RATE - SALES TAX REVENUE RATE)
where "last year's maintenance and operations expense" means the
amount spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year, and
"sales tax revenue rate" means a number expressed in dollars per
$100 of taxable value, calculated by dividing the revenue that
will be generated by the additional sales and use tax in the
current year as calculated under Subsection (d) of this section
by the current total value.
(c) In a year in which a taxing unit that has been imposing an
additional sales and use tax ceases to impose an additional sales
and use tax the effective tax rate and rollback tax rate for the
unit are calculated according to the following formulas:
EFFECTIVE TAX RATE =
(LAST YEAR'S LEVY - LOST PROPERTY LEVY) +
(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)
SALES TAX LOSS RATE
and
ROLLBACK TAX RATE =
(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) +
(TOTAL CURRENT VALUE - NEW PROPERTY VALUE)
CURRENT DEBT RATE
where "sales tax loss rate" means a number expressed in dollars
per $100 of taxable value, calculated by dividing the amount of
sales and use tax revenue generated in the last four quarters for
which the information is available by the current total value and
"last year's maintenance and operations expense" means the amount
spent for maintenance and operations from property tax and
additional sales and use tax revenues in the preceding year.
(d) In order to determine the amount of additional sales and use
tax revenue for purposes of this section, the designated officer
or employee shall use the sales and use tax revenue for the last
preceding four quarters for which the information is available as
the basis for projecting the additional sales and use tax revenue
for the current tax year. If the rate of the additional sales and
use tax is increased or reduced, the projection to be used for
the first tax year after the effective date of the sales and use
tax change shall be adjusted to exclude any revenue gained or
lost because of the sales and use tax rate change. If the unit
did not impose an additional sales and use tax for the last
preceding four quarters, the designated officer or employee shall
request the comptroller of public accounts to provide to the
officer or employee a report showing the estimated amount of
taxable sales and uses within the unit for the previous four
quarters as compiled by the comptroller, and the comptroller
shall comply with the request. The officer or employee shall
prepare the estimate of the additional sales and use tax revenue
for the first year of the imposition of the tax by multiplying
the amount reported by the comptroller by the appropriate
additional sales and use tax rate and by multiplying that product
by .95.
(e) If a city that imposes an additional sales and use tax
receives payments under the terms of a contract executed before
January 1, 1986, in which the city agrees not to annex certain
property or a certain area and the owners or lessees of the
property or of property in the area agree to pay at least
annually to the city an amount determined by reference to all or
a percentage of the property tax rate of the city and all or a
part of the value of the property subject to the agreement or
included in the area subject to the agreement, the governing
body, by order adopted by a majority vote of the governing body,
may direct the designated officer or employee to add to the
effective and rollback tax rates the amount that, when applied to
the total taxable value submitted to the governing body, would
produce an amount of taxes equal to the difference between the
total amount of payments for the tax year under contracts
described by this subsection under the rollback tax rate
calculated under this section and the total amount of payments
for the tax year that would have been obligated to the city if
the city had not adopted an additional sales and use tax.
(f) An estimate made by the comptroller under Subsection (d) of
this section need not be adjusted to take into account any
projection of additional revenue attributable to increases in the
total value of items taxable under the state sales and use tax
because of amendments of Chapter 151, Tax Code.
(g) If the rate of the additional sales and use tax is
increased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) of this
section, of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the increase and the second projection must not take into
account the increase. The officer or employee shall then subtract
the amount of the result of the second projection from the amount
of the result of the first projection to determine the revenue
generated as a result of the increase in the additional sales and
use tax. In the first year in which an additional sales and use
tax is increased, the effective tax rate for the unit is the
effective tax rate before the increase minus a number the
numerator of which is the revenue generated as a result of the
increase in the additional sales and use tax, as determined under
this subsection, and the denominator of which is the current
total value minus the new property value.
(h) If the rate of the additional sales and use tax is
decreased, the designated officer or employee shall make two
projections, in the manner provided by Subsection (d) of this
section, of the revenue generated by the additional sales and use
tax in the following year. The first projection must take into
account the decrease and the second projection must not take into
account the decrease. The officer or employee shall then subtract
the amount of the result of the first projection from the amount
of the result of the second projection to determine the revenue
lost as a result of the decrease in the additional sales and use
tax. In the first year in which an additional sales and use tax
is decreased, the effective tax rate for the unit is the
effective tax rate before the decrease plus a number the
numerator of which is the revenue lost as a result of the
decrease in the additional sales and use tax, as determined under
this subsection, and the denominator of which is the current
total value minus the new property value.
(i) Any amount derived from the sales and use tax that is or
will be distributed by a county to the recipient of an economic
development grant made under Chapter 381, Local Government Code,
is not considered to be sales and use tax revenue for purposes of
this section.
(j) Any amount derived from the sales and use tax that is
retained by the comptroller under Section 4 or 5, Chapter 1507,
Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is not considered to be
sales and use tax revenue for purposes of this section.
Added by Acts 1986, 69th Leg., 3rd C.S., ch. 10, art. 1, Sec. 17,
eff. Jan. 1, 1987. Amended by Acts 1987, 70th Leg., ch. 11, Sec.
11, eff. April 2, 1987; Acts 1987, 70th Leg., ch. 947, Sec. 4,
eff. Jan. 1, 1988; Acts 1989, 71st Leg., ch. 256, Sec. 3, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 8, eff. May
24, 1991; Acts 1995, 74th Leg., ch. 1012, Sec. 1, eff. Sept. 1,
1995; Acts 1997, 75th Leg., ch. 165, Sec. 29.04, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 814, Sec. 5.08, eff. Sept. 1,
2003.
Sec. 26.043. EFFECTIVE TAX RATE IN CITY IMPOSING MASS TRANSIT
SALES AND USE TAX. (a) In the tax year in which a city has set
an election on the question of whether to impose a local sales
and use tax under Subchapter H, Chapter 453, Transportation Code,
the officer or employee designated to make the calculations
provided by Section 26.04 may not make those calculations until
the outcome of the election is determined. If the election is
determined in favor of the imposition of the tax, the
representative shall subtract from the city's rollback and
effective tax rates the amount that, if applied to the city's
current total value, would impose an amount equal to the amount
of property taxes budgeted in the current tax year to pay for
expenses related to mass transit services.
(b) In a tax year to which this section applies, a reference in
this chapter to the city's effective or rollback tax rate refers
to that rate as adjusted under this section.
(c) For the purposes of this section, "mass transit services"
does not include the construction, reconstruction, or general
maintenance of municipal streets.
Added by Acts 1986, 69th Leg., 3rd C.S., ch. 10, art. 1, Sec. 35,
eff. Jan. 1, 1987. Amended by Acts 1987, 70th Leg., ch. 947, Sec.
6, eff. Jan. 1, 1988; Acts 1991, 72nd Leg., ch. 736, Sec. 1, eff.
June 15, 1991; Acts 1997, 75th Leg., ch. 165, Sec. 29.05, eff.
Sept. 1, 1997.
Sec. 26.044. EFFECTIVE TAX RATE TO PAY FOR STATE CRIMINAL
JUSTICE MANDATE. (a) The first time that a county adopts a tax
rate after September 1, 1991, in which the state criminal justice
mandate applies to the county, the effective maintenance and
operation rate for the county is increased by the rate calculated
according to the following formula:
(State Criminal Justice Mandate)
(Current Total Value - New Property Value)
(b) In the second and subsequent years that a county adopts a
tax rate, if the amount spent by the county for the state
criminal justice mandate increased over the previous year, the
effective maintenance and operation rate for the county is
increased by the rate calculated according to the following
formula:
(This Year's State Criminal Justice Mandate - Previous Year's
State
Criminal Justice Mandate)
(Current Total Value - New Property Value)
(c) The county shall include a notice of the increase in the
effective maintenance and operation rate provided by this
section, including a description and amount of the state criminal
justice mandate, in the information published under Section
26.04(e) and Section 26.06(b) of this code.
(d) In this section, "state criminal justice mandate" means the
amount spent by the county in the previous 12 months providing
for the maintenance and operation cost of keeping inmates in
county-paid facilities after they have been sentenced to the
Texas Department of Criminal Justice as certified by the county
auditor based on information provided by the county sheriff,
minus the amount received from state revenue for reimbursement of
such costs.
Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, Sec. 11.10, eff.
Aug. 29, 1991.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 25.153, eff. September 1, 2009.
Sec. 26.0441. TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE. (a)
In the first tax year in which a taxing unit adopts a tax rate
after January 1, 2000, and in which the enhanced minimum
eligibility standards for indigent health care established under
Section 61.006, Health and Safety Code, apply to the taxing unit,
the effective maintenance and operations rate for the taxing unit
is increased by the rate computed according to the following
formula:
Enhanced Indigent Health Care Expenditures
Amount of Increase = __________________________________________
(Current Total Value - New Property Value)
(b) In each subsequent tax year, if the taxing unit's enhanced
indigent health care expenses exceed the amount of those expenses
for the preceding year, the effective maintenance and operations
rate for the taxing unit is increased by the rate computed
according to the following formula:
(Current Tax Year's Enhanced Indigent Health
Care Expenditures - Preceding Tax Year's
Indigent Health Care Expenditures)
Amount of Increase = __________________________________________
(Current Total Value - New Property Value)
(c) The taxing unit shall include a notice of the increase in
its effective maintenance and operations rate provided by this
section, including a brief description and the amount of the
enhanced indigent health care expenditures, in the information
published under Section 26.04(e) and, if applicable, Section
26.06(b).
(d) In this section, "enhanced indigent health care
expenditures" for a tax year means the amount spent by the taxing
unit for the maintenance and operation costs of providing
indigent health care at the increased minimum eligibility
standards established under Section 61.006, Health and Safety
Code, effective on or after January 1, 2000, in the period
beginning on July 1 of the year preceding the tax year for which
the tax is adopted and ending on June 30 of the tax year for
which the tax is adopted, less the amount of state assistance
received by the taxing unit in accordance with Chapter 61, Health
and Safety Code, that is attributable to those costs.
Added by Acts 1999, 76th Leg., ch. 1377, Sec. 1.27, eff. Sept. 1,
1999.
Sec. 26.045. ROLLBACK RELIEF FOR POLLUTION CONTROL REQUIREMENTS.
(a) The rollback tax rate for a political subdivision of this
state is increased by the rate that, if applied to the total
current value, would impose an amount of taxes equal to the
amount the political subdivision will spend out of its
maintenance and operation funds under Section 26.012(16) to pay
for a facility, device, or method for the control of air, water,
or land pollution that is necessary to meet the requirements of a
permit issued by the Texas Commission on Environmental Quality.
(b) In this section, "facility, device, or method for control of
air, water, or land pollution" means any land, structure,
building, installation, excavation, machinery, equipment, or
device, and any attachment or addition to or reconstruction,
replacement, or improvement of that property, that is used,
constructed, acquired, or installed wholly or partly to meet or
exceed rules or regulations adopted by any environmental
protection agency of the United States or this state for the
prevention, monitoring, control, or reduction of air, water, or
land pollution.
(c) To receive an adjustment to the rollback tax rate under this
section, a political subdivision shall present information to the
executive director of the Texas Commission on Environmental
Quality in a permit application or in a request for any exemption
from a permit that would otherwise be required detailing:
(1) the anticipated environmental benefits from the installation
of the facility, device, or method for the control of air, water,
or land pollution;
(2) the estimated cost of the pollution control facility,
device, or method; and
(3) the purpose of the installation of the facility, device, or
method, and the proportion of the installation that is pollution
control property.
(d) Following submission of the information required by
Subsection (c), the executive director of the Texas Commission on
Environmental Quality shall determine whether the facility,
device, or method is used wholly or partly as a facility, device,
or method for the control of air, water, or land pollution. If
the executive director determines that the facility, device, or
method is used wholly or partly to control pollution, the
director shall issue a letter to the political subdivision
stating that determination and the portion of the cost of the
installation that is pollution control property.
(e) The Texas Commission on Environmental Quality may charge a
political subdivision seeking a determination that property is
pollution control property an additional fee not to exceed its
administrative costs for processing the information, making the
determination, and issuing the letter required by this section.
The commission may adopt rules to implement this section.
(f) The Texas Commission on Environmental Quality shall adopt
rules establishing a nonexclusive list of facilities, devices, or
methods for the control of air, water, or land pollution, which
must include:
(1) coal cleaning or refining facilities;
(2) atmospheric or pressurized and bubbling or circulating
fluidized bed combustion systems and gasification fluidized bed
combustion combined cycle systems;
(3) ultra-supercritical pulverized coal boilers;
(4) flue gas recirculation components;
(5) syngas purification systems and gas-cleanup units;
(6) enhanced heat recovery systems;
(7) exhaust heat recovery boilers;
(8) heat recovery steam generators;
(9) superheaters and evaporators;
(10) enhanced steam turbine systems;
(11) methanation;
(12) coal combustion or gasification byproduct and coproduct
handling, storage, or treatment facilities;
(13) biomass cofiring storage, distribution, and firing systems;
(14) coal cleaning or drying processes such as coal
drying/moisture reduction, air jigging, precombustion
decarbonization, and coal flow balancing technology;
(15) oxy-fuel combustion technology, amine or chilled ammonia
scrubbing, fuel or emission conversion through the use of
catalysts, enhanced scrubbing technology, modified combustion
technology such as chemical looping, and cryogenic technology;
(16) if the United States Environmental Protection Agency adopts
a final rule or regulation regulating carbon dioxide as a
pollutant, property that is used, constructed, acquired, or
installed wholly or partly to capture carbon dioxide from an
anthropogenic source in this state that is geologically
sequestered in this state;
(17) fuel cells generating electricity using hydrogen derived
from coal, biomass, petroleum coke, or solid waste; and
(18) any other equipment designed to prevent, capture, abate, or
monitor nitrogen oxides, volatile organic compounds, particulate
matter, mercury, carbon monoxide, or any criteria pollutant.
(g) The Texas Commission on Environmental Quality by rule shall
update the list adopted under Subsection (f) at least once every
three years. An item may be removed from the list if the
commission finds compelling evidence to support the conclusion
that the item does not render pollution control benefits.
(h) Notwithstanding the other provisions of this section, if the
facility, device, or method for the control of air, water, or
land pollution described in a permit application or in a request
for any exemption from a permit that would otherwise be required
is a facility, device, or method included on the list adopted
under Subsection (f), the executive director of the Texas
Commission on Environmental Quality, not later than the 30th day
after the date of receipt of the information required by
Subsections (c)(2) and (3) and without regard to whether the
information required by Subsection (c)(1) has been submitted,
shall determine that the facility, device, or method described in
the permit application or in the request for an exemption from a
permit that would otherwise be required is used wholly or partly
as a facility, device, or method for the control of air, water,
or land pollution and shall take the action that is required by
Subsection (d) in the event such a determination is made.
(i) A political subdivision of the state seeking an adjustment
in its rollback tax rate under this section shall provide to its
tax assessor a copy of the letter issued by the executive
director of the Texas Commission on Environmental Quality under
Subsection (d). The tax assessor shall accept the copy of the
letter from the executive director as conclusive evidence that
the facility, device, or method is used wholly or partly as
pollution control property and shall adjust the rollback tax rate
for the political subdivision as provided for by Subsection (a).
Added by Acts 1993, 73rd Leg., ch. 285, Sec. 4, eff. Aug. 30,
1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1277, Sec. 5, eff. September 1, 2007.
Sec. 26.05. TAX RATE. (a) The governing body of each taxing
unit, before the later of September 30 or the 60th day after the
date the certified appraisal roll is received by the taxing unit,
shall adopt a tax rate for the current tax year and shall notify
the assessor for the unit of the rate adopted. The tax rate
consists of two components, each of which must be approved
separately. The components are:
(1) for a taxing unit other than a school district, the rate
that, if applied to the total taxable value, will impose the
total amount published under Section 26.04(e)(3)(C), less any
amount of additional sales and use tax revenue that will be used
to pay debt service, or, for a school district, the rate
published under Section 44.004(c)(5)(A)(ii)(b), Education Code;
and
(2) the rate that, if applied to the total taxable value, will
impose the amount of taxes needed to fund maintenance and
operation expenditures of the unit for the next year.
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year,
and the annual tax rate must be set by ordinance, resolution, or
order, depending on the method prescribed by law for adoption of
a law by the governing body. The vote on the ordinance,
resolution, or order setting the tax rate must be separate from
the vote adopting the budget. The vote on the ordinance,
resolution, or order setting a tax rate that exceeds the
effective tax rate must be a record vote. A motion to adopt an
ordinance, resolution, or order setting a tax rate that exceeds
the effective tax rate must be made in the following form: "I
move that the property tax rate be increased by the adoption of a
tax rate of (specify tax rate), which is effectively a (insert
percentage by which the proposed tax rate exceeds the effective
tax rate) percent increase in the tax rate." If the ordinance,
resolution, or order sets a tax rate that, if applied to the
total taxable value, will impose an amount of taxes to fund
maintenance and operation expenditures of the taxing unit that
exceeds the amount of taxes imposed for that purpose in the
preceding year, the taxing unit must:
(1) include in the ordinance, resolution, or order in type
larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL RAISE MORE
TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.";
and
(B) if the tax rate exceeds the effective maintenance and
operations rate, the following statement: "THE TAX RATE WILL
EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE
EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT
AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000
HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of any Internet website operated by
the unit:
(A) the following statement: "(Insert name of unit) ADOPTED A
TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND
OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the effective maintenance and
operations rate, the following statement: "THE TAX RATE WILL
EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE
EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT
AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000
HOME BY APPROXIMATELY $(Insert amount)."
(c) If the governing body of a taxing unit does not adopt a tax
rate before the date required by Subsection (a), the tax rate for
the taxing unit for that tax year is the lower of the effective
tax rate calculated for that tax year or the tax rate adopted by
the taxing unit for the preceding tax year. A tax rate
established by this subsection is treated as an adopted tax rate.
Before the fifth day after the establishment of a tax rate by
this subsection, the governing body of the taxing unit must
ratify the applicable tax rate in the manner required by
Subsection (b).
(d) The governing body of a taxing unit other than a school
district may not adopt a tax rate that exceeds the lower of the
rollback tax rate or the effective tax rate calculated as
provided by this chapter until the governing body has held two
public hearings on the proposed tax rate and has otherwise
complied with Section 26.06 and Section 26.065. The governing
body of a taxing unit shall reduce a tax rate set by law or by
vote of the electorate to the lower of the rollback tax rate or
the effective tax rate and may not adopt a higher rate unless it
first complies with Section 26.06.
(e) A person who owns taxable property is entitled to an
injunction restraining the collection of taxes by a taxing unit
in which the property is taxable if the taxing unit has not
complied with the requirements of this section and the failure to
comply was not in good faith. An action to enjoin the collection
of taxes must be filed prior to the date a taxing unit delivers
substantially all of its tax bills.
(f) Except as required by the law under which an obligation was
created, the governing body may not apply any tax revenues
generated by the rate described in Subsection (a)(1) of this
section for any purpose other than the retirement of debt.
(g) Notwithstanding Subsection (a), the governing body of a
school district that elects to adopt a tax rate before the
adoption of a budget for the fiscal year that begins in the
current tax year may adopt a tax rate for the current tax year
before receipt of the certified appraisal roll for the school
district if the chief appraiser of the appraisal district in
which the school district participates has certified to the
assessor for the school district an estimate of the taxable value
of property in the school district as provided by Section
26.01(e). If a school district adopts a tax rate under this
subsection, the effective tax rate and the rollback tax rate of
the district shall be calculated based on the certified estimate
of taxable value.
Acts 1979, 66th Leg., p. 2268, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 164, ch. 13,
Sec. 117, eff. Jan. 1, 1982; Acts 1985, 69th Leg., ch. 657, Sec.
3, eff. June 14, 1985; Acts 1987, 70th Leg., ch. 699, Sec. 2,
eff. June 19, 1987; Acts 1987, 70th Leg., ch. 947, Sec. 7, eff.
Jan. 1, 1988; Acts 1987, 70th Leg., ch. 988, Sec. 2, eff. June
18, 1987; Acts 1991, 72nd Leg., ch. 404, Sec. 1, eff. Jan. 1,
1992; Acts 1997, 75th Leg., ch. 165, Sec. 29.06, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1039, Sec. 27, eff. Jan. 1, 1998;
Acts 1999, 76th Leg., ch. 398, Sec. 3, eff. Aug. 30, 1999; Acts
1999, 76th Leg., ch. 423, Sec. 1, eff. Jan. 1, 2000; Acts 1999,
76th Leg., ch. 1358, Sec. 2, eff. Jan. 1, 2000.
Amended by:
Acts 2005, 79th Leg., Ch.
412, Sec. 13, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1368, Sec. 1, eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 14.001, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
668, Sec. 1, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1328, Sec. 86, eff. September 1, 2009.
Sec. 26.051. EVIDENCE OF UNRECORDED TAX RATE ADOPTION. (a) If
a taxing unit does not make a proper record of the adoption of a
tax rate for a year but the tax rate can be determined by
examining the tax rolls for that year, the governing body of the
taxing unit may take testimony or make other inquiry to determine
whether a tax rate was properly adopted for that year. If the
governing body determines that a tax rate was properly adopted,
it may order that its official records for that year be amended
nunc pro tunc to reflect the adoption of the rate.
(b) An amendment of the official records made under Subsection
(a) of this section is prima facie evidence that the tax rate
entered into the records was properly and regularly adopted for
that year.
Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.01(a), eff. Aug.
28, 1989.
Sec. 26.052. SIMPLIFIED TAX RATE NOTICE FOR TAXING UNITS WITH
LOW TAX LEVIES. (a) This section applies only to a taxing unit
for which the total tax rate proposed for the current tax year:
(1) is 50 cents or less per $100 of taxable value; and
(2) would impose taxes of $500,000 or less when applied to the
current total value for the taxing unit.
(b) A taxing unit to which this section applies is exempt from
the notice and publication requirements of Section 26.04(e) and
is not subject to an injunction under Section 26.04(g) for
failure to comply with those requirements.
(c) A taxing unit to which this section applies may provide
public notice of its proposed tax rate in either of the following
methods not later than the seventh day before the date on which
the tax rate is adopted:
(1) mailing a notice of the proposed tax rate to each owner of
taxable property in the taxing unit; or
(2) publishing notice of the proposed tax rate in the legal
notices section of a newspaper having general circulation in the
taxing unit.
(d) A taxing unit that provides public notice of a proposed tax
rate under Subsection (c) is exempt from Sections 26.05(d) and
26.06 and is not subject to an injunction under Section 26.05(e)
for failure to comply with Section 26.05(d). A taxing unit that
provides public notice of a proposed tax rate under Subsection
(c) may not adopt a tax rate 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) Public notice provided under Subsection (c) must specify:
(1) the tax rate that the governing body proposes to adopt;
(2) the date, time, and location of the meeting of the governing
body of the taxing unit at which the governing body will consider
adopting the proposed tax rate; and
(3) if the proposed tax rate for the taxing unit exceeds the
unit's effective tax rate calculated as provided by Section
26.04, a statement substantially identical to the following: "The
proposed tax rate would increase total taxes in (name of taxing
unit) by (percentage