85R14943 SMH-F By: Bonnen of Brazoria H.B. No. 15 A BILL TO BE ENTITLED AN ACT relating to ad valorem taxation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. This Act may be cited as the Property Tax Payer Empowerment Act of 2017. SECTION 2. Section 5.07, Tax Code, is amended by adding Subsection (f) to read as follows: (f) The comptroller shall prescribe the form of the worksheets to be used by the designated officer or employee of each taxing unit in calculating the no new taxes tax rate and rollback tax rate for the unit as required by Chapter 26. The form must be in an electronic format and be capable of: (1) being completed electronically; (2) performing calculations automatically based on the data entered by the designated officer or employee; (3) being certified by the designated officer or employee after completion; and (4) being submitted electronically to the comptroller on completion and certification. SECTION 3. Section 5.091, Tax Code, is amended to read as follows: Sec. 5.091. STATEWIDE LIST OF TAX RATES. (a) Each year the comptroller shall prepare a list that includes the total tax rate imposed by each taxing unit in this state[, other than a school district, if the tax rate is reported to the comptroller,] for the year [preceding the year] in which the list is prepared. The comptroller shall list the tax rates alphabetically according to: (1) the county or counties in which each taxing unit is located; and (2) the name of each taxing unit [in descending order]. (b) Not later than January 1 [December 31] of the following [each] year, the comptroller shall publish on the comptroller's Internet website the list required by Subsection (a). SECTION 4. Chapter 5, Tax Code, is amended by adding Section 5.092 to read as follows: Sec. 5.092. STATEWIDE DATABASE OF OTHER PROPERTY-TAX-RELATED INFORMATION. (a) The comptroller shall create and maintain a property tax database that: (1) contains information that is provided by designated officers or employees of taxing units in the manner required by the comptroller; (2) is continuously updated as preliminary and revised data become available to and are provided by the designated officers or employees of taxing units; (3) is accessible to the public; and (4) is searchable by property address. (b) The database must include, with respect to each property listed on an appraisal roll: (1) the property's identification number; (2) the property's market value; (3) the property's taxable value; (4) the name of each taxing unit in which the property is located; (5) for each taxing unit other than a school district in which the property is located: (A) the no new taxes tax rate; and (B) the rollback tax rate; (6) for each school district in which the property is located: (A) the rate to maintain the same amount of state and local revenue per weighted student that the district received in the school year beginning in the preceding tax year; and (B) the rollback tax rate; (7) the tax rate proposed by the governing body of each taxing unit in which the property is located; (8) for each taxing unit other than a school district in which the property is located, the taxes that would be imposed on the property if the unit adopted a tax rate equal to: (A) the no new taxes tax rate; and (B) the proposed tax rate; (9) for each school district in which the property is located, the taxes that would be imposed on the property if the unit adopted a tax rate equal to: (A) the rate to maintain the same amount of state and local revenue per weighted student that the district received in the school year beginning in the preceding tax year; and (B) the proposed tax rate; (10) for each taxing unit other than a school district in which the property is located, the difference between the amount calculated under Subdivision (8)(A) and the amount calculated under Subdivision (8)(B); (11) for each school district in which the property is located, the difference between the amount calculated under Subdivision (9)(A) and the amount calculated under Subdivision (9)(B); (12) the date and location of each public hearing, if applicable, on the proposed tax rate to be held by the governing body of each taxing unit in which the property is located; and (13) the date and location of the public meeting in which the tax rate will be adopted to be held by the governing body of each taxing unit in which the property is located. (c) The database must provide a link to the information posted under Section 26.17 on the Internet website of each taxing unit in which the property is located. (d) The officer or employee designated by the governing body of each taxing unit to calculate the no new taxes tax rate and the rollback tax rate for the unit must electronically submit to the comptroller: (1) the information described by Subsection (b) as the information becomes available; and (2) the worksheets prepared under Section 26.04(d-1) at the same time the officer or employee submits the tax rates to the governing body of the unit under Section 26.04(e). (e) The comptroller shall deliver by e-mail to the designated officer or employee confirmation of receipt of the worksheets submitted under Subsection (d)(2). The comptroller shall incorporate the worksheets into the database and make them available to the public not later than the third day after the date the comptroller receives them. SECTION 5. Sections 25.19(b) and (i), Tax Code, are amended to read as follows: (b) The chief appraiser shall separate real from personal property and include in the notice for each: (1) a list of the taxing units in which the property is taxable; (2) the appraised value of the property in the preceding year; (3) the taxable value of the property in the preceding year for each taxing unit taxing the property; (4) the appraised value of the property for the current year, the kind and amount of each exemption and partial exemption, if any, approved for the property for the current year and for the preceding year, and, if an exemption or partial exemption that was approved for the preceding year was canceled or reduced for the current year, the amount of the exemption or partial exemption canceled or reduced; (5) [if the appraised value is greater than it was in the preceding year, the amount of tax that would be imposed on the property on the basis of the tax rate for the preceding year; [(6)] in italic typeface, the following statement: "The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials"; (6) [(7)] a detailed explanation of the time and procedure for protesting the value; (7) [(8)] the date and place the appraisal review board will begin hearing protests; and (8) [(9)] a brief explanation that the governing body of each taxing unit decides whether or not taxes on the property will increase and the appraisal district only determines the value of the property. (i) Delivery with a notice required by Subsection (a) or (g) of a copy of the pamphlet published by the comptroller under Section 5.06 or a copy of the notice published by the chief appraiser under Section 41.70 is sufficient to comply with the requirement that the notice include the information specified by Subsection (b)(6) [(b)(7)] or (g)(3), as applicable. SECTION 6. Section 26.012(7), Tax Code, is amended to read as follows: (7) "Debt" means a bond, warrant, certificate of obligation, or other evidence of indebtedness owed by a taxing unit that has been approved at an election and 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. SECTION 7. Section 26.012(9), Tax Code, is redesignated as Section 26.012(18), Tax Code, and amended to read as follows: (18) "No new taxes [(9) "Effective] maintenance and operations rate" means a rate expressed in dollars per $100 of taxable value and calculated according to the following formula: NO NEW TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE = (LAST YEAR'S LEVY - LAST YEAR'S DEBT LEVY - LAST YEAR'S JUNIOR COLLEGE LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE) SECTION 8. The heading to Section 26.04, Tax Code, is amended to read as follows: Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; NO NEW TAXES [EFFECTIVE] AND ROLLBACK TAX RATES. SECTION 9. Section 26.04, Tax Code, is amended by amending Subsections (b), (c), (d), (e), (e-1), (f), (g), (i), and (j) and adding Subsections (c-1), (d-1), (d-2), (d-3), (d-4), (e-2), and (h-1) to read as follows: (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 anticipated 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 no new taxes [effective] tax rate and the rollback tax rate for the unit, where: (1) "No new taxes ["Effective] tax rate" means a rate expressed in dollars per $100 of taxable value calculated according to the following formula: NO NEW TAXES [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 = (NO NEW TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE (c-1) Notwithstanding any other provision of this section, the governing body may direct the designated officer or employee to substitute "1.08" for "1.04" in the calculation of the rollback tax rate if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States. (d) The no new taxes [effective] tax rate for a county is the sum of the no new taxes [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. (d-1) The designated officer or employee shall use the worksheet forms prescribed by the comptroller under Section 5.07(f) in calculating the no new taxes tax rate and the rollback tax rate. (d-2) The designated officer or employee shall submit the worksheets to: (1) the chief appraiser of the appraisal district in which the taxing unit is located; and (2) the chief financial officer or the auditor for the taxing unit. (d-3) The designated officer or employee may not submit the no new taxes tax rate and the rollback tax rate to the governing body of the taxing unit and the governing body of the unit may not adopt a tax rate until: (1) the chief appraiser submits to the governing body of the unit a written certification that the values used in the calculations are the same as the values shown in the unit's appraisal roll; and (2) the chief financial officer or the auditor for the unit submits to the governing body of the unit a written certification that the rollback tax rate has been calculated correctly. (d-4) The comptroller shall adopt rules governing the form of the certifications required by Subsection (d-3) and the manner in which they are required to be submitted. (e) By August 7 or as soon thereafter as practicable, the designated officer or employee shall submit the rates to the governing body. The designated officer or employee [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 no new taxes [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 no new taxes [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 tax 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 tax 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 tax rate certification requirements imposed by Subsections (d-2) and (d-3) and the notice requirements imposed by Subsections (e)(1)-(6) do not apply to a school district. (e-2) By August 7 or as soon thereafter as practicable, the chief appraiser of the appraisal district in which the property is located shall deliver by regular mail or e-mail to each property owner a notice that the estimated amount of taxes to be imposed on the owner's property by each taxing unit in which the property is located may be found in the property tax database maintained by the comptroller under Section 5.092. The notice must include: (1) the address of the Internet website at which the information may be found; (2) a statement that the property owner may request a written copy of the information from the assessor for each taxing unit in which the property is located; and (3) the address and telephone number of each assessor from whom the written copy may be requested. (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 no new taxes [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 or Section 5.092(d) [and the failure to comply was not in good faith]. (h-1) Notwithstanding Subsection (h), the assessor may not certify an anticipated collection rate under Subsection (b) that is lower than the lowest actual collection rate in the preceding three years. (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 no new taxes [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 no new taxes [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 no new taxes [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 no new taxes [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. SECTION 10. Section 26.041, Tax Code, is amended by amending Subsections (a), (b), (c), (e), (g), and (h) and adding Subsection (c-1) to read as follows: (a) In the first year in which an additional sales and use tax is required to be collected, the no new taxes [effective] tax rate and rollback tax rate for the unit are calculated according to the following formulas: NO NEW TAXES [EFFECTIVE] TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] - SALES TAX GAIN RATE and ROLLBACK TAX RATE = (NO NEW TAXES [EFFECTIVE] MAINTENANCE AND OPERATIONS RATE x 1.04 [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 TAX RATE = [(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT TOTAL 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 no new taxes [effective] tax rate and rollback tax rate for the unit are calculated according to the following formulas: NO NEW TAXES [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 1.04 [1.08]) / ([TOTAL] CURRENT TOTAL 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. (c-1) Notwithstanding any other provision of this section, the governing body may direct the designated officer or employee to substitute "1.08" for "1.04" in the calculation of the rollback tax rate if any part of the taxing unit is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States. (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 no new taxes [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. (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 no new taxes [effective] tax rate for the unit is the no new taxes [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 no new taxes [effective] tax rate for the unit is the no new taxes [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. SECTION 11. The heading to Section 26.043, Tax Code, is amended to read as follows: Sec. 26.043. ROLLBACK AND NO NEW TAXES [EFFECTIVE] TAX RATES [RATE] IN CITY IMPOSING MASS TRANSIT SALES AND USE TAX. SECTION 12. Sections 26.043(a) and (b), Tax Code, are amended to read as follows: (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 no new taxes [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 no new taxes [effective] or rollback tax rate refers to that rate as adjusted under this section. SECTION 13. The heading to Section 26.044, Tax Code, is amended to read as follows: Sec. 26.044. NO NEW TAXES [EFFECTIVE] TAX RATE TO PAY FOR STATE CRIMINAL JUSTICE MANDATE. SECTION 14. Sections 26.044(a), (b), and (c), Tax Code, are amended to read as follows: (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 no new taxes [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 no new taxes [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 no new taxes [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]. SECTION 15. Sections 26.0441(a), (b), and (c), Tax Code, are amended to read as follows: (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 no new taxes [effective] maintenance and operations rate for the taxing unit is increased by the rate computed according to the following formula: Amount of Increase = Enhanced Indigent Health Care Expenditures / (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 no new taxes [effective] maintenance and operations rate for the taxing unit is increased by the rate computed according to the following formula: Amount of Increase = (Current Tax Year's Enhanced Indigent Health Care Expenditures - Preceding Tax Year's Indigent Health Care Expenditures) / (Current Total Value - New Property Value) (c) The taxing unit shall include a notice of the increase in its no new taxes [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). SECTION 16. Section 26.05, Tax Code, is amended by amending Subsections (b), (c), (d), (e), and (g) and adding Subsections (d-1) and (d-2) to read as follows: (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. For a taxing unit other than a school district, the vote on the ordinance, resolution, or order setting a tax rate that exceeds the no new taxes [effective] tax rate must be a record vote, and at least 60 percent of the members of the governing body must vote in favor of the ordinance, resolution, or order. For a school district, the vote on the ordinance, resolution, or order setting a tax rate that exceeds the sum of the no new taxes [effective] maintenance and operations tax rate of the district as determined under Section 26.08(i) and the district's current debt rate must be a record vote, and at least 60 percent of the members of the governing body must vote in favor of the ordinance, resolution, or order. A motion to adopt an ordinance, resolution, or order setting a tax rate that exceeds the no new taxes [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 no new taxes [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 no new taxes [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 NO NEW TAXES [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 the [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 no new taxes [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 NO NEW TAXES [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 no new taxes [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 no new taxes [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 no new taxes [effective] tax rate and may not adopt a higher rate unless it first complies with Section 26.06. (d-1) The governing body of a taxing unit may not hold a public hearing on a proposed tax rate or a public meeting to adopt a tax rate until the 14th day after the date the officer or employee designated by the governing body of the unit to calculate the no new taxes tax rate and the rollback tax rate for the unit electronically submits to the comptroller the information described by Section 5.092(d). (d-2) Notwithstanding Subsection (a), the governing body of a taxing unit other than a school district may not adopt a tax rate until: (1) the comptroller has included the information for the current tax year specified by Section 5.092 in the comptroller's property tax database; and (2) the chief appraiser of the appraisal district in which the taxing unit participates has delivered the notice required by Section 26.04(e-2). (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 or Section 26.04 [and the failure to comply was not in good faith]. An action to enjoin the collection of taxes must be filed not later than the 15th day after the date the taxing unit adopts a tax rate. A property owner is not required to pay the taxes imposed by a taxing unit on the owner's property while an action filed by the property owner to enjoin the collection of taxes imposed by the taxing unit on the owner's property is pending. If the property owner pays the taxes and subsequently prevails in the action, the property owner is entitled to a refund of the taxes paid, together with reasonable attorney's fees and court costs. The property owner is not required to apply to the collector for the taxing unit to receive the refund [prior to the date a taxing unit delivers substantially all of its tax bills]. (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 no new taxes [effective] tax rate and the rollback tax rate of the district shall be calculated based on the certified estimate of taxable value. SECTION 17. Section 26.052(e), Tax Code, is amended to read as follows: (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 no new taxes [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 by which the proposed tax rate exceeds the no new taxes [effective] tax rate)." SECTION 18. Sections 26.06(b), (c), (d), and (e), Tax Code, are amended to read as follows: (b) The notice of a public hearing may not be smaller than one-quarter page of a standard-size or a tabloid-size newspaper, and the headline on the notice must be in 24-point or larger type. The notice must contain a statement in the following form: "NOTICE OF PUBLIC HEARING ON TAX INCREASE "The (name of the taxing unit) will hold two public hearings on a proposal to increase total tax revenues from properties on the tax roll in the preceding tax year by (percentage by which proposed tax rate exceeds lower of rollback tax rate or no new taxes [effective] tax rate calculated under this chapter) percent. Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted. "The first public hearing will be held on (date and time) at (meeting place). "The second public hearing will be held on (date and time) at (meeting place). "(Names of all members of the governing body, showing how each voted on the proposal to consider the tax increase or, if one or more were absent, indicating the absences.) "The average taxable value of a residence homestead in (name of taxing unit) last year was $____ (average taxable value of a residence homestead in the taxing unit for the preceding tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). Based on last year's tax rate of $____ (preceding year's adopted tax rate) per $100 of taxable value, the amount of taxes imposed last year on the average home was $____ (tax on average taxable value of a residence homestead in the taxing unit for the preceding tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). "The average taxable value of a residence homestead in (name of taxing unit) this year is $____ (average taxable value of a residence homestead in the taxing unit for the current tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). If the governing body adopts the no new taxes [effective] tax rate for this year of $____ (no new taxes [effective] tax rate) per $100 of taxable value, the amount of taxes imposed this year on the average home would be $____ (tax on average taxable value of a residence homestead in the taxing unit for the current tax year, disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). "If the governing body adopts the proposed tax rate of $____ (proposed tax rate) per $100 of taxable value, the amount of taxes imposed this year on the average home would be $____ (tax on the average taxable value of a residence in the taxing unit for the current year disregarding residence homestead exemptions available only to disabled persons or persons 65 years of age or older). "Members of the public are encouraged to attend the hearings and express their views." (c) The notice of a public hearing under this section may be delivered by mail to each property owner in the unit, or may be published in a newspaper. If the notice is published in a newspaper, it may not be in the part of the paper in which legal notices and classified advertisements appear. The [If the taxing unit operates an Internet website, the] notice must be posted on the Internet website operated by the taxing unit from the date the notice is first published until the second public hearing is concluded. (d) At the public hearings the governing body shall announce the date, time, and place of the meeting at which it will vote on the proposed tax rate. After each hearing the governing body shall give notice of the meeting at which it will vote on the proposed tax rate and the notice shall be in the same form as prescribed by Subsections (b) and (c), except that it must state the following: "NOTICE OF TAX REVENUE INCREASE "The (name of the taxing unit) conducted public hearings on (date of first hearing) and (date of second hearing) on a proposal to increase the total tax revenues of the (name of the taxing unit) from properties on the tax roll in the preceding year by (percentage by which proposed tax rate exceeds lower of rollback tax rate or no new taxes [effective] tax rate calculated under this chapter) percent. "The total tax revenue proposed to be raised last year at last year's tax rate of (insert tax rate for the preceding year) for each $100 of taxable value was (insert total amount of taxes imposed in the preceding year). "The total tax revenue proposed to be raised this year at the proposed tax rate of (insert proposed tax rate) for each $100 of taxable value, excluding tax revenue to be raised from new property added to the tax roll this year, is (insert amount computed by multiplying proposed tax rate by the difference between current total value and new property value). "The total tax revenue proposed to be raised this year at the proposed tax rate of (insert proposed tax rate) for each $100 of taxable value, including tax revenue to be raised from new property added to the tax roll this year, is (insert amount computed by multiplying proposed tax rate by current total value). "The (governing body of the taxing unit) is scheduled to vote on the tax rate that will result in that tax increase at a public meeting to be held on (date of meeting) at (location of meeting, including mailing address) at (time of meeting). "The (governing body of the taxing unit) proposes to use the increase in total tax revenue for the purpose of (description of purpose of increase)." (e) The meeting to vote on the tax increase may not be earlier than the third day or later than the 14th day after the date of the second public hearing. The meeting must be held inside the boundaries of the taxing unit in a publicly owned building or, if a suitable publicly owned building is not available, in a suitable building to which the public normally has access. If the governing body does not adopt a tax rate that exceeds the lower of the rollback tax rate or the no new taxes [effective] tax rate by the 14th day, it must give a new notice under Subsection (d) before it may adopt a rate that exceeds the lower of the rollback tax rate or the no new taxes [effective] tax rate. SECTION 19. Section 26.065(b), Tax Code, is amended to read as follows: (b) The taxing [If the taxing unit owns, operates, or controls an Internet website, the] unit shall post notice of the public hearing on the Internet website owned, operated, or controlled by the unit continuously for at least seven days immediately before the public hearing on the proposed tax rate increase and at least seven days immediately before the date of the vote proposing the increase in the tax rate. SECTION 20. The heading to Section 26.08, Tax Code, is amended to read as follows: Sec. 26.08. ELECTION TO RATIFY TAX RATE [SCHOOL TAXES]. SECTION 21. Sections 26.08(a), (b), (d), (d-1), (d-2), (e), (g), (h), (n), and (p), Tax Code, are amended to read as follows: (a) If the governing body of a taxing unit [school district] adopts a tax rate that exceeds the taxing unit's [district's] rollback tax rate, the registered voters of the taxing unit [district] at an election held for that purpose must determine whether to approve the adopted tax rate. When increased expenditure of money by a taxing unit [school district] is necessary to respond to a disaster, including a tornado, hurricane, flood, or other calamity, but not including a drought, that has impacted the taxing unit [a school district] and the governor has requested federal disaster assistance for the area in which the taxing unit [school district] is located, an election is not required under this section to approve the tax rate adopted by the governing body for the year following the year in which the disaster occurs. (b) The governing body shall order that the election be held in the taxing unit [school district] on a date not less than 30 or more than 90 days after the day on which it adopted the tax rate. Section 41.001, Election Code, does not apply to the election unless a date specified by that section falls within the time permitted by this section. At the election, the ballots shall be prepared to permit voting for or against the proposition: "Approving the ad valorem tax rate of $_____ per $100 valuation in (name of taxing unit [school district]) for the current year, a rate that is $_____ higher per $100 valuation than the [school district] rollback tax rate of (name of taxing unit), for the purpose of (description of purpose of increase)." The ballot proposition must include the adopted tax rate and the difference between that rate and the rollback tax rate in the appropriate places. (d) If the proposition is not approved as provided by Subsection (c), the governing body may not adopt a tax rate for the taxing unit [school district] for the current year that exceeds the taxing unit's [school district's] rollback tax rate. (d-1) If, after tax bills for the taxing unit [school district] have been mailed, a proposition to approve the taxing unit's [school district's] adopted tax rate is not approved by the voters of the taxing unit [district] at an election held under this section, on subsequent adoption of a new tax rate by the governing body of the taxing unit [district], the assessor for the taxing unit [school] shall prepare and mail corrected tax bills. The assessor shall include with each bill a brief explanation of the reason for and effect of the corrected bill. The date on which the taxes become delinquent for the year is extended by a number of days equal to the number of days between the date the first tax bills were sent and the date the corrected tax bills were sent. (d-2) If a property owner pays taxes calculated using the originally adopted tax rate of the taxing unit [school district] and the proposition to approve the adopted tax rate is not approved by the voters, the taxing unit [school district] shall refund the difference between the amount of taxes paid and the amount due under the subsequently adopted rate if the difference between the amount of taxes paid and the amount due under the subsequent rate is $1 or more. If the difference between the amount of taxes paid and the amount due under the subsequent rate is less than $1, the taxing unit [school district] shall refund the difference on request of the taxpayer. An application for a refund of less than $1 must be made within 90 days after the date the refund becomes due or the taxpayer forfeits the right to the refund. (e) For purposes of this section, local tax funds dedicated to a junior college district under Section 45.105(e), Education Code, shall be eliminated from the calculation of the tax rate adopted by the governing body of a [the] school district. However, the funds dedicated to the junior college district are subject to Section 26.085. (g) In a school district that received distributions from an equalization tax imposed under former Chapter 18, Education Code, the no new taxes [effective] rate of that tax as of the date of the county unit system's abolition is added to the district's rollback tax rate. (h) For purposes of this section, increases in taxable values and tax levies occurring within a reinvestment zone under Chapter 311 (Tax Increment Financing Act), in which a school [the] district is a participant, shall be eliminated from the calculation of the tax rate adopted by the governing body of the school district. (n) For purposes of this section, the rollback tax rate of a school district whose maintenance and operations tax rate for the 2005 tax year was $1.50 or less per $100 of taxable value is: (1) for the 2006 tax year, the sum of the rate that is equal to 88.67 percent of the maintenance and operations tax rate adopted by the district for the 2005 tax year, the rate of $0.04 per $100 of taxable value, and the district's current debt rate; and (2) for the 2007 and subsequent tax years, the lesser of the following: (A) the sum of the following: (i) the rate per $100 of taxable value that is equal to the product of the state compression percentage, as determined under Section 42.2516, Education Code, for the current year and $1.50; (ii) the rate of $0.04 per $100 of taxable value; (iii) the rate that is equal to the sum of the differences for the 2006 and each subsequent tax year between the adopted tax rate of the district for that year if the rate was approved at an election under this section and the rollback tax rate of the district for that year; and (iv) the district's current debt rate; or (B) the sum of the following: (i) the no new taxes [effective] maintenance and operations tax rate of the district as computed under Subsection (i) [or (k), as applicable]; (ii) the rate per $100 of taxable value that is equal to the product of the state compression percentage, as determined under Section 42.2516, Education Code, for the current year and $0.06; and (iii) the district's current debt rate. (p) Notwithstanding Subsections (i), (n), and (o), if for the preceding tax year a school district adopted a maintenance and operations tax rate that was less than the district's no new taxes [effective] maintenance and operations tax rate for that preceding tax year, the rollback tax rate of the district for the current tax year is calculated as if the district adopted a maintenance and operations tax rate for the preceding tax year that was equal to the district's no new taxes [effective] maintenance and operations tax rate for that preceding tax year. SECTION 22. Section 26.08(i), Tax Code, as effective September 1, 2017, is amended to read as follows: (i) For purposes of this section, the no new taxes [effective] maintenance and operations tax rate of a school district is the tax rate that, applied to the current total value for the district, would impose taxes in an amount that, when added to state funds that would be distributed to the district under Chapter 42, Education Code, for the school year beginning in the current tax year using that tax rate, would provide the same amount of state funds distributed under Chapter 42, Education Code, and maintenance and operations taxes of the district per student in weighted average daily attendance for that school year that would have been available to the district in the preceding year if the funding elements for Chapters 41 and 42, Education Code, for the current year had been in effect for the preceding year. SECTION 23. Sections 26.16(a) and (d), Tax Code, are amended to read as follows: (a) The county assessor-collector for each county [that maintains an Internet website] shall post on the Internet website maintained by [of] the county the following information for the most recent five tax years beginning with the 2012 tax year for each taxing unit all or part of the territory of which is located in the county: (1) the adopted tax rate; (2) the maintenance and operations rate; (3) the debt rate; (4) the no new taxes [effective] tax rate; (5) the no new taxes [effective] maintenance and operations rate; and (6) the rollback tax rate. (d) The county assessor-collector shall post immediately below the table prescribed by Subsection (c) the following statement: "The county is providing this table of property tax rate information as a service to the residents of the county. Each individual taxing unit is responsible for calculating the property tax rates listed in this table pertaining to that taxing unit and providing that information to the county. "The adopted tax rate is the tax rate adopted by the governing body of a taxing unit. "The maintenance and operations rate is the component of the adopted tax rate of a taxing unit that will impose the amount of taxes needed to fund maintenance and operation expenditures of the unit for the following year. "The debt rate is the component of the adopted tax rate of a taxing unit that will impose the amount of taxes needed to fund the unit's debt service for the following year. "The no new taxes [effective] tax rate is the tax rate that would generate the same amount of revenue in the current tax year as was generated by a taxing unit's adopted tax rate in the preceding tax year from property that is taxable in both the current tax year and the preceding tax year. "The no new taxes [effective] maintenance and operations rate is the tax rate that would generate the same amount of revenue for maintenance and operations in the current tax year as was generated by a taxing unit's maintenance and operations rate in the preceding tax year from property that is taxable in both the current tax year and the preceding tax year. "The rollback tax rate is the highest tax rate a taxing unit may adopt before requiring voter approval at an election. An [In the case of a taxing unit other than a school district, the voters by petition may require that a rollback election be held if the unit adopts a tax rate in excess of the unit's rollback tax rate. In the case of a school district, an] election will automatically be held if a taxing unit [the district] wishes to adopt a tax rate in excess of the unit's [district's] rollback tax rate." SECTION 24. Chapter 26, Tax Code, is amended by adding Section 26.17 to read as follows: Sec. 26.17. POSTING OF TAX RATE AND BUDGET INFORMATION ON TAXING UNIT'S WEBSITE. Each taxing unit shall maintain an Internet website. In addition to posting any other information required by this title, each taxing unit shall post on the Internet website maintained by the taxing unit the following information in a format prescribed by the comptroller: (1) the name of and official contact information for each member of the governing body of the taxing unit; (2) the mailing address, e-mail address, and telephone number of the taxing unit; (3) the taxing unit's budget for the preceding two years; (4) the taxing unit's proposed or adopted budget for the current year; (5) the change in the amount of the taxing unit's budget from the preceding year to the current year, by dollar amount and percentage; (6) in the case of a taxing unit other than a school district, the amount of property tax revenue budgeted for maintenance and operations for: (A) the preceding two years; and (B) the current year; (7) in the case of a taxing unit other than a school district, the amount of property tax revenue budgeted for debt service for: (A) the preceding two years; and (B) the current year; (8) the tax rate for maintenance and operations adopted by the taxing unit for the preceding two years; (9) the tax rate for debt service adopted by the taxing unit for the preceding two years; (10) the tax rate for maintenance and operations proposed by the taxing unit for the current year; (11) the tax rate for debt service proposed by the taxing unit for the current year; and (12) the most recent financial audit of the taxing unit. SECTION 25. Sections 31.12(a) and (b), Tax Code, are amended to read as follows: (a) If a refund of a tax provided by Section 11.431(b), 26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or before the 60th day after the date the liability for the refund arises, no interest is due on the amount refunded. If not paid on or before that 60th day, the amount of the tax to be refunded accrues interest at a rate of one percent for each month or part of a month that the refund is unpaid, beginning with the date on which the liability for the refund arises. (b) For purposes of this section, liability for a refund arises: (1) if the refund is required by Section 11.431(b), on the date the chief appraiser notifies the collector for the unit of the approval of the late homestead exemption; (2) if the refund is required by Section 26.08(d-2) [26.07(g)], on the date the results of the election to reduce the tax rate are certified; (3) if the refund is required by Section 26.15(f): (A) for a correction to the tax roll made under Section 26.15(b), on the date the change in the tax roll is certified to the assessor for the taxing unit under Section 25.25; or (B) for a correction to the tax roll made under Section 26.15(c), on the date the change in the tax roll is ordered by the governing body of the taxing unit; (4) if the refund is required by Section 31.11, on the date the auditor for the taxing unit determines that the payment was erroneous or excessive or, if the amount of the refund exceeds the applicable amount specified by Section 31.11(a), on the date the governing body of the unit approves the refund; or (5) if the refund is required by Section 31.111, on the date the collector for the taxing unit determines that the payment was erroneous. SECTION 26. Section 33.08(b), Tax Code, is amended to read as follows: (b) The governing body of the taxing unit or appraisal district, in the manner required by law for official action, may provide that taxes that become delinquent on or after June 1 under Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032, 31.04, or 42.42 incur an additional penalty to defray costs of collection. The amount of the penalty may not exceed the amount of the compensation specified in the applicable contract with an attorney under Section 6.30 to be paid in connection with the collection of the delinquent taxes. SECTION 27. Section 45.105(e), Education Code, is amended to read as follows: (e) The governing body of an independent school district that governs a junior college district under Subchapter B, Chapter 130, in a county with a population of more than two million may dedicate a specific percentage of the local tax levy to the use of the junior college district for facilities and equipment or for the maintenance and operating expenses of the junior college district. To be effective, the dedication must be made by the governing body on or before the date on which the governing body adopts its tax rate for a year. The amount of local tax funds derived from the percentage of the local tax levy dedicated to a junior college district from a tax levy may not exceed the amount that would be levied by five percent of the no new taxes [effective] tax rate for the tax year calculated as provided by Section 26.04, Tax Code, on all property taxable by the school district. All real property purchased with these funds is the property of the school district, but is subject to the exclusive control of the governing body of the junior college district for as long as the junior college district uses the property for educational purposes. SECTION 28. Section 130.016(b), Education Code, is amended to read as follows: (b) If the board of trustees of an independent school district that divests itself of the management, control, and operation of a junior college district under this section or [under] Section 130.017 [of this code] was authorized by [Subsection (e) of] Section 45.105(e) or former Section 20.48(e) [20.48 of this code] to dedicate a portion of its tax levy to the junior college district before the divestment, the junior college district may levy an ad valorem tax from and after the divestment. In the first two years in which the junior college district levies an ad valorem tax, the tax rate adopted by the governing body may not exceed the rate that, if applied to the total taxable value submitted to the governing body under Section 26.04, Tax Code, would impose an amount equal to the amount of taxes of the school district dedicated to the junior college under [Subsection (e) of] Section 45.105(e) or former Section 20.48(e) [20.48 of this code] in the last dedication before the divestment. In subsequent years, the tax rate of the junior college district is subject to Section 26.08 [26.07], Tax Code. SECTION 29. Sections 281.124(d) and (e), Health and Safety Code, are amended to read as follows: (d) If a majority of the votes cast in the election favor the proposition, the tax rate for the specified tax year is the rate approved by the voters, and that rate is not subject to [a rollback election under] Section 26.08 [26.07], Tax Code. The board shall adopt the tax rate as provided by Chapter 26, Tax Code. (e) If the proposition is not approved as provided by Subsection (c), the board may not adopt a tax rate for the district for the specified tax year that exceeds the rate that was not approved, and Section 26.08 [26.07], Tax Code, applies to the adopted rate if that rate exceeds the district's rollback tax rate. SECTION 30. Section 102.007(d), Local Government Code, is amended to read as follows: (d) An adopted budget must contain a cover page that includes: (1) one of the following statements in 18-point or larger type that accurately describes the adopted budget: (A) "This budget will raise more revenue from property taxes than last year's budget by an amount of (insert total dollar amount of increase), which is a (insert percentage increase) percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (B) "This budget will raise less revenue from property taxes than last year's budget by an amount of (insert total dollar amount of decrease), which is a (insert percentage decrease) percent decrease from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; or (C) "This budget will raise the same amount of revenue from property taxes as last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (2) the record vote of each member of the governing body by name voting on the adoption of the budget; (3) the municipal property tax rates for the preceding fiscal year, and each municipal property tax rate that has been adopted or calculated for the current fiscal year, including: (A) the property tax rate; (B) the no new taxes [effective] tax rate; (C) the no new taxes [effective] maintenance and operations tax rate; (D) the rollback tax rate; and (E) the debt rate; and (4) the total amount of municipal debt obligations. SECTION 31. Section 111.008(d), Local Government Code, is amended to read as follows: (d) An adopted budget must contain a cover page that includes: (1) one of the following statements in 18-point or larger type that accurately describes the adopted budget: (A) "This budget will raise more revenue from property taxes than last year's budget by an amount of (insert total dollar amount of increase), which is a (insert percentage increase) percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (B) "This budget will raise less revenue from property taxes than last year's budget by an amount of (insert total dollar amount of decrease), which is a (insert percentage decrease) percent decrease from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; or (C) "This budget will raise the same amount of revenue from property taxes as last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (2) the record vote of each member of the commissioners court by name voting on the adoption of the budget; (3) the county property tax rates for the preceding fiscal year, and each county property tax rate that has been adopted or calculated for the current fiscal year, including: (A) the property tax rate; (B) the no new taxes [effective] tax rate; (C) the no new taxes [effective] maintenance and operations tax rate; (D) the rollback tax rate; and (E) the debt rate; and (4) the total amount of county debt obligations. SECTION 32. Section 111.039(d), Local Government Code, is amended to read as follows: (d) An adopted budget must contain a cover page that includes: (1) one of the following statements in 18-point or larger type that accurately describes the adopted budget: (A) "This budget will raise more revenue from property taxes than last year's budget by an amount of (insert total dollar amount of increase), which is a (insert percentage increase) percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (B) "This budget will raise less revenue from property taxes than last year's budget by an amount of (insert total dollar amount of decrease), which is a (insert percentage decrease) percent decrease from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; or (C) "This budget will raise the same amount of revenue from property taxes as last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (2) the record vote of each member of the commissioners court by name voting on the adoption of the budget; (3) the county property tax rates for the preceding fiscal year, and each county property tax rate that has been adopted or calculated for the current fiscal year, including: (A) the property tax rate; (B) the no new taxes [effective] tax rate; (C) the no new taxes [effective] maintenance and operations tax rate; (D) the rollback tax rate; and (E) the debt rate; and (4) the total amount of county debt obligations. SECTION 33. Section 111.068(c), Local Government Code, is amended to read as follows: (c) An adopted budget must contain a cover page that includes: (1) one of the following statements in 18-point or larger type that accurately describes the adopted budget: (A) "This budget will raise more revenue from property taxes than last year's budget by an amount of (insert total dollar amount of increase), which is a (insert percentage increase) percent increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (B) "This budget will raise less revenue from property taxes than last year's budget by an amount of (insert total dollar amount of decrease), which is a (insert percentage decrease) percent decrease from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; or (C) "This budget will raise the same amount of revenue from property taxes as last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is (insert amount computed by multiplying the proposed tax rate by the value of new property added to the roll)."; (2) the record vote of each member of the commissioners court by name voting on the adoption of the budget; (3) the county property tax rates for the preceding fiscal year, and each county property tax rate that has been adopted or calculated for the current fiscal year, including: (A) the property tax rate; (B) the no new taxes [effective] tax rate; (C) the no new taxes [effective] maintenance and operations tax rate; (D) the rollback tax rate; and (E) the debt rate; and (4) the total amount of county debt obligations. SECTION 34. Sections 140.010(a), (d), and (e), Local Government Code, are amended to read as follows: (a) In this section, "no new taxes ["effective] tax rate" and "rollback tax rate" mean the no new taxes [effective] tax rate and rollback tax rate of a county or municipality, as applicable, as calculated under Chapter 26, Tax Code. (d) A county or municipality that proposes a property tax rate that does not exceed the lower of the no new taxes [effective] tax rate or the rollback tax rate shall provide the following notice: "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) "A tax rate of $______ per $100 valuation has been proposed by the governing body of (insert name of county or municipality). PROPOSED TAX RATE $______ per $100 PRECEDING YEAR'S TAX RATE $______ per $100 NO NEW TAXES [EFFECTIVE] TAX RATE $______ per $100 "The no new taxes [effective] tax rate is the total tax rate needed to raise the same amount of property tax revenue for (insert name of county or municipality) from the same properties in both the (insert preceding tax year) tax year and the (insert current tax year) tax year. "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS: property tax amount = (rate) x (taxable value of your property) / 100 "For assistance or detailed information about tax calculations, please contact: (insert name of county or municipal tax assessor-collector) (insert name of county or municipality) tax assessor-collector (insert address) (insert telephone number) (insert e-mail address) (insert Internet website address[, if applicable])" (e) A county or municipality that proposes a property tax rate that exceeds the lower of the no new taxes [effective] tax rate or the rollback tax rate shall provide the following notice: "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY) "A tax rate of $_____ per $100 valuation has been proposed for adoption by the governing body of (insert name of county or municipality). This rate exceeds the lower of the no new taxes [effective] or rollback tax rate, and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. The governing body of (insert name of county or municipality) proposes to use revenue attributable to the tax rate increase for the purpose of (description of purpose of increase). PROPOSED TAX RATE $______ per $100 PRECEDING YEAR'S TAX RATE $______ per $100 NO NEW TAXES [EFFECTIVE] TAX RATE $______ per $100 ROLLBACK TAX RATE $______ per $100 "The no new taxes [effective] tax rate is the total tax rate needed to raise the same amount of property tax revenue for (insert name of county or municipality) from the same properties in both the (insert preceding tax year) tax year and the (insert current tax year) tax year. "The rollback tax rate is the highest tax rate that (insert name of county or municipality) may adopt without holding [before voters are entitled to petition for] an election to ratify [limit] the rate [that may be approved to the rollback rate]. "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS: property tax amount = (rate) x (taxable value of your property) / 100 "For assistance or detailed information about tax calculations, please contact: (insert name of county or municipal tax assessor-collector) (insert name of county or municipality) tax assessor-collector (insert address) (insert telephone number) (insert e-mail address) (insert Internet website address[, if applicable]) "You are urged to attend and express your views at the following public hearings on the proposed tax rate: First Hearing: (insert date and time) at (insert location of meeting). Second Hearing: (insert date and time) at (insert location of meeting)." SECTION 35. Section 1101.254(f), Special District Local Laws Code, is amended to read as follows: (f) This section does not affect the applicability of [any rights district voters may have to petition for an election under] Section 26.08 [26.07], Tax Code, to the district's tax rate, except that if district voters approve a tax rate increase under this section, [the voters may not petition for an election under] Section 26.08 [26.07], Tax Code, does not apply [as] to the tax rate for that year. SECTION 36. Sections 1122.2522, 3828.157, and 8876.152, Special District Local Laws Code, are amended to read as follows: Sec. 1122.2522. ROLLBACK TAX RATE PROVISIONS APPLICABLE. [(a)] If in any year the board adopts a tax rate that exceeds the rollback tax rate calculated as provided by Chapter 26, Tax Code, [the qualified voters of the district by petition may require that] an election under Section 26.08 of that code must be held to determine whether or not to approve [reduce] the tax rate adopted by the board for that year [to the rollback tax rate]. [(b) To the extent a conflict exists between this section and a provision of the Tax Code, the provision of the Tax Code prevails.] Sec. 3828.157. INAPPLICABILITY OF CERTAIN TAX CODE PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do not apply to a tax imposed under Section 3828.153 or 3828.156. Sec. 8876.152. APPLICABILITY OF CERTAIN TAX PROVISIONS. (a) Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do not apply to a tax imposed by the district. (b) Sections 49.236(a)(1) and (2) and (b) [Section 49.236], Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003, applies] to the district. SECTION 37. Section 49.107(g), Water Code, is amended to read as follows: (g) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do not apply to a tax levied and collected under this section or an ad valorem tax levied and collected for the payment of the interest on and principal of bonds issued by a district. SECTION 38. Section 49.108(f), Water Code, is amended to read as follows: (f) Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do not apply to a tax levied and collected for payments made under a contract approved in accordance with this section. SECTION 39. Section 49.236, Water Code, as added by Chapter 335 (S.B. 392), Acts of the 78th Legislature, Regular Session, 2003, is amended by amending Subsections (a) and (d) and adding Subsection (e) to read as follows: (a) Before the board adopts an ad valorem tax rate for the district for debt service, operation and maintenance purposes, or contract purposes, the board shall give notice of each meeting of the board at which the adoption of a tax rate will be considered. The notice must: (1) contain a statement in substantially the following form: "NOTICE OF PUBLIC HEARING ON TAX RATE "The (name of the district) will hold a public hearing on a proposed tax rate for the tax year (year of tax levy) on (date and time) at (meeting place). Your individual taxes may increase or decrease, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted. "(Names of all board members and, if a vote was taken, an indication of how each voted on the proposed tax rate and an indication of any absences.)"; (2) contain the following information: (A) the district's total adopted tax rate for the preceding year and the proposed tax rate, expressed as an amount per $100; (B) the difference, expressed as an amount per $100 and as a percent increase or decrease, as applicable, in the proposed tax rate compared to the adopted tax rate for the preceding year; (C) the average appraised value of a residence homestead in the district in the preceding year and in the current year; the district's total homestead exemption, other than an exemption available only to disabled persons or persons 65 years of age or older, applicable to that appraised value in each of those years; and the average taxable value of a residence homestead in the district in each of those years, disregarding any homestead exemption available only to disabled persons or persons 65 years of age or older; (D) the amount of tax that would have been imposed by the district in the preceding year on a residence homestead appraised at the average appraised value of a residence homestead in that year, disregarding any homestead exemption available only to disabled persons or persons 65 years of age or older; (E) the amount of tax that would be imposed by the district in the current year on a residence homestead appraised at the average appraised value of a residence homestead in that year, disregarding any homestead exemption available only to disabled persons or persons 65 years of age or older, if the proposed tax rate is adopted; [and] (F) the difference between the amounts of tax calculated under Paragraphs (D) and (E), expressed in dollars and cents and described as the annual percentage increase or decrease, as applicable, in the tax to be imposed by the district on the average residence homestead in the district in the current year if the proposed tax rate is adopted; and (G) if the proposed combined debt service, operation and maintenance, and contract tax rate exceeds the rollback tax rate, a description of the purpose of the proposed tax increase; and (3) contain a statement in substantially the following form: "NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION] "If operation and maintenance taxes on the average residence homestead increase by more than four [eight] percent, [the qualified voters of the district by petition may require that] an election must be held to determine whether to ratify [reduce] the operation and maintenance tax rate [to the rollback tax rate] under Section 49.236(d), Water Code." (d) If the governing body of a district adopts a combined debt service, operation and maintenance, and contract tax rate that exceeds the rollback tax rate, [would impose more than 1.08 times the amount of tax imposed by the district in the preceding year on a residence homestead appraised at the average appraised value of a residence homestead in the district in that year, disregarding any homestead exemption available only to disabled persons or persons 65 years of age or older, the qualified voters of the district by petition may require that] an election must be held to determine whether [or not] to ratify [reduce] the tax rate adopted for the current year [to the rollback tax rate] in accordance with the procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and 26.081], Tax Code. For purposes of Sections 26.08(b)-(d), Tax Code, [26.07(b)-(g)] and this section [subsection], the rollback tax rate is the sum of the following tax rates: (1) the current year's debt service tax rate; (2) the current year's [and] contract tax rate; and (3) [rates plus] the operation and maintenance tax rate that would impose 1.04 [1.08] times the amount of the operation and maintenance tax imposed by the district in the preceding year on a residence homestead appraised at the average appraised value of a residence homestead in the district in that year, disregarding any homestead exemption available only to disabled persons or persons 65 years of age or older. (e) Notwithstanding any other provision of this section, the board may substitute "eight percent" for "four percent" in Subsection (a) and "1.08" for "1.04" in Subsection (d) if any part of the district is located in an area declared a disaster area during the current tax year by the governor or by the president of the United States. SECTION 40. The following provisions are repealed: (1) Section 1063.255, Special District Local Laws Code; (2) Section 26.07, Tax Code; (3) Section 49.236, Water Code, as added by Chapter 248 (H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003; and (4) Section 49.2361, Water Code. SECTION 41. (a) Not later than January 1, 2018, the comptroller shall appoint the members of an advisory group to provide to the comptroller advice and assistance regarding the creation and operation of the property tax database required by Section 5.092, Tax Code, as added by this Act, and related matters. The advisory group is composed of 13 members as follows: (1) one person who is an employee of the office of the lieutenant governor; (2) one person who is an employee of the office of the speaker of the house of representatives; (3) four persons who are county tax assessor-collectors; (4) two persons who are assessors or collectors for taxing units but are not county tax assessor-collectors; (5) two persons who are chief appraisers of appraisal districts; (6) one person who is a financial officer or auditor of a municipality; (7) one person who is a financial officer or auditor of a county; and (8) one person who is a representative of water districts. (b) The advisory group is abolished and this section expires July 1, 2019. SECTION 42. The comptroller shall comply with Sections 5.07(f) and 5.092, Tax Code, as added by this Act, not later than June 1, 2019. SECTION 43. (a) Except as provided by Subsections (b) and (c) of this section, this Act takes effect January 1, 2018. (b) The following provisions take effect September 1, 2017: (1) Section 5.091, Tax Code, as amended by this Act; (2) Section 26.17, Tax Code, as added by this Act; and (3) Section 41 of this Act. (c) The following provisions take effect January 1, 2019: (1) Section 5.07(f), Tax Code, as added by this Act; (2) Section 5.092, Tax Code, as added by this Act; (3) Sections 25.19(b) and (i), Tax Code, as amended by this Act; (4) Sections 26.04(d-1), (d-2), (d-3), (d-4), and (e-2), Tax Code, as added by this Act; (5) Sections 26.04(e-1) and (g), Tax Code, as amended by this Act; (6) Sections 26.05(d-1) and (d-2), Tax Code, as added by this Act; and (7) Section 26.05(e), Tax Code, as amended by this Act.