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  H.B. No. 2291
 
 
 
 
AN ACT
  relating to the procedure to be used by a taxing unit in adopting an
  ad valorem tax rate.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.05(b), Tax Code, is amended 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.  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 [taxes] 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)."
         SECTION 2.  (a) The change in law made by this Act applies to
  the ad valorem tax rate of a taxing unit beginning with the 2009 tax
  year, except as provided by Subsection (b) of this section.
         (b)  If the governing body of a taxing unit adopted an ad
  valorem tax rate for the taxing unit for the 2009 tax year before
  the effective date of this Act, the change in law made by this Act
  applies to the ad valorem tax rate of that taxing unit beginning
  with the 2010 tax year, and the law in effect when the tax rate was
  adopted applies to the 2009 tax year with respect to that taxing
  unit.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2291 was passed by the House on May 8,
  2009, by the following vote:  Yeas 133, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2291 was passed by the Senate on May
  27, 2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor