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  H.B. No. 4456
 
 
 
 
AN ACT
  relating to the calculation of certain ad valorem tax rates of a
  school district.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5.07(f), Tax Code, is amended to read as
  follows:
         (f)  The comptroller shall prescribe tax rate calculation
  forms to be used by the designated officer or employee of each[:
               [(1)]  taxing unit [other than a school district] to
  calculate and submit the no-new-revenue tax rate and the
  voter-approval tax rate for the taxing unit as required by Chapter
  26[; and
               [(2)  school district to:
                     [(A)  calculate and submit the no-new-revenue tax
  rate and the voter-approval tax rate for the district as required by
  Chapter 26; and
                     [(B)  submit 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 as
  required by Chapter 26].
         SECTION 2.  Section 26.012(18), Tax Code, is amended to read
  as follows:
               (18)  "No-new-revenue maintenance and operations rate"
  means a rate expressed in dollars per $100 of taxable value
  calculated as follows:
                     (A)  for a taxing unit other than a school
  district, the rate [and] calculated according to the following
  formula:
         NO-NEW-REVENUE 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)
         ; or
                     (B)  for a school district, the rate calculated as
  provided by Section 44.004(c)(5)(A)(ii)(a), Education Code.
         SECTION 3.  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. 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-revenue 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 rate calculated as provided by Section
  44.004(c)(5)(A)(ii), Education Code, [sum of the no-new-revenue
  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-revenue 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-revenue 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-revenue
  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-REVENUE 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 Internet website of
  the taxing unit:
                     (A)  the following statement: "(Insert name of
  taxing 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-revenue
  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-REVENUE MAINTENANCE AND OPERATIONS
  RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
  ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."
         SECTION 4.  Section 26.17(b), Tax Code, is amended to read as
  follows:
         (b)  The database must include, with respect to each property
  listed on the appraisal roll for the appraisal district:
               (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-revenue tax rate; and
                     (B)  the voter-approval tax rate;
               (6)  for each school district in which the property is
  located:
                     (A)  the tax rate that would 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 voter-approval 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 taxing unit adopted a tax rate equal to:
                     (A)  the no-new-revenue 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
  district adopted a tax rate equal to:
                     (A)  the tax rate that would 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, time, and location of the 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;
               (13)  the date, time, and location of the public
  meeting, if applicable, at which the tax rate will be adopted to be
  held by the governing body of each taxing unit in which the property
  is located; and
               (14)  for each taxing unit in which the property is
  located, an e-mail address at which the taxing unit is capable of
  receiving written comments regarding the proposed tax rate of the
  taxing unit.
         SECTION 5.  The change in law made by this Act applies to an
  ad valorem tax year that begins on or after the effective date of
  this Act.
         SECTION 6.  This Act takes effect January 1, 2024.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4456 was passed by the House on May 9,
  2023, by the following vote:  Yeas 116, Nays 26, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 4456 was passed by the Senate on May
  24, 2023, by the following vote:  Yeas 29, Nays 2.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor