2023 Texas Statutes › Tax Code › Title 1 - Property Tax Code › Subtitle D - Appraisal and Assessment › Chapter 26 - Assessment › Section 26.063. Alternate Provisions for Tax Rate Notice When De Minimis Rate Exceeds Voter-Approval Tax Rate

Sec. 26.063.  ALTERNATE PROVISIONS FOR TAX RATE NOTICE WHEN DE MINIMIS RATE EXCEEDS VOTER-APPROVAL TAX RATE.  (a)  This section applies only to a taxing unit:
(1)  that is:
(A)  a taxing unit other than a special taxing unit; or
(B)  a municipality with a population of less than 30,000, regardless of whether it is a special taxing unit;
(2)  that is required to provide notice under Section 26.06(b-1) or (b-3); and
(3)  for which the de minimis rate exceeds the voter-approval tax rate.
(b)  This subsection applies only to a taxing unit that is required to hold an election under Section 26.07.  In the notice required to be provided by the taxing unit under Section 26.06(b-1) or (b-3), as applicable, the taxing unit shall:
(1)  add the following to the end of the list of rates included in the notice:
"DE MINIMIS RATE          $__________ per $100";
(2)  substitute the following for the definition of "voter-approval tax rate":  "The voter-approval tax rate is the highest tax rate that (name of taxing unit) may adopt without holding an election to seek voter approval of the rate, unless the de minimis rate for (name of taxing unit) exceeds the voter-approval tax rate for (name of taxing unit).";
(3)  add the following definition of "de minimis rate":  "The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate for (name of taxing unit), the rate that will raise $500,000, and the current debt rate for (name of taxing unit)."; and
(4)  substitute the following for the provision that provides notice that an election is required:  "The proposed tax rate is greater than the voter-approval tax rate and the de minimis rate.  If (name of taxing unit) adopts the proposed tax rate, (name of taxing unit) is required to hold an election so that the voters may accept or reject the proposed tax rate.  If a majority of the voters reject the proposed tax rate, the tax rate of the (name of taxing unit) will be the voter-approval tax rate of the (name of taxing unit).  The election will be held on (date of election).  You may contact the (name of office responsible for administering the election) for information about voting locations.  The hours of voting on election day are (voting hours).".
(c)  This subsection applies only to a taxing unit for which the qualified voters of the taxing unit may petition to hold an election under Section 26.075.  In the notice required to be provided by the taxing unit under Section 26.06(b-1) or (b-3), as applicable, the taxing unit shall:
(1)  add the following to the end of the list of rates included in the notice:
"DE MINIMIS RATE          $__________ per $100";
(2)  substitute the following for the definition of "voter-approval tax rate":  "The voter-approval tax rate is the highest tax rate that (name of taxing unit) may adopt without holding an election to seek voter approval of the rate, unless the de minimis rate for (name of taxing unit) exceeds the voter-approval tax rate for (name of taxing unit).";
(3)  add the following definition of "de minimis rate":  "The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate for (name of taxing unit), the rate that will raise $500,000, and the current debt rate for (name of taxing unit)."; and
(4)  substitute the following for the provision that provides notice that an election is required:  "The proposed tax rate is greater than the voter-approval tax rate but not greater than the de minimis rate.  However, the proposed tax rate exceeds the rate that allows voters to petition for an election under Section 26.075, Tax Code.  If (name of taxing unit) adopts the proposed tax rate, the qualified voters of the (name of taxing unit) may petition the (name of taxing unit) to require an election to be held to determine whether to reduce the proposed tax rate.  If a majority of the voters reject the proposed tax rate, the tax rate of the (name of taxing unit) will be the voter-approval tax rate of the (name of taxing unit).".
(d)  This subsection applies only to a taxing unit that is not required to hold an election under Section 26.07 and for which the qualified voters of the taxing unit may not petition to hold an election under Section 26.075.  In the notice required to be provided by the taxing unit under Section 26.06(b-1) or (b-3), as applicable, the taxing unit shall:
(1)  add the following to the end of the list of rates included in the notice:
"DE MINIMIS RATE              $_______________ per $100";
(2)  substitute the following for the definition of "voter-approval tax rate": "The voter-approval tax rate is the highest tax rate that (name of taxing unit) may adopt without holding an election to seek voter approval of the rate, unless the de minimis rate for (name of taxing unit) exceeds the voter-approval tax rate for (name of taxing unit).";
(3)  add the following definition of "de minimis rate": "The de minimis rate is the rate equal to the sum of the no-new-revenue maintenance and operations rate for (name of taxing unit), the rate that will raise $500,000, and the current debt rate for (name of taxing unit)."; and
(4)  substitute the following for the provision that provides notice that an election is required: "The proposed tax rate is greater than the voter-approval tax rate but not greater than the de minimis rate and does not exceed the rate that allows voters to petition for an election under Section 26.075, Tax Code.  If (name of taxing unit) adopts the proposed tax rate, (name of taxing unit) is not required to hold an election so that the voters may accept or reject the proposed tax rate and the qualified voters of the (name of taxing unit) may not petition the (name of taxing unit) to require an election to be held to determine whether to reduce the proposed tax rate.".
Added by Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 49, eff. January 1, 2020.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 28 (H.B. 2429), Sec. 1, eff. May 15, 2021.