By: Bettencourt, et al. S.B. No. 2     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 Texas Property Tax   Reform and Relief Act of 2017.          SECTION 2.  Chapter 5, Tax Code, is amended by adding Section   5.01 to read as follows:          Sec. 5.01.  PROPERTY TAX ADMINISTRATION ADVISORY BOARD.   (a)  The comptroller shall appoint the property tax administration   advisory board to advise the comptroller with respect to the   division or divisions within the office of the comptroller with   primary responsibility for state administration of property   taxation and state oversight of appraisal districts and local tax   offices. The advisory board may make recommendations to the   comptroller regarding improving the effectiveness and efficiency   of the property tax system, best practices, and complaint   resolution procedures.          (b)  The advisory board is composed of at least six members   appointed by the comptroller. The members of the board should   include:                (1)  representatives of property tax payers, appraisal   districts, and school districts; and                (2)  a person who has knowledge or experience in   conducting ratio studies.          (c)  The members of the advisory board serve at the pleasure   of the comptroller.          (d)  Any advice to the comptroller relating to a matter   described by Subsection (a) that is provided by a member of the   advisory board must be provided at a meeting called by the   comptroller.          (e)  Chapter 2110, Government Code, does not apply to the   advisory board.          SECTION 3.  Section 5.05, Tax Code, is amended by adding   Subsection (c-1) to read as follows:          (c-1)  An appraisal district shall appraise property in   accordance with any appraisal manuals prepared and issued by the   comptroller under this section.          SECTION 4.  Sections 5.102(a) and (c), Tax Code, are amended   to read as follows:          (a)  At least once every two years, the comptroller shall   review the governance of each appraisal district, taxpayer   assistance provided, and the operating and appraisal standards,   procedures, and methodology used by each appraisal district, to   determine compliance with generally accepted standards,   procedures, and methodology, including compliance with standards,   procedures, and methodology prescribed by appraisal manuals   prepared and issued by the comptroller.  After consultation with   the property tax administration advisory board [committee created   under Section 403.302, Government Code], the comptroller by rule   may establish procedures and standards for conducting and scoring   the review.          (c)  At the conclusion of the review, the comptroller shall,   in writing, notify the appraisal district concerning its   performance in the review. If the review results in a finding that   an appraisal district is not in compliance with generally accepted   standards, procedures, and methodology, including compliance with   standards, procedures, and methodology prescribed by appraisal   manuals prepared and issued by the comptroller, the comptroller   shall deliver a report that details the comptroller's findings and   recommendations for improvement to:                (1)  the appraisal district's chief appraiser and board   of directors; and                (2)  the superintendent and board of trustees of each   school district participating in the appraisal district.          SECTION 5.  Section 5.13(d), Tax Code, is amended to read as   follows:          (d)  In conducting a general audit, the comptroller shall   consider and report on:                (1)  the extent to which the district complies with   applicable law or generally accepted standards of appraisal or   other relevant practice, including appraisal standards and   practices prescribed by appraisal manuals prepared and issued by   the comptroller;                (2)  the uniformity and level of appraisal of major   kinds of property and the cause of any significant deviations from   ideal uniformity and equality of appraisal of major kinds of   property;                (3)  duplication of effort and efficiency of operation;                (4)  the general efficiency, quality of service, and   qualification of appraisal district personnel; and                (5)  except as otherwise provided by Subsection (b) [of   this section], any other matter included in the request for the   audit.          SECTION 6.  Section 6.035(a-1), Tax Code, is amended to read   as follows:          (a-1)  An individual is ineligible to serve on an appraisal   district board of directors if the individual has engaged in the   business of appraising property for compensation for use in   proceedings under this title or of representing property owners for   compensation in proceedings under this title in the appraisal   district at any time during the preceding three [five] years.          SECTION 7.  Section 6.15, Tax Code, is amended by adding   Subsection (c-1) to read as follows:          (c-1)  Subsections (a) and (b) do not prohibit a member of   the board of directors of an appraisal district from transmitting   to the chief appraiser without comment a complaint by a property   owner or taxing unit about the appraisal of a specific property,   provided that the transmission is in writing.          SECTION 8.  Section 6.41, Tax Code, is amended by amending   Subsections (b) and (d-9) and adding Subsections (b-1), (b-2), and   (d-10) to read as follows:          (b)  Except as provided by Subsection (b-1) or (b-2), an   appraisal review [The] board consists of three members.          (b-1)  An appraisal [However, the] district board of   directors by resolution of a majority of the board's [its] members   may increase the size of the district's appraisal review board to   the number of members the board of directors considers appropriate.          (b-2)  An appraisal district board of directors for a   district established in a county described by Subsection (d-1) by   resolution of a majority of the board's members shall increase the   size of the district's appraisal review board to the number of   members the board of directors considers appropriate to manage the   duties of the appraisal review board, including the duties of each   special panel established under Section 6.425.          (d-9)  In selecting individuals who are to serve as members   of the appraisal review board, the local administrative district   judge shall select an adequate number of qualified individuals to   permit the chairman of the appraisal review board to fill the   positions on each special panel established under Section 6.425.          (d-10)  Upon selection of the individuals who are to serve as   members of the appraisal review board, the local administrative   district judge shall enter an appropriate order designating such   members and setting each member's respective term of office, as   provided elsewhere in this section.          SECTION 9.  Section 6.414(d), Tax Code, is amended to read as   follows:          (d)  An auxiliary board member may hear taxpayer protests   before the appraisal review board.  An auxiliary board member may   not hear taxpayer protests before a special panel established under   Section 6.425 unless the member is eligible to be appointed to the   special panel.  If one or more auxiliary board members sit on a   panel established under Section 6.425 or 41.45 to conduct a protest   hearing, the number of regular appraisal review board members   required by that section to constitute the panel is reduced by the   number of auxiliary board members sitting.  An auxiliary board   member sitting on a panel is considered a regular board member for   all purposes related to the conduct of the hearing.          SECTION 10.  Section 6.42, Tax Code, is amended by adding   Subsection (d) to read as follows:          (d)  The concurrence of a majority of the members of the   appraisal review board or a panel of the board present at a meeting   of the board or panel is sufficient for a recommendation,   determination, decision, or other action by the board or panel, and   the concurrence of more than a majority of the members of the board   or panel may not be required.          SECTION 11.  Subchapter C, Chapter 6, Tax Code, is amended by   adding Section 6.425 to read as follows:          Sec. 6.425.  SPECIAL APPRAISAL REVIEW BOARD PANELS IN   CERTAIN DISTRICTS. (a)  This section applies only to the appraisal   review board for an appraisal district described by Section   6.41(b-2).          (b)  The appraisal review board shall establish a separate   special panel for each of the following classifications of property   to conduct protest hearings under Chapter 41 relating to property   included in that classification:                (1)  commercial real and personal property;                (2)  real and personal property of utilities;                (3)  industrial and manufacturing real and personal   property; and                (4)  multifamily residential real property.          (c)  The chairman of the appraisal review board may establish   additional special panels described by this section to conduct   protest hearings relating to property included in a classification   described by Subsection (b) if the chairman determines that   additional panels are necessary.          (d)  Each special panel described by this section consists of   three members of the appraisal review board appointed by the   chairman of the board.          (e)  To be eligible to be appointed to a special panel   described by this section, a member of the appraisal review board   must:                (1)  hold a juris doctor or equivalent degree;                (2)  hold a master of business administration degree;                (3)  be licensed as a certified public accountant under   Chapter 901, Occupations Code;                (4)  be accredited by the American Society of   Appraisers as an accredited senior appraiser;                (5)  possess an MAI professional designation from the   Appraisal Institute;                (6)  possess a Certified Assessment Evaluator (CAE)   professional designation from the International Association of   Assessing Officers;                (7)  have at least 20 years of experience in property   tax appraisal or consulting; or                (8)  be licensed as a real estate broker or sales agent   under Chapter 1101, Occupations Code.          (f)  Notwithstanding Subsection (e), the chairman of the   appraisal review board may appoint to a special panel described by   this section a member of the appraisal review board who does not   meet the qualifications prescribed by that subsection if:                (1)  the number of persons appointed to the board by the   local administrative district judge who meet those qualifications   is not sufficient to fill the positions on each special panel; and                (2)  the board member being appointed to the panel   holds a bachelor's degree in any field.          SECTION 12.  Section 11.4391(a), Tax Code, is amended to   read as follows:          (a)  The chief appraiser shall accept and approve or deny an   application for an exemption for freeport goods under Section   11.251 after the deadline for filing it has passed if it is filed   not later than June 1 [before the date the appraisal review board   approves the appraisal records].          SECTION 13.  Section 21.09(b), Tax Code, is amended to read   as follows:          (b)  A person claiming an allocation must apply for the   allocation each year the person claims the allocation. A person   claiming an allocation must file a completed allocation application   form before April [May] 1 and must provide the information required   by the form.  If the property was not on the appraisal roll in the   preceding year, the deadline for filing the allocation application   form is extended to the 30th [45th] day after the date of receipt of   the notice of appraised value required by Section 25.19(a)(3). For   good cause shown, the chief appraiser shall extend the deadline for   filing an allocation application form by written order for a period   not to exceed 30 [60] days.          SECTION 14.  Section 22.23, Tax Code, is amended to read as   follows:          Sec. 22.23.  FILING DATE. (a)  Rendition statements and   property reports must be delivered to the chief appraiser after   January 1 and not later than April 1 [15], except as provided by   Section 22.02.          (b)  On written request by the property owner, the chief   appraiser shall extend a deadline for filing a rendition statement   or property report to a date not later than May 1 [15]. The chief   appraiser may further extend the deadline an additional 15 days   upon good cause shown in writing by the property owner.          (c)  Notwithstanding any other provision of this section,   rendition statements and property reports for property regulated by   the Public Utility Commission of Texas, the Railroad Commission of   Texas, the federal Surface Transportation Board, or the Federal   Energy Regulatory Commission must be delivered to the chief   appraiser not later than April 30, except as provided by Section   22.02.  The chief appraiser may extend the filing deadline 15 days   for good cause on written request by the property owner.          SECTION 15.  Section 23.01(b), Tax Code, is amended to read   as follows:          (b)  The market value of property shall be determined by the   application of generally accepted appraisal methods and   techniques, including appraisal methods and techniques prescribed   by appraisal manuals prepared and issued by the comptroller.  If the   appraisal district determines the appraised value of a property   using mass appraisal standards, the mass appraisal standards must   comply with the Uniform Standards of Professional Appraisal   Practice. The same or similar appraisal methods and techniques   shall be used in appraising the same or similar kinds of property.     However, each property shall be appraised based upon the individual   characteristics that affect the property's market value, and all   available evidence that is specific to the value of the property   shall be taken into account in determining the property's market   value.          SECTION 16.  Section 25.19, Tax Code, is amended by amending   Subsections (a) and (g) and adding Subsection (b-3) to read as   follows:          (a)  By April 15 [1] or as soon thereafter as practicable [if   the property is a single-family residence that qualifies for an   exemption under Section 11.13, or by May 1 or as soon thereafter as   practicable in connection with any other property], the chief   appraiser shall deliver a clear and understandable written notice   to a property owner of the appraised value of the property owner's   property if:                (1)  the appraised value of the property is greater   than it was in the preceding year;                (2)  the appraised value of the property is greater   than the value rendered by the property owner;                (3)  the property was not on the appraisal roll in the   preceding year; or                (4)  an exemption or partial exemption approved for the   property for the preceding year was canceled or reduced for the   current year.          (b-3)  This subsection applies only to an appraisal district   described by Section 6.41(b-2).  In addition to the information   required by Subsection (b), the chief appraiser shall state in a   notice of appraised value of property included in a classification   described by Section 6.425(b) that the property owner has the right   to have a protest relating to the property heard by a special panel   of the appraisal review board.          (g)  By April 15 [1] or as soon thereafter as practicable [if   the property is a single-family residence that qualifies for an   exemption under Section 11.13, or by May 1 or as soon thereafter as   practicable in connection with any other property], the chief   appraiser shall deliver a written notice to the owner of each   property not included in a notice required to be delivered under   Subsection (a), if the property was reappraised in the current tax   year, if the ownership of the property changed during the preceding   year, or if the property owner or the agent of a property owner   authorized under Section 1.111 makes a written request for the   notice. The chief appraiser shall separate real from personal   property and include in the notice for each property:                (1)  the appraised value of the property in the   preceding year;                (2)  the appraised value of the property for the   current year and the kind of each partial exemption, if any,   approved for the current year;                (3)  a detailed explanation of the time and procedure   for protesting the value; and                (4)  the date and place the appraisal review board will   begin hearing protests.          SECTION 17.  Section 25.22(a), Tax Code, is amended to read   as follows:          (a)  By May 1 [15] or as soon thereafter as practicable, the   chief appraiser shall submit the completed appraisal records to the   appraisal review board for review and determination of protests.   However, the chief appraiser may not submit the records until the   chief appraiser has delivered the notices required by Subsection   (d) of Section 11.45, Subsection (d) of Section 23.44, Subsection   (d) of Section 23.57, Subsection (d) of Section 23.79, Subsection   (d) of Section 23.85, Subsection (d) of Section 23.95, Subsection   (d) of Section 23.9805, and Section 25.19.          SECTION 18.  Sections 26.01(a) and (e), Tax Code, are   amended to read as follows:          (a)  By July 10 [25], the chief appraiser shall prepare and   certify to the assessor for each taxing unit participating in the   district that part of the appraisal roll for the district that lists   the property taxable by the unit. The part certified to the   assessor is the appraisal roll for the unit. The chief appraiser   shall consult with the assessor for each taxing unit and notify each   unit in writing by April 1 of the form in which the roll will be   provided to each unit.          (e)  Except as provided by Subsection (f), not later than May   15 [April 30], the chief appraiser shall prepare and certify to the   assessor for each county, municipality, and school district   participating in the appraisal district an estimate of the taxable   value of property in that taxing unit. The chief appraiser shall   assist each county, municipality, and school district in   determining values of property in that taxing unit for the taxing   unit's budgetary purposes.          SECTION 19.  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 20.  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 21.  Section 26.04, Tax Code, is amended by amending   Subsections (b), (c), (d), (e), (e-1), (f), (i), and (j) and adding   Subsections (c-1), (d-1), (d-2), (d-3), 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 July 15 [August 1] or as soon   thereafter as practicable. By July 15 [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 1.05 [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 "1.05" 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)  As soon as practicable after the designated officer or   employee calculates the no-new-taxes tax rate and the rollback tax   rate for the taxing unit, the designated officer or employee shall   submit the worksheets used in calculating the rates to the county   assessor-collector for each county in which the unit is located.   The county assessor-collector or an employee designated by the   county assessor-collector shall determine whether the values used   in the calculation of those tax rates are the same as the values   shown in the unit's appraisal roll and the tax rates have otherwise   been calculated correctly. If the county assessor-collector or   designated employee makes such a determination, the county   assessor-collector shall:                (1)  execute a written certification to that effect,   attach the certification to each worksheet, and submit the   worksheets to the governing body of the unit; and                (2)  notify the unit's designated officer or employee   of the submission of the worksheets with the attached   certifications to the governing body.          (d-2)  The designated officer or employee of the taxing unit   may not submit the no-new-taxes tax rate and the rollback tax rate   to the governing body of the unit and the governing body of the unit   may not adopt a tax rate until the county assessor-collector for   each county in which the unit is located submits to the governing   body of the unit the worksheets used to calculate each tax rate with   the certification described by Subsection (d-1) attached.          (d-3)  The comptroller shall adopt rules governing the form   of the certification described by Subsection (d-1) and the manner   in which the worksheets with the attached certifications are   required to be submitted to the governing body of the taxing unit.          (e)  By July 22 [August 7] or as soon thereafter as   practicable, the designated officer or employee shall submit the   rates to the governing body. By July 27, 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-1) and (d-2) and the notice requirements imposed by   Subsections (e)(1)-(6) do not apply to a school district.          (f)  If as a result of consolidation of taxing units a taxing   unit includes territory that was in two or more taxing units in the   preceding year, the amount of taxes imposed in each in the preceding   year is combined for purposes of calculating the no-new-taxes   [effective] and rollback tax rates under this section.          (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 22.  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 1.05 [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 1.05 [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 1.05 [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 "1.05" 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 23.  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 24.  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 25.  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 26.  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 27.  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 28.  Section 26.05, Tax Code, is amended by amending   Subsections (a), (b), (c), (d), and (g) and adding Subsection (e-1)   to read as follows:          (a)  The governing body of each taxing unit[, before the   later of September 30 or the 60th day after the date the certified   appraisal roll is received by the taxing unit,] shall adopt a tax   rate for the current tax year and shall notify the assessor for the   unit of the rate adopted.  The governing body must adopt a tax rate   before the later of September 30 or the 60th day after the date the   certified appraisal roll is received by the taxing unit, except   that the governing body must adopt a tax rate that exceeds the   rollback tax rate before August 15. The tax rate consists of two   components, each of which must be approved separately.  The   components are:                (1)  for a taxing unit other than a school district, the   rate that, if applied to the total taxable value, will impose the   total amount published under Section 26.04(e)(3)(C), less any   amount of additional sales and use tax revenue that will be used to   pay debt service, or, for a school district, the rate calculated   under Section 44.004(c)(5)(A)(ii)(b), Education Code; and                (2)  the rate that, if applied to the total taxable   value, will impose the amount of taxes needed to fund maintenance   and operation expenditures of the unit for the next year.          (b)  A taxing unit may not impose property taxes in any year   until the governing body has adopted a tax rate for that year, and   the annual tax rate must be set by ordinance, resolution, or order,   depending on the method prescribed by law for adoption of a law by   the governing body. The vote on the ordinance, resolution, or order   setting the tax rate must be separate from the vote adopting the   budget. 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 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.          (e-1)  The governing body of a taxing unit that imposes an   additional sales and use tax may not adopt the component of the tax   rate of the unit described by Subsection (a)(1) of this section   until the chief financial officer or the auditor for the unit   submits to the governing body of the unit a written certification   that the amount of additional sales and use tax revenue that will be   used to pay debt service has been deducted from the total amount   published under Section 26.04(e)(3)(C) as required by Subsection   (a)(1) of this section. The comptroller shall adopt rules   governing the form of the certification required by this subsection   and the manner in which it is required to be submitted.          (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 29.  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 is a tax increase and 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 30.  Section 26.06, Tax Code, is amended by amending   Subsections (b), (d), and (e) and adding Subsections (b-1), (b-2),   (b-3), and (b-4) 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 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 effective tax rate for this year of $____   (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."]          (b-1)  If the proposed tax rate exceeds the no-new-taxes tax   rate and the rollback tax rate of the taxing unit, the notice must   contain a statement in the following form:   "NOTICE OF PUBLIC HEARING ON TAX INCREASE          "PROPOSED TAX RATE      $__________per $100          "NO-NEW-TAXES RATE      $__________per $100          "ROLLBACK TAX RATE      $__________per $100          "The no-new-taxes rate is the tax rate for the (current tax   year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The rollback tax rate is the highest tax rate that (name of   taxing unit) may adopt without holding an election to ratify the   rate.          "The proposed tax rate is greater than the no-new-taxes rate.   This means that (name of taxing unit) is proposing to increase   property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "A second public hearing will be held on (date and time) at   (meeting place).          "The proposed tax rate is also greater than the rollback tax   rate. If (name of taxing unit) adopts the proposed tax rate, (name   of taxing unit) is required to hold an election so that voters may   accept or reject the proposed tax rate. If a majority of voters   reject the proposed tax rate, the (name of taxing unit) will be   required to adopt a new tax rate that is not greater than the   rollback tax rate. 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).          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(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.)"          (b-2)  If the proposed tax rate exceeds the no-new-taxes tax   rate but does not exceed the rollback tax rate of the taxing unit,   the notice must contain a statement in the following form:   "NOTICE OF PUBLIC HEARING ON TAX INCREASE          "PROPOSED TAX RATE      $__________per $100          "NO-NEW-TAXES RATE      $__________per $100          "ROLLBACK TAX RATE      $__________per $100          "The no-new-taxes rate is the tax rate for the (current tax   year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The rollback tax rate is the highest tax rate that (name of   taxing unit) may adopt without holding an election to ratify the   rate.          "The proposed tax rate is greater than the no-new-taxes rate.   This means that (name of taxing unit) is proposing to increase   property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "A second public hearing will be held on (date and time) at   (meeting place).          "The proposed tax rate is not greater than the rollback tax   rate. As a result, (name of taxing unit) is not required to hold an   election at which voters may accept or reject the proposed tax rate.     However, you may express your support for or opposition to the   proposed tax rate by contacting the members of the (name of   governing body) of (name of taxing unit) at their offices or by   attending one of the public hearings mentioned above.          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(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.)"          (b-3)  If the proposed tax rate does not exceed the   no-new-taxes tax rate but exceeds the rollback tax rate of the   taxing unit, the notice must contain a statement in the following   form:   "NOTICE OF PUBLIC HEARING ON TAX INCREASE          "PROPOSED TAX RATE      $__________per $100          "NO-NEW-TAXES RATE      $__________per $100          "ROLLBACK TAX RATE      $__________per $100          "The no-new-taxes rate is the tax rate for the (current tax   year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The rollback tax rate is the highest tax rate that (name of   taxing unit) may adopt without holding an election to ratify the   rate.          "The proposed tax rate is not greater than the no-new-taxes   rate. This means that (name of taxing unit) is not proposing to   increase property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "A second public hearing will be held on (date and time) at   (meeting place).          "The proposed tax rate is greater than the rollback tax rate.   If (name of taxing unit) adopts the proposed tax rate, (name of   taxing unit) is required to hold an election so that voters may   accept or reject the proposed tax rate. If a majority of voters   reject the proposed tax rate, the (name of taxing unit) will be   required to adopt a new tax rate that is not greater than the   rollback tax rate. 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).          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(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.)"          (b-4)  In addition to including the information described by   Subsection (b-1), (b-2), or (b-3), as applicable, the notice must   include the information described by Section 26.062.          (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 seventh [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 seventh [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 31.  Chapter 26, Tax Code, is amended by adding   Sections 26.061 and 26.062 to read as follows:          Sec. 26.061.  NOTICE OF MEETING TO VOTE ON PROPOSED TAX RATE   THAT DOES NOT EXCEED LOWER OF NO-NEW-TAXES OR ROLLBACK TAX RATE.   (a)  This section applies only to the governing body of a taxing   unit other than a school district that proposes to adopt a tax rate   that does not exceed the lower of the no-new-taxes tax rate or the   rollback tax rate calculated as provided by this chapter.          (b)  The notice of the meeting at which the governing body of   the taxing unit will vote on the proposed tax rate must contain a   statement in the following form:   "NOTICE OF MEETING TO VOTE ON TAX RATE          "PROPOSED TAX RATE      $__________per $100          "NO-NEW-TAXES RATE      $__________per $100          "ROLLBACK TAX RATE      $__________per $100          "The no-new-taxes rate is the tax rate for the (current tax   year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The rollback tax rate is the highest tax rate that (name of   taxing unit) may adopt without holding an election to ratify the   rate.          "The proposed tax rate is not greater than the no-new-taxes   rate. This means that (name of taxing unit) is not proposing to   increase property taxes for the (current tax year) tax year.          "A public meeting to vote on the proposed tax rate will be   held on (date and time) at (meeting place).          "The proposed tax rate is also not greater than the rollback   tax rate. As a result, (name of taxing unit) is not required to hold   an election at which voters may accept or reject the proposed tax   rate.  However, you may express your support for or opposition to   the proposed tax rate by contacting the members of the (name of   governing body) of (name of taxing unit) at their offices or by   attending the public meeting mentioned above.          "Your taxes owed under any of the above rates can be   calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(Names of all members of the governing body, showing how   each voted on the proposed tax rate or, if one or more were absent,   indicating the absences.)"          (c)  In addition to including the information described by   Subsection (b), the notice must include the information described   by Section 26.062.          Sec. 26.062.  ADDITIONAL INFORMATION TO BE INCLUDED IN TAX   RATE NOTICE. (a)  In addition to the information described by   Section 26.06(b-1), (b-2), or (b-3) or 26.061, as applicable, a   notice required by that provision must include at the end of the   notice:                (1)  a statement in the following form:          "The following table compares the taxes imposed on the   average residence homestead by (name of taxing unit) last year to   the taxes proposed to be imposed on the average residence homestead   by (name of taxing unit) this year:";                (2)  a table in the form required by this section   following the statement described by Subdivision (1); and                (3)  a statement in the following form following the   table:                      (A)  if the tax assessor for the taxing unit   maintains an Internet website:  "For assistance with tax   calculations, please contact the tax assessor for (name of taxing   unit) at (telephone number) or (e-mail address), or visit (Internet   website address) for more information."; or                      (B)  if the tax assessor for the taxing unit does   not maintain an Internet website:  "For assistance with tax   calculations, please contact the tax assessor for (name of taxing   unit) at (telephone number) or (e-mail address)."          (b)  The table must contain five rows and four columns.          (c)  The first row must appear as follows:                (1)  the first column of the first row must be left   blank;                (2)  the second column of the first row must state the   year corresponding to the preceding tax year;                (3)  the third column of the first row must state the   year corresponding to the current tax year; and                (4)  the fourth column of the first row must be entitled   "Change".          (d)  The second row must appear as follows:                (1)  the first column of the second row must be entitled   "Total tax rate (per $100 of value)";                (2)  the second column of the second row must state the   adopted tax rate for the preceding tax year;                (3)  the third column of the second row must state the   proposed tax rate for the current tax year; and                (4)  the fourth column of the second row must state the   nominal and percentage difference between the adopted tax rate for   the preceding tax year and the proposed tax rate for the current tax   year as follows:  "(increase or decrease, as applicable) of   (nominal difference between tax rate stated in second column of   second row and tax rate stated in third column of second row) per   $100, or (percentage difference between tax rate stated in second   column of second row and tax rate stated in third column of second   row)%".          (e)  The third row must appear as follows:                (1)  the first column of the third row must be entitled   "Average homestead taxable value";                (2)  the second column of the third row must state the   average taxable value of a residence homestead in the taxing unit   for the preceding tax year;                (3)  the third column of the third row must state the   average taxable value of a residence homestead in the taxing unit   for the current tax year; and                (4)  the fourth column of the third row must state the   percentage difference between the average taxable value of a   residence homestead in the taxing unit for the preceding tax year   and the average taxable value of a residence homestead in the taxing   unit for the current tax year as follows:  "(increase or decrease,   as applicable) of (percentage difference between amount stated in   second column of third row and amount stated in third column of   third row)%".          (f)  The fourth row must appear as follows:                (1)  the first column of the fourth row must be entitled   "Tax on average homestead";                (2)  the second column of the fourth row must state the   amount of taxes imposed by the taxing unit in the preceding tax year   on a residence homestead with a taxable value equal to the average   taxable value of a residence homestead in the taxing unit in the   preceding tax year;                (3)  the third column of the fourth row must state the   amount of taxes that would be imposed by the taxing unit in the   current tax year on a residence homestead with a taxable value equal   to the average taxable value of a residence homestead in the taxing   unit in the current tax year if the taxing unit adopted the proposed   tax rate; and                (4)  the fourth column of the fourth row must state the   nominal and percentage difference between the amount of taxes   imposed by the taxing unit in the preceding tax year on a residence   homestead with a taxable value equal to the average taxable value of   a residence homestead in the taxing unit in the preceding tax year   and the amount of taxes that would be imposed by the taxing unit in   the current tax year on a residence homestead with a taxable value   equal to the average taxable value of a residence homestead in the   taxing unit in the current tax year if the taxing unit adopted the   proposed tax rate, as follows:  "(increase or decrease, as   applicable) of (nominal difference between amount stated in second   column of fourth row and amount stated in third column of fourth   row), or (percentage difference between amount stated in second   column of fourth row and amount stated in third column of fourth   row)%".          (g)  The fifth row must appear as follows:                (1)  the first column of the fifth row must be entitled   "Total tax levy on all properties";                (2)  the second column of the fifth row must state the   amount equal to last year's levy;                (3)  the third column of the fifth row must state the   amount computed by multiplying the proposed tax rate by the current   total value and dividing the product by 100; and                (4)  the fourth column of the fifth row must state the   nominal and percentage difference between the total amount of taxes   imposed by the taxing unit in the preceding tax year and the amount   that would be imposed by the taxing unit in the current tax year if   the taxing unit adopted the proposed tax rate, as follows:     "(increase or decrease, as applicable) of (nominal difference   between amount stated in second column of fifth row and amount   stated in third column of fifth row), or (percentage difference   between amount stated in second column of fifth row and amount   stated in third column of fifth row)%".          (h)  In calculating the average taxable value of a residence   homestead in the taxing unit for the preceding tax year and the   current tax year for purposes of Subsections (e) and (f), any   residence homestead exemption available only to disabled persons,   persons 65 years of age or older, or their surviving spouses must be   disregarded.          SECTION 32.  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 33.  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 the uniform election date   prescribed by [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, that occurs in November of the applicable tax year. The order   calling the election may not be issued later than August 15 [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 tax [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 34.  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 35.  The heading to Section 26.16, Tax Code, is   amended to read as follows:          Sec. 26.16.  POSTING OF TAX-RELATED INFORMATION [TAX RATES]   ON COUNTY'S INTERNET WEBSITE.          SECTION 36.  Section 26.16, Tax Code, is amended by amending   Subsections (a) and (d) and adding Subsections (a-1), (d-1), and   (d-2) to read as follows:          (a)  Each county shall maintain an Internet website.  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.          (a-1)  For purposes of Subsection (a), a reference to the   no-new-taxes tax rate or the no-new-taxes maintenance and   operations rate includes the equivalent effective tax rate or   effective maintenance and operations rate for a preceding year.     This subsection expires January 1, 2024.          (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."          (d-1)  In addition to posting the information described by   Subsection (a), the county assessor-collector shall post on the   Internet website of the county for each taxing unit all or part of   the territory of which is located in the county:                (1)  the worksheets used by the designated officer or   employee of each taxing unit to calculate the no-new-taxes and   rollback tax rates of the unit for the most recent five tax years   beginning with the 2018 tax year, as certified by the county   assessor-collector under Section 26.04(d-1); and                (2)  the name and official contact information for each   member of the governing body of the taxing unit.          (d-2)  Not later than August 1, the county   assessor-collector shall post on the website the worksheets   described by Subsection (d-1)(1) for the current tax year.          SECTION 37.  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 38.  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 39.  Section 41.03(a), Tax Code, is amended to read   as follows:          (a)  A taxing unit is entitled to challenge before the   appraisal review board:                (1)  [the level of appraisals of any category of   property in the district or in any territory in the district, but   not the appraised value of a single taxpayer's property;                [(2)]  an exclusion of property from the appraisal   records;                (2) [(3)]  a grant in whole or in part of a partial   exemption;                (3) [(4)]  a determination that land qualifies for   appraisal as provided by Subchapter C, D, E, or H, Chapter 23; or                (4) [(5)]  failure to identify the taxing unit as one   in which a particular property is taxable.          SECTION 40.  Section 41.11(a), Tax Code, is amended to read   as follows:          (a)  Not later than the date the appraisal review board   approves the appraisal records as provided by Section 41.12, the   secretary of the board shall deliver written notice to a property   owner of any change in the records that is ordered by the board as   provided by this subchapter and that will result in an increase in   the tax liability of the property owner. An owner who receives a   notice as provided by this section shall be entitled to protest such   action as provided by Section 41.44(a)(2) [41.44(a)(3)].          SECTION 41.  Section 41.12(a), Tax Code, is amended to read   as follows:          (a)  By July 5 [20], the appraisal review board shall:                (1)  hear and determine all or substantially all timely   filed protests;                (2)  determine all timely filed challenges;                (3)  submit a list of its approved changes in the   records to the chief appraiser; and                (4)  approve the records.          SECTION 42.  Sections 41.44(a), (c), and (d), Tax Code, are   amended to read as follows:          (a)  Except as provided by Subsections (b), [(b-1),] (c),   (c-1), and (c-2), to be entitled to a hearing and determination of a   protest, the property owner initiating the protest must file a   written notice of the protest with the appraisal review board   having authority to hear the matter protested:                (1)  not later than the later of:                      (A)  [before] May 15; [1] or                      (B)  [not later than] the 30th day after the date   that notice to the property owner was delivered to the property   owner as provided by Section 25.19[, if the property is a   single-family residence that qualifies for an exemption under   Section 11.13, whichever is later];                (2)  [before June 1 or not later than the 30th day after   the date that notice was delivered to the property owner as provided   by Section 25.19 in connection with any other property, whichever   is later;                [(3)]  in the case of a protest of a change in the   appraisal records ordered as provided by Subchapter A of this   chapter or by Chapter 25, not later than the 30th day after the date   notice of the change is delivered to the property owner;                (3) [(4)]  in the case of a determination that a change   in the use of land appraised under Subchapter C, D, E, or H, Chapter   23, has occurred, not later than the 30th day after the date the   notice of the determination is delivered to the property owner; or                (4) [(5)]  in the case of a determination of   eligibility for a refund under Section 23.1243, not later than the   30th day after the date the notice of the determination is delivered   to the property owner.          (c)  A property owner who files notice of a protest   authorized by Section 41.411 is entitled to a hearing and   determination of the protest if the property owner files the notice   prior to the date the taxes on the property to which the notice   applies become delinquent. An owner of land who files a notice of   protest under Subsection (a)(3) [(a)(4)] is entitled to a hearing   and determination of the protest without regard to whether the   appraisal records are approved.          (d)  A notice of protest is sufficient if it identifies the   protesting property owner, including a person claiming an ownership   interest in the property even if that person is not listed on the   appraisal records as an owner of the property, identifies the   property that is the subject of the protest, and indicates apparent   dissatisfaction with some determination of the appraisal office.   The notice need not be on an official form, but the comptroller   shall prescribe a form that provides for more detail about the   nature of the protest. The form must permit a property owner to   include each property in the appraisal district that is the subject   of a protest.  The form must permit a property owner to request that   the protest be heard by a special panel established under Section   6.425 if the protest will be determined by an appraisal review board   to which that section applies and the property is included in a   classification described by that section.  The comptroller, each   appraisal office, and each appraisal review board shall make the   forms readily available and deliver one to a property owner on   request.          SECTION 43.  Section 41.45, Tax Code, is amended by amending   Subsection (d) and adding Subsections (d-1), (d-2), and (d-3) to   read as follows:          (d)  This subsection does not apply to a special panel   established under Section 6.425. An appraisal review board   consisting of more than three members may sit in panels of not fewer   than three members to conduct protest hearings.  [However, the   determination of a protest heard by a panel must be made by the   board.] If the recommendation of a panel is not accepted by the   board, the board may refer the matter for rehearing to a panel   composed of members who did not hear the original hearing or, if   there are not at least three members who did not hear the original   protest, the board may determine the protest.  [Before determining   a protest or conducting a rehearing before a new panel or the board,   the board shall deliver notice of the hearing or meeting to   determine the protest in accordance with the provisions of this   subchapter.]          (d-1)  An appraisal review board to which Section 6.425   applies shall sit in special panels established under that section   to conduct protest hearings.  A special panel may conduct a protest   hearing relating to property only if the property is included in the   classification for which the panel was established and the property   owner has requested that the panel conduct the hearing.  The board   may rehear a protest heard by a special panel if the board elects   not to accept the recommendation of the panel.          (d-2)  The determination of a protest heard by a panel under   Subsection (d) or (d-1) must be made by the board.          (d-3)  The board must deliver notice of a hearing or meeting   to determine a protest heard by a panel, or to rehear a protest,   under Subsection (d) or (d-1) in accordance with the provisions of   this subchapter.          SECTION 44.  Section 41.66, Tax Code, is amended by amending   Subsection (k) and adding Subsection (k-1) to read as follows:          (k)  This subsection does not apply to a special panel   established under Section 6.425. If an appraisal review board sits   in panels to conduct protest hearings, protests shall be randomly   assigned to panels, except that the board may consider the type of   property subject to the protest or the ground of the protest for the   purpose of using the expertise of a particular panel in hearing   protests regarding particular types of property or based on   particular grounds. If a protest is scheduled to be heard by a   particular panel, the protest may not be reassigned to another   panel without the consent of the property owner or designated   agent. If the appraisal review board has cause to reassign a   protest to another panel, a property owner or designated agent may   agree to reassignment of the protest or may request that the hearing   on the protest be postponed. The board shall postpone the hearing   on that request. A change of members of a panel because of a   conflict of interest, illness, or inability to continue   participating in hearings for the remainder of the day does not   constitute reassignment of a protest to another panel.          (k-1)  On the request of a property owner, an appraisal   review board to which Section 6.425 applies shall assign a protest   relating to property included in a classification described by that   section to the special panel established to conduct protest   hearings relating to property included in that classification.  If   the board has established more than one special panel to conduct   protest hearings relating to property included in a particular   classification, protests relating to property included in that   classification shall be randomly assigned to those special panels.     If a protest is scheduled to be heard by a particular special panel,   the protest may not be reassigned to another special panel without   the consent of the property owner or designated agent.  If the board   has cause to reassign a protest to another special panel, a property   owner or designated agent may agree to reassignment of the protest   or may request that the hearing on the protest be postponed.  The   board shall postpone the hearing on that request.  A change of   members of a special panel because of a conflict of interest,   illness, or inability to continue participating in hearings for the   remainder of the day does not constitute reassignment of a protest   to another special panel.          SECTION 45.  Section 41.71, Tax Code, is amended to read as   follows:          Sec. 41.71.  EVENING AND WEEKEND HEARINGS. (a)  An   appraisal review board by rule shall provide for hearings on   protests [in the evening or] on a Saturday or after 5 p.m. on a   weekday [Sunday].          (b)  The board may not schedule:                (1)  the first hearing on a protest held on a weekday   evening to begin after 7 p.m.; or                (2)  a hearing on a protest on a Sunday.          SECTION 46.  Section 41A.01, Tax Code, is amended to read as   follows:          Sec. 41A.01.  RIGHT OF APPEAL BY PROPERTY OWNER. As an   alternative to filing an appeal under Section 42.01, a property   owner is entitled to appeal through binding arbitration under this   chapter an appraisal review board order determining a protest filed   under Section 41.41(a)(1) or (2) concerning the appraised or market   value of property if:                (1)  the property qualifies as the owner's residence   homestead under Section 11.13; or                (2)  the appraised or market value, as applicable, of   the property as determined by the order is $5 [$3] million or less.          SECTION 47.  Section 41A.03(a), Tax Code, is amended to read   as follows:          (a)  To appeal an appraisal review board order under this   chapter, a property owner must file with the appraisal district not   later than the 45th day after the date the property owner receives   notice of the order:                (1)  a completed request for binding arbitration under   this chapter in the form prescribed by Section 41A.04; and                (2)  an arbitration deposit made payable to the   comptroller in the amount of:                      (A)  $450, if the property qualifies as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is $500,000 or less,   as determined by the order;                      (B)  $500, if the property qualifies as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is more than   $500,000, as determined by the order;                      (C)  $500, if the property does not qualify as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is $1 million or   less, as determined by the order;                      (D)  $800, if the property does not qualify as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is more than $1   million but not more than $2 million, as determined by the order;   [or]                      (E)  $1,050, if the property does not qualify as   the owner's residence homestead under Section 11.13 and the   appraised or market value, as applicable, of the property is more   than $2 million but not more than $3 million, as determined by the   order; or                      (F)  $1,250, if the property does not qualify as   the owner's residence homestead under Section 11.13 and the   appraised or market value, as applicable, of the property is more   than $3 million but not more than $5 million, as determined by the   order.          SECTION 48.  Section 41A.06(b), Tax Code, is amended to read   as follows:          (b)  To initially qualify to serve as an arbitrator under   this chapter, a person must:                (1)  meet the following requirements, as applicable:                      (A)  be licensed as an attorney in this state; or                      (B)  have:                            (i)  completed at least 30 hours of training   in arbitration and alternative dispute resolution procedures from a   university, college, or legal or real estate trade association; and                            (ii)  been licensed or certified   continuously during the five years preceding the date the person   agrees to serve as an arbitrator as:                                  (a)  a real estate broker or sales   agent [salesperson] under Chapter 1101, Occupations Code;                                  (b)  a real estate appraiser under   Chapter 1103, Occupations Code; or                                  (c)  a certified public accountant   under Chapter 901, Occupations Code; and                (2)  agree to conduct an arbitration for a fee that is   not more than:                      (A)  $400, if the property qualifies as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is $500,000 or less,   as determined by the order;                      (B)  $450, if the property qualifies as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is more than   $500,000, as determined by the order;                      (C)  $450, if the property does not qualify as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is $1 million or   less, as determined by the order;                      (D)  $750, if the property does not qualify as the   owner's residence homestead under Section 11.13 and the appraised   or market value, as applicable, of the property is more than $1   million but not more than $2 million, as determined by the order;   [or]                      (E)  $1,000, if the property does not qualify as   the owner's residence homestead under Section 11.13 and the   appraised or market value, as applicable, of the property is more   than $2 million but not more than $3 million, as determined by the   order; or                      (F)  $1,200, if the property does not qualify as   the owner's residence homestead under Section 11.13 and the   appraised or market value, as applicable, of the property is more   than $3 million but not more than $5 million, as determined by the   order.          SECTION 49.  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 50.  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 under 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 51.  Section 403.302(o), Government Code, is amended   to read as follows:          (o)  The comptroller shall adopt rules governing the conduct   of the study after consultation with the comptroller's property tax   administration advisory board [Comptroller's Property Value Study   Advisory Committee].          SECTION 52.  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 53.  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 54.  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 55.  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 56.  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 57.  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 58.  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, 26.061, 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 59.  Section 49.107(g), Water Code, is amended to   read as follows:          (g)  Sections 26.04, 26.05, 26.061, 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 60.  Section 49.108(f), Water Code, is amended to   read as follows:          (f)  Sections 26.04, 26.05, 26.061, 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 61.  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   Subsections (e), (f), (g), (h), (i), (j), (k), and (l) 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 requires or   authorizes an election in the district to ratify the tax rate, a   description of the purpose of the proposed tax increase; and                (3)  contain a statement in substantially the following   form, as applicable:                      (A)  if there are not any new improvements in the   district in the current tax year:   "NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]          "If taxes on the average residence homestead increase by more   than five [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.";   or                      (B)  if there are any new improvements in the   district in the current tax year:   "NOTICE OF TAXPAYERS' RIGHT TO ROLLBACK ELECTION          "If taxes on the average residence homestead increase by more   than five percent, the qualified voters of the district by petition   may require that an election be held to determine whether to ratify   the tax rate under Section 49.236(e), Water Code."          (d)  This subsection applies to a district only if there are   not any new improvements in the district in the current tax year.   If the board [governing body] of the [a] district adopts a combined   debt service, operation and maintenance, and contract tax rate that   would impose more than 1.05 [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-2) [26.07(b)-(g) and 26.081], Tax Code.          (e)  This subsection and Subsections (f)-(i) apply to a   district only if there are any new improvements in the district in   the current tax year. If the board of the district adopts a   combined debt service, operation and maintenance, and contract tax   rate that would impose more than 1.05 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 be held to determine whether to ratify the   tax rate adopted for the current year in accordance with the   procedures provided by Subsections (f)-(i) of this section and   Section 26.081, Tax Code.          (f)  A petition is valid only if:                (1)  it states that it is intended to require an   election in the district on the question of ratifying the tax rate   adopted for the current year;                (2)  it is signed by a number of registered voters of   the district equal to at least:                      (A)  seven percent of the number of registered   voters of the district according to the most recent official list of   registered voters if the tax rate adopted for the current tax year   would impose taxes for operation and maintenance in an amount of at   least $5 million; or                      (B)  10 percent of the number of registered voters   of the district according to the most recent official list of   registered voters if the tax rate adopted for the current tax year   would impose taxes for operation and maintenance in an amount of   less than $5 million; and                (3)  it is submitted to the board on or before the 90th   day after the date on which the board adopted the tax rate for the   current year.          (g)  Not later than the 20th day after the day a petition is   submitted, the board shall determine whether or not the petition is   valid and pass a resolution stating its finding. If the board fails   to act within the time allowed, the petition is treated as if it had   been found valid.          (h)  If the board finds that the petition is valid (or fails   to act within the time allowed), it shall order that an election be   held in the district on a date not less than 30 or more than 90 days   after the last day on which it could have acted to approve or   disapprove the petition. A state law requiring local elections to   be held on a specified date does not apply to the election unless a   specified date 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 district) for the current year,   a rate that is $____ higher per $100 valuation than the district's   rollback tax rate, 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.          (i)  Sections 26.08(c), (d), (d-1), and (d-2), Tax Code,   apply to an election under Subsection (e) of this section in the   same manner as those subsections apply to an election under Section   26.08, Tax Code.          (j)  For purposes of an election under Subsection (d) or (e),   as applicable [Sections 26.07(b)-(g) and this subsection], the   rollback tax rate of a district 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 1.05 [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.          (k)  Notwithstanding any other provision of this section,   the board may substitute "eight percent" for "five percent" in   Subsection (a) and "1.08" for "1.05" in Subsection (d) or (e), as   applicable, and Subsection (j) 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.          (l)  In this section, "improvement" has the meaning assigned   by Section 1.04, Tax Code.          SECTION 62.  The following provisions are repealed:                (1)  Sections 403.302(m-1) and (n), Government Code;                (2)  Section 140.010, Local Government Code;                (3)  Section 1063.255, Special District Local Laws   Code;                (4)  Section 26.07, Tax Code;                (5)  Section 41.44(b-1), Tax Code;                (6)  Section 49.236, Water Code, as added by Chapter   248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,   2003; and                (7)  Section 49.2361, Water Code.          SECTION 63.  The changes in law made by this Act relating to   the ad valorem tax rate of a taxing unit apply beginning with the   2018 tax year.          SECTION 64.  Sections 5.05, 5.102, 5.13, and 23.01, Tax   Code, as amended by this Act, apply only to the appraisal of   property for ad valorem tax purposes for a tax year beginning on or   after January 1, 2018.          SECTION 65.  Section 6.41(d-9), Tax Code, as amended by this   Act, and Section 6.41(d-10), Tax Code, as added by this Act, apply   only to the appointment of appraisal review board members to terms   beginning on or after January 1, 2019.          SECTION 66.  Section 6.42(d), Tax Code, as added by this Act,   applies only to a recommendation, determination, decision, or other   action by an appraisal review board or a panel of such a board on or   after January 1, 2018. A recommendation, determination, decision,   or other action by an appraisal review board or a panel of such a   board before January 1, 2018, is governed by the law as it existed   immediately before that date, and that law is continued in effect   for that purpose.          SECTION 67.  Sections 11.4391(a), 21.09(b), and 22.23, Tax   Code, as amended by this Act, apply only to ad valorem taxes imposed   for a tax year beginning on or after January 1, 2018.          SECTION 68.  Section 25.19(b-3), Tax Code, as added by this   Act, applies only to a notice of appraised value for a tax year   beginning on or after January 1, 2019. A notice of appraised value   for a tax year beginning before January 1, 2019, is governed by the   law in effect immediately before that date, and that law is   continued in effect for that purpose.          SECTION 69.  Not later than October 1, 2017:                (1)  the designated officer or employee of each taxing   unit shall submit to the county assessor-collector for each county   in which all or part of the territory of the taxing unit is located   the worksheets used by the designated officer or employee to   calculate the effective and rollback tax rates of the unit for the   2013-2017 tax years; and                (2)  the county assessor-collector for each county   shall post the worksheets submitted to the county   assessor-collector under Subdivision (1) of this section on the   Internet website of the county.          SECTION 70.  Section 41.03(a), Tax Code, as amended by this   Act, applies only to a challenge under Chapter 41, Tax Code, for   which a challenge petition is filed on or after January 1, 2018. A   challenge under Chapter 41, Tax Code, for which a challenge   petition was filed before January 1, 2018, is governed by the law in   effect on the date the challenge petition was filed, and the former   law is continued in effect for that purpose.          SECTION 71.  Sections 41.45 and 41.66, Tax Code, as amended   by this Act, apply only to a protest filed under Chapter 41, Tax   Code, on or after January 1, 2019. A protest filed under that   chapter before January 1, 2019, is governed by the law in effect on   the date the protest was filed, and the former law is continued in   effect for that purpose.          SECTION 72.  Section 41.71, Tax Code, as amended by this Act,   applies only to a hearing on a protest under Chapter 41, Tax Code,   that is scheduled on or after January 1, 2018. A hearing on a   protest under Chapter 41, Tax Code, that is scheduled before   January 1, 2018, is governed by the law in effect on the date the   hearing was scheduled, and that law is continued in effect for that   purpose.          SECTION 73.  Sections 41A.01, 41A.03, and 41A.06, Tax Code,   as amended by this Act, apply only to a request for binding   arbitration under Chapter 41A, Tax Code, that is filed on or after   January 1, 2018.  A request for binding arbitration under Chapter   41A, Tax Code, that is filed before January 1, 2018, is governed by   the law in effect on the date the request is filed, and the former   law is continued in effect for that purpose.          SECTION 74.  (a)  Except as provided by Subsections (b) and   (c) of this section, this Act takes effect January 1, 2018.          (b)  Section 69 of this Act takes effect September 1, 2017.          (c)  The following provisions take effect September 1, 2018:                (1)  Sections 6.41(b) and (d-9), Tax Code, as amended   by this Act;                (2)  Sections 6.41(b-1), (b-2), and (d-10), Tax Code,   as added by this Act;                (3)  Section 6.414(d), Tax Code, as amended by this   Act;                (4)  Section 6.425, Tax Code, as added by this Act;                (5)  Section 25.19(b-3), Tax Code, as added by this   Act;                (6)  Section 41.44(d), Tax Code, as amended by this   Act;                (7)  Section 41.45(d), Tax Code, as amended by this   Act;                (8)  Sections 41.45(d-1), (d-2), and (d-3), Tax Code,   as added by this Act;                (9)  Section 41.66(k), Tax Code, as amended by this   Act; and                (10)  Section 41.66(k-1), Tax Code, as added by this   Act.