85R4849 SMH/TJB/CJC/LHC-D     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   Sections 5.01 and 5.02 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 shall make recommendations to the   comptroller regarding:                (1)  proposed property tax rules and prescribed   procedures and forms;                (2)  minimum standards for the administration and   operation of an appraisal district;                (3)  minimum standards for the administration and   operation of a local tax office;                (4)  appointment of the director, managers, and other   executive staff of 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;                (5)  property tax publications, guidelines, and   communications;                (6)  property value studies for school districts and   ratio studies for appraisal districts;                (7)  reviews of appraisal districts and appraisal   review boards;                (8)  computer hardware and software needs for:                      (A)  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;                      (B)  appraisal districts; and                      (C)  local tax offices; and                (9)  other property tax operational matters.          (b)  The advisory board is composed of six members appointed   by the comptroller with the advice of the governor, lieutenant   governor, and speaker of the house of representatives. Board   members serve at the pleasure of the comptroller.          (c)  The members of the advisory board must have knowledge of   or experience in property tax administration, appraisal, or law.          (d)  Appointments to the advisory board shall be made without   regard to the race, color, disability, gender, religion, age, or   national origin of appointees.          (e)  Each member of the advisory board must be a resident of   this state.          (f)  An elected official may not serve on the advisory board.          (g)  The advisory board is governed exclusively by this   chapter.          (h)  The comptroller's staff shall provide assistance to the   advisory board in performing its duties.          Sec. 5.02.  RESTRICTIONS ON ADVISORY BOARD MEMBERSHIP. A   person is not eligible to serve on the property tax administration   advisory board if the person or the person's spouse:                (1)  is employed by or contracts with the comptroller,   an appraisal district, or a taxing unit;                (2)  owns or controls, directly or indirectly, more   than a 10 percent interest in a business entity or other   organization receiving money from the comptroller, an appraisal   district, or a taxing unit; or                (3)  receives money from a business entity or other   organization receiving money from the comptroller, an appraisal   district, or a taxing unit in an amount that exceeds five percent of   the person's gross income for the preceding calendar year.          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 6.03(a), Tax Code, is amended to read as   follows:          (a)  The appraisal district is governed by a board of   directors. Five directors are appointed by the taxing units that   participate in the district as provided by this section. If the   county assessor-collector is not appointed to the board, the county   assessor-collector serves as a nonvoting director. The county   assessor-collector is ineligible to serve if the board enters into   a contract under Section 6.05(b) or if the commissioners court of   the county enters into a contract under Section 6.24(b). To be   eligible to serve on the board of directors, an individual other   than a county assessor-collector serving as a nonvoting director   must:                (1)  be a resident of the district;                (2)  [and must] have resided in the district for at   least two years immediately preceding the date the individual takes   office; and                (3)  be an elected county officer or an elected   official of a political subdivision all or part of the territory of   which is located in the county. [An individual who is otherwise   eligible to serve on the board is not ineligible because of   membership on the governing body of a taxing unit. An employee of a   taxing unit that participates in the district is not eligible to   serve on the board unless the individual is also a member of the   governing body or an elected official of a taxing unit that   participates in the district.]          SECTION 7.  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 8.  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 9.  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 10.  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; or                (7)  have at least 20 years of experience in property   tax appraisal or consulting.          (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:                      (A)  holds a bachelor's degree in any field; or                      (B)  is licensed as a real estate broker or sales   agent under Chapter 1101, Occupations Code.          SECTION 11.  The heading to Section 11.145, Tax Code, is   amended to read as follows:          Sec. 11.145.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY   HAVING VALUE OF LESS THAN $2,500 [$500].          SECTION 12.  Section 11.145(a), Tax Code, is amended to read   as follows:          (a)  A person is entitled to an exemption from taxation of   the tangible personal property the person owns that is held or used   for the production of income if that property has a taxable value of   less than $2,500 [$500].          SECTION 13.  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 March [April] 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 April [May] 15. The chief appraiser may   further extend the deadline an additional 15 days upon good cause   shown in writing by the property owner.          SECTION 14.  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 15.  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 16.  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 17.  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 18.  Section 26.04, Tax Code, is amended by amending   Subsections (b), (c), and (e) and adding Subsection (c-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 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 effective tax rate and the rollback tax rate for   the unit, where:                (1)  "Effective tax rate" means a rate expressed in   dollars per $100 of taxable value calculated according to the   following formula:          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 = (EFFECTIVE MAINTENANCE AND   OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE          (c-1)  Notwithstanding any other provision of this section,   the governing body may direct the designated officer or employee to   substitute "1.08" for "1.04" in the calculation of the rollback tax   rate if any part of the taxing unit is located in an area declared a   disaster area during the current tax year by the governor or by the   president of the United States.          (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 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 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 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 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).          SECTION 19.  Section 26.041, Tax Code, is amended by   amending Subsections (a), (b), and (c) 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 effective tax rate and rollback   tax rate for the unit are calculated according to the following   formulas:          EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY   LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] -   SALES TAX GAIN RATE   and          ROLLBACK TAX RATE = (EFFECTIVE MAINTENANCE AND   OPERATIONS RATE x 1.04 [1.08]) + CURRENT DEBT RATE -   SALES TAX GAIN RATE   where "sales tax gain rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the following   year as calculated under Subsection (d) [of this section] by the   current total value.          (b)  Except as provided by Subsections (a) and (c) [of this   section], in a year in which a taxing unit imposes an additional   sales and use tax the rollback tax rate for the unit is calculated   according to the following formula, regardless of whether the unit   levied a property tax in the preceding year:          ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND   OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT   TOTAL VALUE - NEW PROPERTY VALUE)] + (CURRENT DEBT RATE   - SALES TAX REVENUE RATE)   where "last year's maintenance and operations expense" means the   amount spent for maintenance and operations from property tax and   additional sales and use tax revenues in the preceding year, and   "sales tax revenue rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the revenue that will   be generated by the additional sales and use tax in the current year   as calculated under Subsection (d) [of this section] by the current   total value.          (c)  In a year in which a taxing unit that has been imposing   an additional sales and use tax ceases to impose an additional sales   and use tax the effective tax rate and rollback tax rate for the   unit are calculated according to the following formulas:          EFFECTIVE TAX RATE = [(LAST YEAR'S LEVY - LOST PROPERTY   LEVY) / (CURRENT TOTAL VALUE - NEW PROPERTY VALUE)] +   SALES TAX LOSS RATE   and   ROLLBACK TAX RATE = [(LAST YEAR'S MAINTENANCE AND   OPERATIONS EXPENSE x 1.04 [1.08]) / ([TOTAL] CURRENT   TOTAL VALUE - NEW PROPERTY VALUE)] + CURRENT DEBT RATE   where "sales tax loss rate" means a number expressed in dollars per   $100 of taxable value, calculated by dividing the amount of sales   and use tax revenue generated in the last four quarters for which   the information is available by the current total value and "last   year's maintenance and operations expense" means the amount spent   for maintenance and operations from property tax and additional   sales and use tax revenues in the preceding year.          (c-1)  Notwithstanding any other provision of this section,   the governing body may direct the designated officer or employee to   substitute "1.08" for "1.04" in the calculation of the rollback tax   rate if any part of the taxing unit is located in an area declared a   disaster area during the current tax year by the governor or by the   president of the United States.          SECTION 20.  Section 26.05(a), Tax Code, is amended 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.          SECTION 21.  Section 26.06(e), Tax Code, is amended to read   as follows:          (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 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 effective tax rate.          SECTION 22.  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 23.  Sections 26.08(a), (b), (d), (d-1), (d-2), (e),   and (h), 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.          (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.          SECTION 24.  Section 26.16(d), Tax Code, is amended to read   as follows:          (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 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 effective maintenance and operations rate is the tax   rate that would generate the same amount of revenue for maintenance   and operations in the current tax year as was generated by a taxing   unit's maintenance and operations rate in the preceding tax year   from property that is taxable in both the current tax year and the   preceding tax year.          "The rollback tax rate is the highest tax rate a taxing unit   may adopt before requiring voter approval at an election. An [In   the case of a taxing unit other than a school district, the voters   by petition may require that a rollback election be held if the unit   adopts a tax rate in excess of the unit's rollback tax rate. In the   case of a school district, an] election will automatically be held   if a taxing unit [the district] wishes to adopt a tax rate in excess   of the unit's [district's] rollback tax rate."          SECTION 25.  Sections 31.12(a) and (b), Tax Code, are   amended to read as follows:          (a)  If a refund of a tax provided by Section 11.431(b),   26.08(d-2) [26.07(g)], 26.15(f), 31.11, or 31.111 is paid on or   before the 60th day after the date the liability for the refund   arises, no interest is due on the amount refunded. If not paid on or   before that 60th day, the amount of the tax to be refunded accrues   interest at a rate of one percent for each month or part of a month   that the refund is unpaid, beginning with the date on which the   liability for the refund arises.          (b)  For purposes of this section, liability for a refund   arises:                (1)  if the refund is required by Section 11.431(b), on   the date the chief appraiser notifies the collector for the unit of   the approval of the late homestead exemption;                (2)  if the refund is required by Section 26.08(d-2)   [26.07(g)], on the date the results of the election to reduce the   tax rate are certified;                (3)  if the refund is required by Section 26.15(f):                      (A)  for a correction to the tax roll made under   Section 26.15(b), on the date the change in the tax roll is   certified to the assessor for the taxing unit under Section 25.25;   or                      (B)  for a correction to the tax roll made under   Section 26.15(c), on the date the change in the tax roll is ordered   by the governing body of the taxing unit;                (4)  if the refund is required by Section 31.11, on the   date the auditor for the taxing unit determines that the payment was   erroneous or excessive or, if the amount of the refund exceeds the   applicable amount specified by Section 31.11(a), on the date the   governing body of the unit approves the refund; or                (5)  if the refund is required by Section 31.111, on the   date the collector for the taxing unit determines that the payment   was erroneous.          SECTION 26.  Section 33.08(b), Tax Code, is amended to read   as follows:          (b)  The governing body of the taxing unit or appraisal   district, in the manner required by law for official action, may   provide that taxes that become delinquent on or after June 1 under   Section 26.08(d-1) [26.07(f)], 26.15(e), 31.03, 31.031, 31.032,   31.04, or 42.42 incur an additional penalty to defray costs of   collection. The amount of the penalty may not exceed the amount of   the compensation specified in the applicable contract with an   attorney under Section 6.30 to be paid in connection with the   collection of the delinquent taxes.          SECTION 27.  Section 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 28.  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 29.  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 30.  Sections 41.44(a), (b-1), (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)  before May 15 [1] or 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.          (b-1)  Notwithstanding Subsection (a)(1), an owner of a   single-family residence that qualifies for an exemption under   Section 11.13 [property described by that subsection] who files a   notice of protest after the deadline prescribed by that subsection   but before the appraisal review board approves the appraisal   records is entitled to a hearing and determination of the protest if   the property owner files the notice before June 1.          (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 31.  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 32.  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 33.  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 34.  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 35.  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 36.  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 37.  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 38.  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 39.  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 40.  Sections 140.010(d) and (e), Local Government   Code, are amended to read as follows:          (d)  A county or municipality that proposes a property tax   rate that does not exceed the [lower of the effective tax rate or   the] rollback tax rate shall provide the following notice:   "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX   RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)   "A tax rate of $______ per $100 valuation has been proposed by the   governing body of (insert name of county or municipality).          PROPOSED TAX RATE           $______ per $100          PRECEDING YEAR'S TAX RATE  $______ per $100          EFFECTIVE TAX RATE          $______ per $100   "The effective tax rate is the total tax rate needed to raise the   same amount of property tax revenue for (insert name of county or   municipality) from the same properties in both the (insert   preceding tax year) tax year and the (insert current tax year) tax   year.   "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS   FOLLOWS:   property tax amount = (rate) x (taxable value of your property) /   100   "For assistance or detailed information about tax calculations,   please contact:          (insert name of county or municipal tax assessor-collector)          (insert name of county or municipality) tax   assessor-collector          (insert address)          (insert telephone number)          (insert e-mail address)          (insert Internet website address, if applicable)"          (e)  A county or municipality that proposes a property tax   rate that exceeds the [lower of the effective tax rate or the]   rollback tax rate shall provide the following notice:   "NOTICE OF (INSERT CURRENT TAX YEAR) TAX YEAR PROPOSED PROPERTY TAX   RATE FOR (INSERT NAME OF COUNTY OR MUNICIPALITY)   "A tax rate of $_____ per $100 valuation has been proposed for   adoption by the governing body of (insert name of county or   municipality). This rate exceeds the [lower of the effective or]   rollback tax rate, and state law requires that two public hearings   be held by the governing body before adopting the proposed tax   rate.  The governing body of (insert name of county or   municipality) proposes to use revenue attributable to the tax rate   increase for the purpose of (description of purpose of increase).          PROPOSED TAX RATE$______ per $100                PRECEDING YEAR'S TAX RATE$______ per $100                EFFECTIVE TAX RATE$______ per $100                ROLLBACK TAX RATE$______ per $100         "The effective tax rate is the total tax rate needed to raise the   same amount of property tax revenue for (insert name of county or   municipality) from the same properties in both the (insert   preceding tax year) tax year and the (insert current tax year) tax   year.   "The rollback tax rate is the highest tax rate that (insert name of   county or municipality) may adopt without holding [before voters   are entitled to petition for] an election to ratify [limit] the rate   [that may be approved to the rollback rate].   "YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS   FOLLOWS:   property tax amount = (rate) x (taxable value of your property) /   100   "For assistance or detailed information about tax calculations,   please contact:          (insert name of county or municipal tax assessor-collector)          (insert name of county or municipality) tax   assessor-collector          (insert address)          (insert telephone number)          (insert e-mail address)          (insert Internet website address, if applicable)   "You are urged to attend and express your views at the following   public hearings on the proposed tax rate:          First Hearing:  (insert date and time) at (insert location of   meeting).          Second Hearing:  (insert date and time) at (insert location   of meeting)."          SECTION 41.  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 42.  Sections 1122.2522, 3828.157, and 8876.152,   Special District Local Laws Code, are amended to read as follows:          Sec. 1122.2522.  ROLLBACK TAX RATE PROVISIONS APPLICABLE.   [(a)] If in any year the board adopts a tax rate that exceeds the   rollback tax rate calculated as provided by Chapter 26, Tax Code,   [the qualified voters of the district by petition may require that]   an election under Section 26.08 of that code must be held to   determine whether or not to approve [reduce] the tax rate adopted by   the board for that year [to the rollback tax rate].          [(b)     To the extent a conflict exists between this section   and a provision of the Tax Code, the provision of the Tax Code   prevails.]          Sec. 3828.157.  INAPPLICABILITY OF CERTAIN TAX CODE   PROVISIONS. Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do   not apply to a tax imposed under Section 3828.153 or 3828.156.          Sec. 8876.152.  APPLICABILITY OF CERTAIN TAX PROVISIONS.   (a)  Sections 26.04, 26.05, 26.06, and 26.08 [26.07], Tax Code, do   not apply to a tax imposed by the district.          (b)  Sections 49.236(a)(1) and (2) and (b) [Section 49.236],   Water Code, apply [as added by Chapter 248 (H.B. 1541), Acts of the   78th Legislature, Regular Session, 2003, applies] to the district.          SECTION 43.  Section 49.107(g), Water Code, is amended to   read as follows:          (g)  Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do   not apply to a tax levied and collected under this section or an ad   valorem tax levied and collected for the payment of the interest on   and principal of bonds issued by a district.          SECTION 44.  Section 49.108(f), Water Code, is amended to   read as follows:          (f)  Sections 26.04, 26.05, and 26.08 [26.07], Tax Code, do   not apply to a tax levied and collected for payments made under a   contract approved in accordance with this section.          SECTION 45.  Section 49.236, Water Code, as added by Chapter   335 (S.B. 392), Acts of the 78th Legislature, Regular Session,   2003, is amended by amending Subsections (a) and (d) and adding   Subsection (e) to read as follows:          (a)  Before the board adopts an ad valorem tax rate for the   district for debt service, operation and maintenance purposes, or   contract purposes, the board shall give notice of each meeting of   the board at which the adoption of a tax rate will be considered.   The notice must:                (1)  contain a statement in substantially the following   form:   "NOTICE OF PUBLIC HEARING ON TAX RATE          "The (name of the district) will hold a public hearing on a   proposed tax rate for the tax year (year of tax levy) on (date and   time) at (meeting place). Your individual taxes may increase or   decrease, depending on the change in the taxable value of your   property in relation to the change in taxable value of all other   property and the tax rate that is adopted.          "(Names of all board members and, if a vote was taken, an   indication of how each voted on the proposed tax rate and an   indication of any absences.)";                (2)  contain the following information:                      (A)  the district's total adopted tax rate for the   preceding year and the proposed tax rate, expressed as an amount per   $100;                      (B)  the difference, expressed as an amount per   $100 and as a percent increase or decrease, as applicable, in the   proposed tax rate compared to the adopted tax rate for the preceding   year;                      (C)  the average appraised value of a residence   homestead in the district in the preceding year and in the current   year; the district's total homestead exemption, other than an   exemption available only to disabled persons or persons 65 years of   age or older, applicable to that appraised value in each of those   years; and the average taxable value of a residence homestead in the   district in each of those years, disregarding any homestead   exemption available only to disabled persons or persons 65 years of   age or older;                      (D)  the amount of tax that would have been   imposed by the district in the preceding year on a residence   homestead appraised at the average appraised value of a residence   homestead in that year, disregarding any homestead exemption   available only to disabled persons or persons 65 years of age or   older;                      (E)  the amount of tax that would be imposed by the   district in the current year on a residence homestead appraised at   the average appraised value of a residence homestead in that year,   disregarding any homestead exemption available only to disabled   persons or persons 65 years of age or older, if the proposed tax   rate is adopted; [and]                      (F)  the difference between the amounts of tax   calculated under Paragraphs (D) and (E), expressed in dollars and   cents and described as the annual percentage increase or decrease,   as applicable, in the tax to be imposed by the district on the   average residence homestead in the district in the current year if   the proposed tax rate is adopted; and                      (G)  if the proposed combined debt service,   operation and maintenance, and contract tax rate exceeds the   rollback tax rate, a description of the purpose of the proposed tax   increase; and                (3)  contain a statement in substantially the following   form:   "NOTICE OF VOTE ON TAX RATE [TAXPAYERS' RIGHT TO ROLLBACK ELECTION]          "If operation and maintenance taxes on the average residence   homestead increase by more than four [eight] percent, [the   qualified voters of the district by petition may require that] an   election must be held to determine whether to ratify [reduce] the   operation and maintenance tax rate [to the rollback tax rate] under   Section 49.236(d), Water Code."          (d)  If the governing body of a district adopts a combined   debt service, operation and maintenance, and contract tax rate that   exceeds the rollback tax rate, [would impose more than 1.08 times   the amount of tax imposed by the district in the preceding year on a   residence homestead appraised at the average appraised value of a   residence homestead in the district in that year, disregarding any   homestead exemption available only to disabled persons or persons   65 years of age or older, the qualified voters of the district by   petition may require that] an election must be held to determine   whether [or not] to ratify [reduce] the tax rate adopted for the   current year [to the rollback tax rate] in accordance with the   procedures provided by Sections 26.08(b)-(d) [26.07(b)-(g) and   26.081], Tax Code. For purposes of Sections 26.08(b)-(d)    [26.07(b)-(g)] and this section [subsection], the rollback tax rate   is the sum of the following tax rates:                (1)  the current year's debt service tax rate;                (2)  the current year's [and] contract tax rate; and                (3)  [rates plus] the operation and maintenance tax   rate that would impose 1.04 [1.08] times the amount of the operation   and maintenance tax imposed by the district in the preceding year on   a residence homestead appraised at the average appraised value of a   residence homestead in the district in that year, disregarding any   homestead exemption available only to disabled persons or persons   65 years of age or older.          (e)  Notwithstanding any other provision of this section,   the board may substitute "eight percent" for "four percent" in   Subsection (a) and "1.08" for "1.04" in Subsection (d) if any part   of the district is located in an area declared a disaster area   during the current tax year by the governor or by the president of   the United States.          SECTION 46.  The following provisions are repealed:                (1)  Sections 403.302(m-1) and (n), Government Code;                (2)  Section 1063.255, Special District Local Laws   Code;                (3)  Section 26.07, Tax Code;                (4)  Section 49.236, Water Code, as added by Chapter   248 (H.B. 1541), Acts of the 78th Legislature, Regular Session,   2003; and                (5)  Section 49.2361, Water Code.          SECTION 47.  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 48.  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 49.  Section 6.03(a), Tax Code, as amended by this   Act, does not affect the right of a person serving on the board of   directors of an appraisal district on January 1, 2018, to complete   the person's term on the board.          SECTION 50.  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 51.  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 52.  Section 11.145, Tax Code, as amended by this   Act, applies only to ad valorem taxes imposed for a tax year   beginning on or after January 1, 2018.          SECTION 53.  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 54.  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 55.  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 56.  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 57.  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 58.  (a)  Except as provided by Subsection (b) of   this section, this Act takes effect January 1, 2018.          (b)  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.