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TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE D. APPRAISAL AND ASSESSMENT

CHAPTER 26. ASSESSMENT

Sec. 26.01. SUBMISSION OF ROLLS TO TAXING UNITS. (a) By July

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.

(b) When a chief appraiser submits an appraisal roll for county

taxes to a county assessor-collector, the chief appraiser also

shall certify the appraisal district appraisal roll to the

comptroller. However, the comptroller by rule may provide for

submission of only a summary of the appraisal roll. The chief

appraiser shall certify the district appraisal roll or the

summary of that roll in the form and manner prescribed by the

comptroller's rule.

assessor for each taxing unit a listing of those properties which

are taxable by that unit but which are under protest and

therefore not included on the appraisal roll approved by the

appraisal review board and certified by the chief appraiser. This

listing shall include the appraised market value, productivity

value (if applicable), and taxable value as determined by the

appraisal district and shall also include the market value,

taxable value, and productivity value (if applicable) as claimed

by the property owner filing the protest if available. If the

property owner does not claim a value and the appraised value of

the property in the current year is equal to or less than its

value in the preceding year, the listing shall include a

reasonable estimate of the market value, taxable value, and

productivity value (if applicable) that would be assigned to the

property if the taxpayer's claim is upheld. If the property owner

does not claim a value and the appraised value of the property is

higher than its appraised value in the preceding year, the

listing shall include the appraised market value, productivity

value (if applicable) and taxable value of the property in the

preceding year, except that if there is a reasonable likelihood

that the appraisal review board will approve a lower appraised

value for the property than its appraised value in the preceding

year, the chief appraiser shall make a reasonable estimate of the

taxable value that would be assigned to the property if the

property owner's claim is upheld. The taxing unit shall use the

lower value for calculations as prescribed in Sections 26.04 and

26.041 of this code.

(d) The chief appraiser shall prepare and certify to the

assessor for each taxing unit a list of those properties of which

the chief appraiser has knowledge that are reasonably likely to

be taxable by that unit but that are not included on the

appraisal roll certified to the assessor under Subsection (a) or

included on the listing certified to the assessor under

Subsection (c). The chief appraiser shall include on the list for

each property the market value, appraised value, and kind and

amount of any partial exemptions as determined by the appraisal

district for the preceding year and a reasonable estimate of the

market value, appraised value, and kind and amount of any partial

exemptions for the current year. Until the property is added to

the appraisal roll, the assessor for the taxing unit shall

include each property on the list in the calculations prescribed

by Sections 26.04 and 26.041, and for that purpose shall use the

lower market value, appraised value, or taxable value, as

appropriate, included on or computed using the information

included on the list for the property.

(e) Except as provided by Subsection (f), not later than 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.

(f) Subsection (e) does not apply to a county or municipality

that notifies the chief appraiser that the county or municipality

elects not to receive the estimate or assistance described by

that subsection.

Acts 1979, 66th Leg., p. 2276, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 162, ch. 13,

Sec. 114, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 4615, ch.

786, Sec. 1, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p. 4826,

ch. 851, Sec. 17, eff. Aug. 29, 1983; Acts 1983, 68th Leg., p.

4946, ch. 884, Sec. 3, eff. Jan. 1, 1984; Acts 1985, 69th Leg.,

ch. 312, Sec. 6, eff. June 7, 1985; Acts 1987, 70th Leg., ch.

947, Sec. 1, eff. Jan. 1, 1988; Acts 1991, 72nd Leg., 2nd C.S.,

ch. 6, Sec. 44, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch.

1040, Sec. 67, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 643,

Sec. 2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 898, Sec.

2, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1087, Sec. 1,

eff. Jan. 1, 2002.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

55, Sec. 1, eff. January 1, 2008.

Acts 2009, 81st Leg., R.S., Ch.

1328, Sec. 85, eff. September 1, 2009.

Sec. 26.012. DEFINITIONS. In this chapter:

(1) "Additional sales and use tax" means an additional sales and

use tax imposed by:

(A) a city under Section 321.101(b);

(B) a county under Chapter 323; or

on or after September 1, 2001, that:

(i) imposes the sales and use tax under Subchapter I, Chapter

286, Health and Safety Code; or

(ii) imposes the sales and use tax under Subchapter L, Chapter

285, Health and Safety Code.

(2) "Collection rate" means the amount, expressed as a

percentage, calculated by:

(A) adding together estimates of the following amounts:

(i) the total amount of taxes to be levied in the current year

and collected before July 1 of the next year, including any

penalties and interest on those taxes that will be collected

during that period;

(ii) any additional taxes imposed under Chapter 23 collected

between July 1 of the current year and June 30 of the following

year; and

(iii) the total amount of delinquent taxes levied in any

preceding year that will be collected between July 1 of the

current year and June 30 of the following year, including any

penalties and interest on those taxes that will be collected

during that period; and

(B) dividing the amount calculated under Paragraph (A) by the

total amount of taxes that will be levied in the current year.

(3) "Current debt" means debt service for the current year.

(4) "Current debt rate" means a rate expressed in dollars per

$100 of taxable value and calculated according to the following

formula:

CURRENT DEBT RATE = (CURRENT DEBT SERVICE - EXCESS COLLECTIONS) +

(CURRENT TOTAL VALUE X COLLECTION RATE)

CURRENT JUNIOR COLLEGE LEVY

CURRENT TOTAL VALUE

(5) "Current junior college levy" means the amount of taxes the

governing body proposes to dedicate in the current year to a

junior college district under Section 45.105(e), Education Code.

(6) "Current total value" means the total taxable value of

property listed on the appraisal roll for the current year,

including all appraisal roll supplements and corrections as of

the date of the calculation, less the taxable value of property

exempted for the current tax year for the first time under

Section 11.31, except that:

(A) the current total value for a school district excludes:

(i) the total value of homesteads that qualify for a tax

limitation as provided by Section 11.26; and

(ii) new property value of property that is subject to an

agreement entered into under Chapter 313; and

(B) the current total value for a county, municipality, or

junior college district excludes the total value of homesteads

that qualify for a tax limitation provided by Section 11.261.

(7) "Debt" means a bond, warrant, certificate of obligation, or

other evidence of indebtedness owed by a taxing unit that is

payable solely from property taxes in installments over a period

of more than one year, not budgeted for payment from maintenance

and operations funds, and secured by a pledge of property taxes,

or a payment made under contract to secure indebtedness of a

similar nature issued by another political subdivision on behalf

of the taxing unit.

(8) "Debt service" means the total amount expended or to be

expended by a taxing unit from property tax revenues to pay

principal of and interest on debts or other payments required by

contract to secure the debts 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

incurring in the next calendar year.

(9) "Effective maintenance and operations rate" means a rate

expressed in dollars per $100 of taxable value and calculated

according to the following formula:

EFFECTIVE MAINTENANCE AND OPERATIONS RATE =

LAST YEAR'S - LAST YEAR'S - LAST YEAR'S JUNIOR

LEVY DEBT LEVY COLLEGE LEVY

(CURRENT TOTAL VALUE - NEW PROPERTY VALUE)

(10) "Excess collections" means the amount, if any, by which

debt taxes collected in the preceding year exceeded the amount

anticipated in the preceding year's calculation of the rollback

rate, as certified by the collector under Section 26.04(b) of

this code.

(11) "Last year's debt levy" means the total of:

(A) the amount of taxes that would be generated by multiplying

the total taxable value of property on the appraisal roll for the

preceding year, including all appraisal roll supplements and

corrections, other than corrections made pursuant to Section

25.25(d) of this code, as of the date of calculation, by the debt

rate adopted by the governing body in the preceding year under

Section 26.05(a)(1) of this code; and

(B) the amount of debt taxes refunded by the taxing unit in the

preceding year for tax years before that year.

(12) "Last year's junior college levy" means the amount of taxes

dedicated by the governing body in the preceding year for use of

a junior college district under Section 45.105(e), Education

Code.

(13) "Last year's levy" means the total of:

(A) the amount of taxes that would be generated by multiplying

the total tax rate adopted by the governing body in the preceding

year by the total taxable value of property on the appraisal roll

for the preceding year, including:

(i) taxable value that was reduced in an appeal under Chapter

42; and

(ii) all appraisal roll supplements and corrections other than

corrections made pursuant to Section 25.25(d), as of the date of

the calculation, except that last year's taxable value for a

school district excludes the total value of homesteads that

qualified for a tax limitation as provided by Section 11.26 and

last year's taxable value for a county, municipality, or junior

college district excludes the total value of homesteads that

qualified for a tax limitation as provided by Section 11.261; and

(B) the amount of taxes refunded by the taxing unit in the

preceding year for tax years before that year.

(14) "Last year's total value" means the total taxable value of

property listed on the appraisal roll for the preceding year,

including all appraisal roll supplements and corrections, other

than corrections made pursuant to Section 25.25(d), as of the

date of the calculation, except that:

(A) last year's taxable value for a school district excludes the

total value of homesteads that qualified for a tax limitation as

provided by Section 11.26; and

(B) last year's taxable value for a county, municipality, or

junior college district excludes the total value of homesteads

that qualified for a tax limitation as provided by Section

11.261.

(15) "Lost property levy" means the amount of taxes levied in

the preceding year on property value that was taxable in the

preceding year but is not taxable in the current year because the

property is exempt in the current year under a provision of this

code other than Section 11.251 or 11.253, the property has

qualified for special appraisal under Chapter 23 in the current

year, or the property is located in territory that has ceased to

be a part of the unit since the preceding year.

(16) "Maintenance and operations" means any lawful purpose other

than debt service for which a taxing unit may spend property tax

revenues.

(17) "New property value" means:

(A) the total taxable value of property added to the appraisal

roll in the current year by annexation and improvements listed on

the appraisal roll that were made after January 1 of the

preceding tax year, including personal property located in new

improvements that was brought into the unit after January 1 of

the preceding tax year;

(B) property value that is included in the current total value

for the tax year succeeding a tax year in which any portion of

the value of the property was excluded from the total value

because of the application of a tax abatement agreement to all or

a portion of the property, less the value of the property that

was included in the total value for the preceding tax year; and

III, or Section 59, Article XVI, Texas Constitution, property

value that is included in the current total value for the tax

year succeeding a tax year in which the following occurs:

(i) the subdivision of land by plat;

(ii) the installation of water, sewer, or drainage lines; or

(iii) the paving of undeveloped land.

Added by Acts 1987, 70th Leg., ch. 947, Sec. 2, eff. Jan. 1,

1988. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(d)(1),

14.28(1), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 66, Sec.

4, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 534, Sec. 3;

Acts 1993, 73rd Leg., ch. 285, Sec. 3, eff. Aug. 30, 1993; Acts

1993, 73rd Leg., ch. 696, Sec. 1, eff. Jan. 1, 1994; Acts 1993,

73rd Leg., ch. 696, Sec. 1, eff. Jan. 1, 1994; Acts 1995, 74th

Leg., ch. 506, Sec. 1 to 3, eff. Aug. 28, 1995; Acts 1997, 75th

Leg., ch. 165, Sec. 6.77, 29.01, 29.02, eff. Sept. 1, 1997; Acts

1997, 75th Leg., ch. 1070, Sec. 53, eff. Sept. 1, 1997; Acts

2001, 77th Leg., ch. 1290, Sec. 15, eff. Sept. 1, 2001; Acts

2001, 77th Leg., ch. 1505, Sec. 3, eff. Jan. 1, 2002; Acts 2003,

78th Leg., ch. 396, Sec. 3, eff. Jan. 1, 2004.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

830, Sec. 2, eff. January 1, 2008.

Sec. 26.02. ASSESSMENT RATIOS PROHIBITED. The assessment of

property for taxation on the basis of a percentage of its

appraised value is prohibited. All property shall be assessed on

the basis of 100 percent of its appraised value.

Acts 1979, 66th Leg., p. 2277, ch. 841, Sec. 1, eff. Jan. 1,

1981. Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, Sec. 18,

eff. Aug. 29, 1983.

Sec. 26.03. TREATMENT OF CAPTURED APPRAISED VALUE AND TAX

INCREMENT. (a) In this section, "captured appraised value,"

"reinvestment zone," "tax increment," and "tax increment fund"

have the meanings assigned by Chapter 311.

(b) This section does not apply to a school district.

taxable by a taxing unit that corresponds to the portion of the

tax increment of the unit from that property that the unit has

agreed to pay into the tax increment fund for a reinvestment zone

and that is not included in the calculation of "new property

value" as defined by Section 26.012 is excluded from the value of

property taxable by the unit in any tax rate calculation under

this chapter.

(d) The portion of the tax increment of a taxing unit that the

unit has agreed to pay into the tax increment fund for a

reinvestment zone is excluded from the amount of taxes imposed or

collected by the unit in any tax rate calculation under this

chapter, except that the portion of the tax increment is not

excluded if in the same tax rate calculation there is no portion

of captured appraised value excluded from the value of property

taxable by the unit under Subsection (c) for the same

reinvestment zone.

Added by Acts 2001, 77th Leg., ch. 503, Sec. 1, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 150, Sec. 1, eff. Jan.

1, 2004; Acts 2003, 78th Leg., ch. 426, Sec. 1, eff. Jan. 1,

2004.

Sec. 26.04. SUBMISSION OF ROLL TO GOVERNING BODY; EFFECTIVE AND

ROLLBACK TAX RATES. (a) On receipt of the appraisal roll, the

assessor for a taxing unit shall determine the total appraised

value, the total assessed value, and the total taxable value of

property taxable by the unit. He shall also determine, using

information provided by the appraisal office, the appraised,

assessed, and taxable value of new property.

(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 August 1 or as soon thereafter as

practicable. By 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.

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 =

x 1.08) + CURRENT DEBT RATE

(d) The effective tax rate for a county is the sum of the

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.

(e) By August 7 or as soon thereafter as practicable, the

designated officer or employee shall submit the rates to the

governing body. 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

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

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).

(e-1) 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

effective and rollback tax rates under this section.

(g) A person who owns taxable property is entitled to an

injunction prohibiting the taxing unit in which the property is

taxable from adopting a tax rate if the assessor or designated

officer or employee of the unit, as applicable, has not complied

with the computation or publication requirements of this section

and the failure to comply was not in good faith.

(h) For purposes of this section, the anticipated collection

rate of a taxing unit is the percentage relationship that the

total amount of estimated tax collections for the current year

bears to the total amount of taxes imposed for the current year.

The total amount of estimated tax collections for the current

year is the sum of the collector's estimate of:

(1) the total amount of property taxes imposed in the current

year that will be collected before July 1 of the following year,

including any penalties and interest on those taxes that will be

collected during that period; and

(2) the total amount of delinquent property taxes imposed in

previous years that will be collected on or after July 1 of the

current year and before July 1 of the following year, including

any penalties and interest on those taxes that will be collected

during that period.

(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 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 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 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 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.

(k) to (q) Expired.

Acts 1979, 66th Leg., p. 2277, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 163, ch. 13,

Sec. 116, eff. Jan. 1, 1982; Acts 1983, 68th Leg., p. 2165, ch.

400, Sec. 1, eff. June 17, 1983; Acts 1983, 68th Leg., p. 5376,

ch. 987, Sec. 3, eff. June 19, 1983; Acts 1983, 68th Leg., p.

5402, ch. 1001, Sec. 1, eff. Jan. 1, 1984; Acts 1985, 69th Leg.,

ch. 657, Sec. 1, 2, eff. June 14, 1985; Acts 1985, 69th Leg., 1st

C.S., ch. 1, Sec. 2, eff. Sept. 1, 1985; Acts 1986, 69th Leg.,

3rd C.S., ch. 10, art. 1, Sec. 36, eff. Jan. 1, 1987; Acts 1987,

70th Leg., ch. 699, Sec. 1, eff. June 19, 1987; Acts 1987, 70th

Leg., ch. 849, Sec. 2, eff. Aug. 31, 1987; Acts 1987, 70th Leg.,

ch. 947, Sec. 3, eff. Jan. 1, 1988; Acts 1987, 70th Leg., ch.

988, Sec. 1, eff. June 18, 1987; Acts 1991, 72nd Leg., ch. 14,

Sec. 284 (18), eff. Sept. 1, 1991; Acts 1991, 72nd Leg., 2nd

C.S., ch. 6, Sec. 45, eff. Sept. 1, 1991; Acts 1993, 73rd Leg.,

ch. 81, Sec. 2, eff. May 4, 1993; Acts 1993, 73rd Leg., ch. 611,

Sec. 1, 2, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 165,

Sec. 29.01, 29.03, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch.

1070, Sec. 54, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 398,

Sec. 2, eff. Aug. 30, 1999; Acts 1999, 76th Leg., ch. 1358, Sec.

1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch. 1561, Sec. 1,

eff. Aug. 30, 1999.

Sec. 26.041. TAX RATE OF UNIT IMPOSING ADDITIONAL SALES AND USE

TAX. (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 RATE =

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 RATE =

(LAST YEAR'S MAINTENANCE AND OPERATIONS EXPENSE x 1.08) +

(TOTAL CURRENT 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.

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 1.08) +

(TOTAL CURRENT 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.

(d) In order to determine the amount of additional sales and use

tax revenue for purposes of this section, the designated officer

or employee shall use the sales and use tax revenue for the last

preceding four quarters for which the information is available as

the basis for projecting the additional sales and use tax revenue

for the current tax year. If the rate of the additional sales and

use tax is increased or reduced, the projection to be used for

the first tax year after the effective date of the sales and use

tax change shall be adjusted to exclude any revenue gained or

lost because of the sales and use tax rate change. If the unit

did not impose an additional sales and use tax for the last

preceding four quarters, the designated officer or employee shall

request the comptroller of public accounts to provide to the

officer or employee a report showing the estimated amount of

taxable sales and uses within the unit for the previous four

quarters as compiled by the comptroller, and the comptroller

shall comply with the request. The officer or employee shall

prepare the estimate of the additional sales and use tax revenue

for the first year of the imposition of the tax by multiplying

the amount reported by the comptroller by the appropriate

additional sales and use tax rate and by multiplying that product

by .95.

(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

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.

(f) An estimate made by the comptroller under Subsection (d) of

this section need not be adjusted to take into account any

projection of additional revenue attributable to increases in the

total value of items taxable under the state sales and use tax

because of amendments of Chapter 151, Tax Code.

(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 effective tax rate for the unit is the

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 effective tax rate for the unit is the

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.

(i) Any amount derived from the sales and use tax that is or

will be distributed by a county to the recipient of an economic

development grant made under Chapter 381, Local Government Code,

is not considered to be sales and use tax revenue for purposes of

this section.

(j) Any amount derived from the sales and use tax that is

retained by the comptroller under Section 4 or 5, Chapter 1507,

Acts of the 76th Legislature, Regular Session, 1999 (Article

5190.14, Vernon's Texas Civil Statutes), is not considered to be

sales and use tax revenue for purposes of this section.

Added by Acts 1986, 69th Leg., 3rd C.S., ch. 10, art. 1, Sec. 17,

eff. Jan. 1, 1987. Amended by Acts 1987, 70th Leg., ch. 11, Sec.

11, eff. April 2, 1987; Acts 1987, 70th Leg., ch. 947, Sec. 4,

eff. Jan. 1, 1988; Acts 1989, 71st Leg., ch. 256, Sec. 3, eff.

Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 184, Sec. 8, eff. May

24, 1991; Acts 1995, 74th Leg., ch. 1012, Sec. 1, eff. Sept. 1,

1995; Acts 1997, 75th Leg., ch. 165, Sec. 29.04, eff. Sept. 1,

1997; Acts 2003, 78th Leg., ch. 814, Sec. 5.08, eff. Sept. 1,

2003.

Sec. 26.043. EFFECTIVE TAX RATE IN CITY IMPOSING MASS TRANSIT

SALES AND USE TAX. (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

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 effective or rollback tax rate refers

to that rate as adjusted under this section.

does not include the construction, reconstruction, or general

maintenance of municipal streets.

Added by Acts 1986, 69th Leg., 3rd C.S., ch. 10, art. 1, Sec. 35,

eff. Jan. 1, 1987. Amended by Acts 1987, 70th Leg., ch. 947, Sec.

6, eff. Jan. 1, 1988; Acts 1991, 72nd Leg., ch. 736, Sec. 1, eff.

June 15, 1991; Acts 1997, 75th Leg., ch. 165, Sec. 29.05, eff.

Sept. 1, 1997.

Sec. 26.044. EFFECTIVE TAX RATE TO PAY FOR STATE CRIMINAL

JUSTICE MANDATE. (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 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

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)

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.

(d) In this section, "state criminal justice mandate" means the

amount spent by the county in the previous 12 months providing

for the maintenance and operation cost of keeping inmates in

county-paid facilities after they have been sentenced to the

Texas Department of Criminal Justice as certified by the county

auditor based on information provided by the county sheriff,

minus the amount received from state revenue for reimbursement of

such costs.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, Sec. 11.10, eff.

Aug. 29, 1991.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.153, eff. September 1, 2009.

Sec. 26.0441. TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE. (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 effective maintenance and operations rate for the taxing unit

is increased by the rate computed according to the following

formula:

Enhanced Indigent Health Care Expenditures

Amount of Increase = __________________________________________

(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 effective maintenance and operations

rate for the taxing unit is increased by the rate computed

according to the following formula:

(Current Tax Year's Enhanced Indigent Health

Care Expenditures - Preceding Tax Year's

Indigent Health Care Expenditures)

Amount of Increase = __________________________________________

(Current Total Value - New Property Value)

its 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).

(d) In this section, "enhanced indigent health care

expenditures" for a tax year means the amount spent by the taxing

unit for the maintenance and operation costs of providing

indigent health care at the increased minimum eligibility

standards established under Section 61.006, Health and Safety

Code, effective on or after January 1, 2000, in the period

beginning on July 1 of the year preceding the tax year for which

the tax is adopted and ending on June 30 of the tax year for

which the tax is adopted, less the amount of state assistance

received by the taxing unit in accordance with Chapter 61, Health

and Safety Code, that is attributable to those costs.

Added by Acts 1999, 76th Leg., ch. 1377, Sec. 1.27, eff. Sept. 1,

1999.

Sec. 26.045. ROLLBACK RELIEF FOR POLLUTION CONTROL REQUIREMENTS.

(a) The rollback tax rate for a political subdivision of this

state is increased by the rate that, if applied to the total

current value, would impose an amount of taxes equal to the

amount the political subdivision will spend out of its

maintenance and operation funds under Section 26.012(16) to pay

for a facility, device, or method for the control of air, water,

or land pollution that is necessary to meet the requirements of a

permit issued by the Texas Commission on Environmental Quality.

(b) In this section, "facility, device, or method for control of

air, water, or land pollution" means any land, structure,

building, installation, excavation, machinery, equipment, or

device, and any attachment or addition to or reconstruction,

replacement, or improvement of that property, that is used,

constructed, acquired, or installed wholly or partly to meet or

exceed rules or regulations adopted by any environmental

protection agency of the United States or this state for the

prevention, monitoring, control, or reduction of air, water, or

land pollution.

section, a political subdivision shall present information to the

executive director of the Texas Commission on Environmental

Quality in a permit application or in a request for any exemption

from a permit that would otherwise be required detailing:

(1) the anticipated environmental benefits from the installation

of the facility, device, or method for the control of air, water,

or land pollution;

(2) the estimated cost of the pollution control facility,

device, or method; and

(3) the purpose of the installation of the facility, device, or

method, and the proportion of the installation that is pollution

control property.

(d) Following submission of the information required by

Subsection (c), the executive director of the Texas Commission on

Environmental Quality shall determine whether the facility,

device, or method is used wholly or partly as a facility, device,

or method for the control of air, water, or land pollution. If

the executive director determines that the facility, device, or

method is used wholly or partly to control pollution, the

director shall issue a letter to the political subdivision

stating that determination and the portion of the cost of the

installation that is pollution control property.

(e) The Texas Commission on Environmental Quality may charge a

political subdivision seeking a determination that property is

pollution control property an additional fee not to exceed its

administrative costs for processing the information, making the

determination, and issuing the letter required by this section.

The commission may adopt rules to implement this section.

(f) The Texas Commission on Environmental Quality shall adopt

rules establishing a nonexclusive list of facilities, devices, or

methods for the control of air, water, or land pollution, which

must include:

(1) coal cleaning or refining facilities;

(2) atmospheric or pressurized and bubbling or circulating

fluidized bed combustion systems and gasification fluidized bed

combustion combined cycle systems;

(3) ultra-supercritical pulverized coal boilers;

(4) flue gas recirculation components;

(5) syngas purification systems and gas-cleanup units;

(6) enhanced heat recovery systems;

(7) exhaust heat recovery boilers;

(8) heat recovery steam generators;

(9) superheaters and evaporators;

(10) enhanced steam turbine systems;

(11) methanation;

(12) coal combustion or gasification byproduct and coproduct

handling, storage, or treatment facilities;

(13) biomass cofiring storage, distribution, and firing systems;

(14) coal cleaning or drying processes such as coal

drying/moisture reduction, air jigging, precombustion

decarbonization, and coal flow balancing technology;

(15) oxy-fuel combustion technology, amine or chilled ammonia

scrubbing, fuel or emission conversion through the use of

catalysts, enhanced scrubbing technology, modified combustion

technology such as chemical looping, and cryogenic technology;

(16) if the United States Environmental Protection Agency adopts

a final rule or regulation regulating carbon dioxide as a

pollutant, property that is used, constructed, acquired, or

installed wholly or partly to capture carbon dioxide from an

anthropogenic source in this state that is geologically

sequestered in this state;

(17) fuel cells generating electricity using hydrogen derived

from coal, biomass, petroleum coke, or solid waste; and

(18) any other equipment designed to prevent, capture, abate, or

monitor nitrogen oxides, volatile organic compounds, particulate

matter, mercury, carbon monoxide, or any criteria pollutant.

(g) The Texas Commission on Environmental Quality by rule shall

update the list adopted under Subsection (f) at least once every

three years. An item may be removed from the list if the

commission finds compelling evidence to support the conclusion

that the item does not render pollution control benefits.

(h) Notwithstanding the other provisions of this section, if the

facility, device, or method for the control of air, water, or

land pollution described in a permit application or in a request

for any exemption from a permit that would otherwise be required

is a facility, device, or method included on the list adopted

under Subsection (f), the executive director of the Texas

Commission on Environmental Quality, not later than the 30th day

after the date of receipt of the information required by

Subsections (c)(2) and (3) and without regard to whether the

information required by Subsection (c)(1) has been submitted,

shall determine that the facility, device, or method described in

the permit application or in the request for an exemption from a

permit that would otherwise be required is used wholly or partly

as a facility, device, or method for the control of air, water,

or land pollution and shall take the action that is required by

Subsection (d) in the event such a determination is made.

(i) A political subdivision of the state seeking an adjustment

in its rollback tax rate under this section shall provide to its

tax assessor a copy of the letter issued by the executive

director of the Texas Commission on Environmental Quality under

Subsection (d). The tax assessor shall accept the copy of the

letter from the executive director as conclusive evidence that

the facility, device, or method is used wholly or partly as

pollution control property and shall adjust the rollback tax rate

for the political subdivision as provided for by Subsection (a).

Added by Acts 1993, 73rd Leg., ch. 285, Sec. 4, eff. Aug. 30,

1993.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1277, Sec. 5, eff. September 1, 2007.

Sec. 26.05. TAX RATE. (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 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

published 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. The vote on the ordinance,

resolution, or order setting a tax rate that exceeds the

effective tax rate must be a record vote. A motion to adopt an

ordinance, resolution, or order setting a tax rate that exceeds

the effective tax rate must be made in the following form: "I

move that the property tax rate be increased by the adoption of a

tax rate of (specify tax rate), which is effectively a (insert

percentage by which the proposed tax rate exceeds the effective

tax rate) percent increase in the tax rate." If the ordinance,

resolution, or order sets a tax rate that, if applied to the

total taxable value, will impose an amount of taxes to fund

maintenance and operation expenditures of the taxing unit that

exceeds the amount of taxes imposed for that purpose in the

preceding year, the taxing unit must:

(1) include in the ordinance, resolution, or order in type

larger than the type used in any other portion of the document:

(A) the following statement: "THIS TAX RATE WILL RAISE MORE

TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.";

and

(B) if the tax rate exceeds the effective maintenance and

operations rate, the following statement: "THE TAX RATE WILL

EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE

EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT

AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000

HOME BY APPROXIMATELY $(Insert amount)."; and

(2) include on the home page of any Internet website operated by

the unit:

(A) the following statement: "(Insert name of unit) ADOPTED A

TAX RATE THAT WILL RAISE MORE TAXES FOR MAINTENANCE AND

OPERATIONS THAN LAST YEAR'S TAX RATE"; and

(B) if the tax rate exceeds the effective maintenance and

operations rate, the following statement: "THE TAX RATE WILL

EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE TAX RATE

EXCEEDS THE EFFECTIVE MAINTENANCE AND OPERATIONS RATE) PERCENT

AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000

HOME BY APPROXIMATELY $(Insert amount)."

rate before the date required by Subsection (a), the tax rate for

the taxing unit for that tax year is the lower of the 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 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 effective tax rate and may not adopt a higher rate unless it

first complies with Section 26.06.

(e) A person who owns taxable property is entitled to an

injunction restraining the collection of taxes by a taxing unit

in which the property is taxable if the taxing unit has not

complied with the requirements of this section and the failure to

comply was not in good faith. An action to enjoin the collection

of taxes must be filed prior to the date a taxing unit delivers

substantially all of its tax bills.

(f) Except as required by the law under which an obligation was

created, the governing body may not apply any tax revenues

generated by the rate described in Subsection (a)(1) of this

section for any purpose other than the retirement of debt.

(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 effective tax rate and the rollback tax rate of

the district shall be calculated based on the certified estimate

of taxable value.

Acts 1979, 66th Leg., p. 2268, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 164, ch. 13,

Sec. 117, eff. Jan. 1, 1982; Acts 1985, 69th Leg., ch. 657, Sec.

3, eff. June 14, 1985; Acts 1987, 70th Leg., ch. 699, Sec. 2,

eff. June 19, 1987; Acts 1987, 70th Leg., ch. 947, Sec. 7, eff.

Jan. 1, 1988; Acts 1987, 70th Leg., ch. 988, Sec. 2, eff. June

18, 1987; Acts 1991, 72nd Leg., ch. 404, Sec. 1, eff. Jan. 1,

1992; Acts 1997, 75th Leg., ch. 165, Sec. 29.06, eff. Sept. 1,

1997; Acts 1997, 75th Leg., ch. 1039, Sec. 27, eff. Jan. 1, 1998;

Acts 1999, 76th Leg., ch. 398, Sec. 3, eff. Aug. 30, 1999; Acts

1999, 76th Leg., ch. 423, Sec. 1, eff. Jan. 1, 2000; Acts 1999,

76th Leg., ch. 1358, Sec. 2, eff. Jan. 1, 2000.

Amended by:

Acts 2005, 79th Leg., Ch.

412, Sec. 13, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1368, Sec. 1, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 14.001, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

668, Sec. 1, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1328, Sec. 86, eff. September 1, 2009.

Sec. 26.051. EVIDENCE OF UNRECORDED TAX RATE ADOPTION. (a) If

a taxing unit does not make a proper record of the adoption of a

tax rate for a year but the tax rate can be determined by

examining the tax rolls for that year, the governing body of the

taxing unit may take testimony or make other inquiry to determine

whether a tax rate was properly adopted for that year. If the

governing body determines that a tax rate was properly adopted,

it may order that its official records for that year be amended

nunc pro tunc to reflect the adoption of the rate.

(b) An amendment of the official records made under Subsection

(a) of this section is prima facie evidence that the tax rate

entered into the records was properly and regularly adopted for

that year.

Added by Acts 1989, 71st Leg., ch. 2, Sec. 14.01(a), eff. Aug.

28, 1989.

Sec. 26.052. SIMPLIFIED TAX RATE NOTICE FOR TAXING UNITS WITH

LOW TAX LEVIES. (a) This section applies only to a taxing unit

for which the total tax rate proposed for the current tax year:

(1) is 50 cents or less per $100 of taxable value; and

(2) would impose taxes of $500,000 or less when applied to the

current total value for the taxing unit.

(b) A taxing unit to which this section applies is exempt from

the notice and publication requirements of Section 26.04(e) and

is not subject to an injunction under Section 26.04(g) for

failure to comply with those requirements.

public notice of its proposed tax rate in either of the following

methods not later than the seventh day before the date on which

the tax rate is adopted:

(1) mailing a notice of the proposed tax rate to each owner of

taxable property in the taxing unit; or

(2) publishing notice of the proposed tax rate in the legal

notices section of a newspaper having general circulation in the

taxing unit.

(d) A taxing unit that provides public notice of a proposed tax

rate under Subsection (c) is exempt from Sections 26.05(d) and

26.06 and is not subject to an injunction under Section 26.05(e)

for failure to comply with Section 26.05(d). A taxing unit that

provides public notice of a proposed tax rate under Subsection

notice unless the taxing unit provides additional public notice

under Subsection (c) of the higher rate or complies with Sections

26.05(d) and 26.06, as applicable, in adopting the higher rate.

(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 effective tax rate calculated as provided by Section

26.04, a statement substantially identical to the following: "The

proposed tax rate would increase total taxes in (name of taxing

unit) by (percentage