Key Concept: Public Notice of Property Tax Rate

KEY CONCEPT: Public Notice of Property Tax Rate

 

KEY QUESTION:  What is the required verbiage for public notices announcing the proposed property tax rate?

 

REFERENCE POINT: Local Government Code Section 140.010

 

TALKING POINTS:

1. The 83rd Texas Legislature passed Senate Bill 1510, which simplifies the wording of the public notices required to be published by counties prior to adopting an ad valorem tax rate.

 

1. The legislation amends Chapter 140 of the Local Government Code by adding Section 140.010.

 

1. A county 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)

 

“A tax rate of $______ per $100 valuation has been proposed by the governing body of (insert name of county).

 

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) 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 …” (see Statute for required contact information)

 

1. A county 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)

“A tax rate of $_____ per $100 valuation has been proposed for adoption by the governing body of (insert name of county).  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.

 

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) 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 before voters are entitled to petition for an election to 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 …” (see Statute for required contact information).