HBA-RAR H.B. 954 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 954
By: Uher
Ways & Means
3/9/1999
Introduced



BACKGROUND AND PURPOSE 

Current law requires a public hearing every time a taxing entity's rate
change results in the imposition of a tax that if applied to the total
taxable value would exceed the previous year's levy. This procedure can
result in numerous public hearings and be very costly.  H.B. 954 amends the
Tax Code to provide that a public hearing is only required if the tax rate
exceeds the tax rate for the previous year. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 26.05(d), Tax Code, to prohibit a taxing unit
from adopting a tax rate that exceeds the unit's tax rate for the preceding
tax year, rather than a tax rate that if applied to the total taxable value
would impose an amount of taxes that exceeds last year's levy, until the
unit has held a public hearing and has complied with Section 26.06, Tax
Code. 

SECTION 2.  Amends Section 26.06, Tax Code, as follows:

Sec. 26.06.  New title:  NOTICE, HEARING, AND VOTE ON TAX RATE INCREASE.
Adds "rate" to existing title.   

SECTION 3.  Amends Sections 26.06(a), (b), (d), and (e), Tax Code, to make
conforming and nonsubstantive changes. 

SECTION 4.  Effective date: January 1, 2000.
                       Makes application of this Act prospective.

SECTION 5.  Emergency clause.