Kolkhorst Bill Puts Water Districts Under Standard Tax-Rate Rules

The text as introduced · 1,107 words

89R8834 TJB-D

By: Kolkhorst
S.B. No. 749

A BILL TO BE ENTITLED

AN ACT

relating to the adoption of an ad valorem tax rate by certain

special districts and voter approval of a proposed ad valorem tax

rate that exceeds the voter-approval tax rate.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2051.202(d), Government Code, is amended

to read as follows:

(d) A special purpose district shall post or cause to be

posted on an Internet website the following information, if

applicable:

(1) the name of the special purpose district;

(2) the name and term of office of each member of the

governing body of the special purpose district;

(3) the contact information for the main office of the

special purpose district, including the physical address, the

mailing address, and the telephone number;

(4) the official contact information for each member

of the governing body of the special purpose district;

(5) if the special purpose district employs a person

as a general manager or executive director, or in another position

to perform duties or functions comparable to those of a general

manager or executive director, the name of the general manager,

executive director, or person that performs those duties;

(6) if the special purpose district contracts with a

utility operator, the contact information for a person representing

the utility operator, including a mailing address and telephone

number;

(7) if the special purpose district contracts with a

tax assessor-collector, the contact information for a person

representing the tax assessor-collector, including a mailing

address and telephone number;

(8) if the special purpose district imposes an ad

valorem tax, the rate of the ad valorem tax of the special purpose

district;

(9) if the special purpose district imposes a sales

and use tax, the rate of the sales and use tax of the special purpose

district;

(10) any notice of tax hearing required to be given

under Chapter 26, Tax Code[ , or Section 49.236, Water Code ];

(11) the location and schedule of meetings of the

governing body of the special purpose district;

(12) a statement substantially similar to the

following: "Residents of the district have the right to request the

designation of a meeting location within the district under Section

49.062(g), Water Code. A description of this process can be found at

(insert link to the Internet website described by Section

49.062(g), Water Code).";

(13) each notice of a meeting of the governing body of

the special purpose district under Subchapter C, Chapter 551, for

meetings conducted in the current calendar year and the immediately

preceding calendar year;

(14) the minutes of a public meeting of the governing

body of the special purpose district under Section 551.021 for

meetings conducted in the current calendar year and the immediately

preceding calendar year; and

(15) the most recent financial audit of the special

purpose district.

SECTION 2. Section 26.012(19), Tax Code, is amended to read

as follows:

(19) "Special taxing unit" means[ :

[ (A) ] a taxing unit, other than a school

district, for which the maintenance and operations tax rate

proposed for the current tax year is 2.5 cents or less per $100 of

taxable value[ ;

[ (B) a junior college district; or

[ (C) a hospital district ].

SECTION 3. Section 26.013, Tax Code, is amended by adding

Subsection (c) to read as follows:

(c) This subsection applies only to a junior college

district, a hospital district, or a taxing unit to which former

Section 49.236, Water Code, applied in the 2025 tax year.

Notwithstanding Subsection (b)(2), for each tax year before the

2026 tax year, the foregone revenue amount of a taxing unit to which

this subsection applies is considered to be zero. This subsection

expires December 31, 2028.

SECTION 4. Section 49.057, Water Code, is amended by

amending Subsection (b) and adding Subsection (j) to read as

follows:

(b) The board shall adopt an annual budget. The board of a

developed district[ , as defined by Section 49.23602, ] shall include

as an appendix to the budget the district's:

(1) audited financial statements;

(2) bond transcripts; and

(3) engineer's reports required by Section 49.106.

(j) In this section, "developed district" means a district

that has financed, completed, and issued bonds to pay for all land,

works, improvements, facilities, plants, equipment, and appliances

necessary to serve at least 95 percent of the projected build-out of

the district in accordance with the purposes for its creation or the

purposes authorized by the constitution, this code, or any other

law.

SECTION 5. Section 6B(f), Chapter 1472, Acts of the 77th

Legislature, Regular Session, 2001, is amended to read as follows:

(f) The district may provide that payments required by any

of the district's contracts, agreements, or leases may be payable

from the sale of notes, taxes, or bonds, or any combination of

notes, taxes, or bonds, or may be secured by a lien on or a pledge of

any available funds, including proceeds of the district's

maintenance tax, and may be payable subject to annual appropriation

by the district. The district may pledge to impose and may impose a

maintenance tax in an amount sufficient to comply with the

district's obligations under the district's contracts, leases, and

agreements at a maximum aggregate rate not to exceed 10 cents for

each $100 valuation of taxable property in the district. [ Sections

26.012, 26.04, 26.05, 26.07, and 26.075, Tax Code, do not apply to

maintenance taxes levied and collected for payments under a

contract, agreement, lease, time warrant, or maintenance note

issued or executed under this section. ]

SECTION 6. The following provisions are repealed:

(1) Section 3828.157, Special District Local Laws

Code;

(2) Section 8876.152, Special District Local Laws

Code;

(3) Section 49.107(g), Water Code;

(4) Section 49.108(f), Water Code;

(5) Section 49.236, Water Code;

(6) Section 49.23601, Water Code;

(7) Section 49.23602, Water Code; and

(8) Section 49.23603, Water Code.

SECTION 7. Section 26.012(19), Tax Code, as amended by this

Act, applies only to an ad valorem tax year that begins on or after

the effective date of this Act.

SECTION 8. Section 6B(f), Chapter 1472, Acts of the 77th

Legislature, Regular Session, 2001, as amended by this Act, applies

only to an ad valorem tax year that begins on or after the effective

date of this Act.

SECTION 9. The repeal of Sections 3828.157 and 8876.152,

Special District Local Laws Code, and Sections 49.107(g),

49.108(f), 49.236, 49.23601, 49.23602, and 49.23603, Water Code,

applies only to an ad valorem tax year that begins on or after the

effective date of this Act.

SECTION 10. This Act takes effect January 1, 2026.