CAI(LEGAL) - APPROPRIATIONS AND REVENUE SOURCES: AD VALOREM TAXES

Tax Bonds and Maintenance Tax

Notice to Board

  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 obligations;
  3. A schedule of the taxing unit's debt obligations as prescribed by Tax Code 26.04(e)(3);
  4. The amount of additional sales and use tax revenue anticipated in calculations under Tax Code 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 Tax Code 26.04(i) or (j), a schedule as prescribed by Tax Code 26.04(e)(6); and
  7. In the year following the year in which a taxing unit raised its rollback rate as required by Tax Code 26.04(j), a schedule as prescribed by Tax Code 26.04(e)(7).

Tax Code 26.04(e)

Tax Rate

  1. The rate that, if applied to the total taxable value, will impose the total amount published under Tax Code 26.04(e)(3)(c), less any amount of additional sales and use tax revenue that will be used to pay debt service; 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.

Tax Code 26.05(a)–(b)

Effective Tax Rate

Maintenance and Operations Tax Rate

Internet Posting

Higher Rate

Public Hearing

Tax Code 26.06(a)–(d)

Adoption of Tax Rate After Hearing

Supplemental Notice

  1. Is unable to comply with the requirements of this section because of the failure of an electronic or mechanical device, including a computer or server; or
  2. Is unable to comply with the requirements of this section due to other circumstances beyond its control.

Tax Code 26.065

Election to Repeal Increase

Tax Code 26.07(a)–(e)

Call for Election

Exception

Election Code 3.003, .005(c), 41.002

Notice to County Clerk and Voter Registrar

Proposition

Tax Information to County

Tax Code 26.16(a)–(b)

Discounts

Option 1

  1. Three percent if the tax is paid in October or earlier;
  2. Two percent if the tax is paid in November; and
  3. One percent if the tax is paid in December.

Tax Code 31.04(c), .05(b)

Option 2

  1. Three percent if the tax is paid before or during the next full calendar month following the date on which the tax bills were mailed;
  2. Two percent if the tax is paid during the second full calendar month following the date on which the tax bills were mailed; and
  3. One percent if the tax is paid during the third full calendar month following the date on which the tax bills were mailed.

Tax Code 31.05(c)

Both Options

Rescission

Split Payment

Tax Code 31.03, .04(c)

In Certain Counties

Installment Payments

Certain Homesteads

Tax Code 31.031(a)–(a-2)

Partial Payments

Disaster Area

  1. Real property that:
    1. Is the residence homestead of the owner or consists of property that is used for residential purposes and that has fewer than five living units or is owned or leased by a business entity that had not more than the amount calculated as provided by Tax Code 31.032(h) in gross receipts in the entity's most recent federal tax year or state franchise tax annual period, according to the applicable federal income tax return or state franchise tax report of the entity;
    2. Is located in a disaster area; and
    3. Has been damaged as a direct result of the disaster;
  2. Tangible personal property that is owned or leased by a business entity described above at item 1(a); and
  3. Taxes that are imposed on the property by a taxing unit before the first anniversary of the disaster.

Tax Code 31.032(a)–(b-1)

Performing Services in Lieu of Paying Taxes

Delinquency Date

  1. The taxing unit has provided for split payments, as described above. Tax Code 31.03
  2. The taxing unit's tax bills are mailed after January 10. Tax Code 31.04(a)
  3. The taxing unit's tax bills are mailed after September 30 and the taxing unit has adopted discounts provided by Tax Code 31.05(c). Tax Code 31.04(d)
  4. A person who owns any interest in the property is an eligible person serving on active duty in any branch of the U.S. armed forces during a war or national emergency declared in accordance with federal law as provided by Tax Code 31.02(b).

Tax Code 31.02

Delinquent Tax Collection

Additional Penalties

Tax Code 33.07–.08

Homestead Exemptions

  1. By the governing body of the taxing unit; or
  2. By a favorable vote of a majority of the qualified voters of the taxing unit at an election called by the governing body of a taxing unit, and the governing body shall call the election on the petition of at least 20 percent of the number of qualified voters who voted in the preceding election of the taxing unit.

Tax Code 11.13(d)–(f)

Application for Exemption

Homesteads Rendered Uninhabitable or Unusable

Disabled Veterans and Their Families

Portion of Assessed Value

Owned Residence
Donated Residence
  1. At no cost to the disabled veteran; or
  2. At some cost to the disabled veteran in the form of a cash payment, a mortgage, or both in an aggregate amount that is not more than 50 percent of the good faith estimate of the market value of the residence homestead made by the charitable organization as of the date the donation is made.

Total Appraised Value

  1. Was the residence homestead of the surviving spouse when the disabled veteran died; and
  2. Remains the residence homestead of the surviving spouse.

Tax Code 11.131(b)–(d)

Surviving Spouse of Armed Services Member Killed in Action

Surviving Spouse of First Responder Killed in Line of Duty

Additional Exemptions

Notice of Optional Exemption

Disaster Area

Branch Campus Maintenance Tax

  1. To operate and maintain a branch campus and support its programs and services in the area of the political subdivision that levied the tax; and
  2. Under an agreement by the applicable junior college district and the political subdivision levying the tax, to make lease payments to the political subdivision for facilities used exclusively by the branch campus that are owned by the political subdivision.

Education Code 130.253(a), (k)

Local Steering Committee

  1. Serve as liaison between the local community, the college district which would operate the branch campus, and the Coordinating Board;
  2. Be responsible for conducting a feasibility study and a survey of the needs and potential of the area for a branch campus;
  3. Provide information to the community, which at a minimum, describes the nature and purpose of a branch campus;
  4. Summarize and evaluate the results of the feasibility study and survey and formulate conclusions for submission to the commissioner;
  5. Prepare and circulate a petition to obtain not fewer than five percent of the qualified voters of the proposed branch maintenance tax jurisdiction; and
  6. Present the appropriately signed petition as set out in 19 Administrative Code 8.30(a) to appropriate authorities for certification in compliance with Education Code 130.087.

19 TAC 8.93

Application Procedures

Local Feasibility Study and Survey

19 TAC 8.95

Petition

19 TAC 8.96–.98

Coordinating Board Approval

  1. The branch campus maintenance tax rate does not exceed five cents on each $100 valuation of all taxable property;
  2. A certified petition has been submitted by the appropriate authorities to the Coordinating Board; and
  3. The proposed tax is feasible and desirable.

Education Code 130.253(c); 19 TAC 8.99(a)

Criteria

  1. Demographic and economic characteristics of the jurisdiction seeking to establish the maintenance tax, such as:
    1. Population trends by age group;
    2. Economic development trends and projection; and
    3. Employment trends and projection (i.e., supply-demand data).
  2. Potential student clientele, including:
    1. Educational levels by age group; and
    2. College-bound data (i.e., trends by age group).
  3. The financial status of the proposed jurisdiction to be taxed and the state as a whole, including:
    1. Any projected growth or decline in the tax base; and
    2. Trends in state appropriations for community/junior colleges and other institutions of higher education.
  4. Projected programs and services for the proposed jurisdiction based on economic and population trends.
  5. Proximity and impediments to programs and services to existing institutions of higher education such as:
    1. Identification of institutions that could be affected by a new branch campus;
    2. Documentation of existing programs and services:
      1. On the campuses of nearby institutions of higher education;
      2. Available to citizens within a 50-mile radius of the proposed jurisdiction; and
      3. Offered in the proposed jurisdiction by existing institutions of higher education.
    3. Financial limitations on existing institutions of higher education inhibiting the offering of programs and services in the proposed jurisdiction;
    4. Availability of facilities, libraries, and equipment for institutions to offer classes in the proposed jurisdiction;
    5. Distance and traffic patterns to existing institutions of higher education;
    6. Effect on enrollments of existing institutions of higher education; and
    7. Effect on financing of existing institutions of higher education.

Education Code 130.253(c); 19 TAC 8.99(b)

Public Hearings

  1. Assess public sentiment regarding the levying of a branch campus maintenance tax;
  2. Determine whether programs in the proposed jurisdiction would create unnecessary duplication or seriously harm programs in existing community/junior college districts or other institutions of higher education in the area; and
  3. Assess the potential impact of the proposed jurisdiction on existing community/junior colleges or other institutions of higher education in the area and on the state of Texas.

Education Code 130.253(c); 19 TAC 8.99(c)

Recommendation

Education Code 130.253(c); 19 TAC 8.99(d), .100

Election

19 TAC 8.101–.102

Resubmission of Applications

Reinvestment Zones—Tax Increment Financing

Board of Directors

Collection and Deposit of Tax Increments

Transfer of Funds Between Reinvestment Zones

  1. The taxing units that participate in the zone from which the money is to be transferred participate in the adjacent zone and vice versa;
  2. Each participating taxing unit has agreed to deposit the same portion of its tax increment in the fund for each zone;
  3. Each participating taxing unit has agreed to the transfer; and
  4. The holders of any tax increment bonds or notes issued for the zone from which the money is to be transferred have agreed to the transfer.

Tax Code 311.014(f)

Goods-in-Transit

Exception

Reinvestment Zones—Tax Abatement

Eligibility to Participate

  1. Limit the discretion of the governing body to decide whether to enter into a specific tax abatement agreement.
  2. Limit the discretion of the governing body to delegate to its employees the authority to determine whether or not the governing body should consider a particular application or request for tax abatement.
  3. Create any property, contract, or other legal right in any person to have the governing body consider or grant a specific application or request for tax abatement.

Tax Code 312.002

Notice of Public Hearing on Designation

Notice of Tax Abatement Agreements

Entering Tax Abatement Agreements

Texarkana College

CAI(LEGAL)-LJC

UPDATE 34

DATE ISSUED: 4/26/2018