Property Tax Rate Adoption: Deadlines, Notices & Hearings

Transcription

1 Property Tax Rate Adoption: Deadlines, Notices & Hearings John Kennedy (512) Presented to the TXOGA Property Tax Representatives Annual Conference March 7, 2018

2 City & County Budget Adoption Local Government Code, Chapters 102 (city) and 111 (county) Budget Preparation Annual itemized budget containing complete financial statement City At least 30 days before taxes are billed County Over 225,000 population, within 30 days before or on or immediately after first day of fiscal year Under 225,000 population, during 7th or 10th month of current fiscal year If raises more property taxes, must state on cover page amount and percent increase and amount raised from new property Filed with clerk, available for inspection and posted on website Public Hearing City Between 15 days after filing with clerk and date taxes are billed County Over 225,000 population, between 10 days after filing with clerk and last day of 1st month of fiscal year Under 225,000 population, between 15th of month following preparation and date taxes are billed Newspaper notice between 10 to 30 days before hearing Separate votes required to adopt budget and ratify any increase in property tax levy Adopted Budget Must have cover page containing; o Statement of increase, decrease or no change in property tax levy showing amount and percent of change and amount from new property o Record vote of each member of governing body o Tax rates prior year, current year adopted, effective, effective M&O, rollback and debt service o Total amount of debt obligations File with clerk and post on website for one year Taxes may only be levied in accordance with budget Penalty County under 225,000 population any county officer, employee or official who refuses to comply with budget statute commits misdemeanor punishable by fine of $100 to $1,000 and/or county jail confinement from one month to one year Page 1

3 Tax Rate Adoption Deadlines April 30 Chief appraiser certifies estimate of taxable value to counties, cities and school districts July 20 Appraisal Review Board (ARB) approval of appraisal records May not approve if more than 5% of value remains under protest CADs over 1 million population may delay to Aug. 30 and increase value appeal threshold to 10% (Harris, Dallas, Tarrant, Bexar and Travis County) July 25 Chief Appraiser certifies appraisal roll to taxing units August 1 (or as soon thereafter as practicable) Taxing unit s assessor submits appraisal roll to governing body August 7 (or as soon thereafter as practicable) Effective (ETR) and rollback (RTR) tax rates submitted and published September 1 (or 30 days after receipt of appraisal roll) Proposed tax rate notices mailed or published September 29 (or 60 days after receipt of appraisal roll) Last day for tax rate adoption October 1 (or as soon thereafter as practicable) Tax bills mailed Page 2

4 Tax Rate Notices Proposed rate at or below effective tax rate Proposed, preceding year s and effective tax rates Proposed rate above effective tax rate Proposed, preceding year s, effective and rollback tax rates Mail to each property owner or publish in newspaper Hearings: Proposed Rate Above Effective Rate First Heating at least 7 days after proposed tax rate notice Second hearing at least 3 days after first hearing Separate governing body meeting to adopt tax rate Failure to Comply with Truth-in-Taxation Taxpayer may file injunction to prohibit tax rate adoption or stop collection of taxes Must show failure to comply was not in good faith Collection injunction must be filed before substantially all tax bills are mailed Rollback Petition and Election Petition submitted within 90 days from rate adoption Requires 7% of registered voters if M&O taxes $5 million plus and 10% if less Governing body has 20 days to act or petition is presumed valid Election held between 30 and 90 days after petition validated If successful, tax rate reduced to rollback tax rate Page 3

5 Additional Resources Comptroller s Property Tax Assistance Division Truth-in-Taxation Webpage TTARA Research Reports The Property Tax in Texas Truth-in-Taxation: The Guide to How Property Tax Rates Are Set Page 4