Texas Special District Local Laws Code § 1101.254 Limit On Annual Increase In Tax Rate

Sec. 1101.254. LIMIT ON ANNUAL INCREASE IN TAX RATE. (a) Notwithstanding Section 1101.253, the board may not in any year increase the tax rate by five cents or more on each $100 valuation above the tax rate imposed in the preceding year unless the increase is approved at an election held under this section.

(b) The board may order an election to increase the district's tax rate by five cents or more on each $100 of valuation above the rate imposed in the preceding year. The board shall order the election if the board receives a petition requesting an election that is signed by at least 15 percent of the registered voters in the district.

(c) The ballot for the election shall be printed to permit voting for or against the proposition: "The imposition of the (insert year) annual tax by the district for hospital purposes at a rate not to exceed (insert rate) cents on the $100 valuation of all taxable property in the district."

(d) If a majority of the votes favor the proposition, the board may impose taxes as authorized by the proposition. If a majority of the votes do not favor the proposition, the board may not increase the tax rate for that year by five cents or more on each $100 valuation above the tax rate imposed in the preceding year.

(e) This section does not authorize the board to impose taxes in an amount that exceeds the maximum amount approved by the voters under Section 1101.253.

(f) This section does not affect any rights district voters may have to petition for an election under Section 26.07, Tax Code, except that if district voters approve a tax rate increase under this section, the voters may not petition for an election under Section 26.07, Tax Code, as to the tax rate for that year.

(g) Section 41.001(a), Election Code, does not apply to an election ordered under this section.

Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

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Last modified: September 28, 2016