2004 Tax Rate Rollback Elections
20 Taxing Units See Election Activity
Comptroller's Report 2005 Property Tax Calendar Appraisal Review Board Members Texas Property Tax Laws 2004 For some taxing units, adopting the 2004 property tax rate triggered another action — tax rate rollback elections.
A tax rate rollback is the maximum rate that a taxing unit may adopt without a hearing or, in some cases, an election. The Comptroller’s Property Tax Division (PTD) has learned that 20 taxing units are facing a tax rate rollback election in November or December or the possibility of an early 2005 election.
School districts
The PTD found that 17 independent school districts (ISDs) adopted 2004 tax rates exceeding their calculated rollback rates, which is the calculated maximum rate allowed by law without voter approval. Since these adopted tax rates are above the rollback rate, these districts are required to hold an election for local voters to ratify their higher tax rates.
The rollback rate provides the taxing unit with about the same amount of tax revenue it spent the previous year for day-to-day operations, plus an extra 8 percent increase for those operations plus sufficient funds to pay debts in the coming year. For school districts, the extra increase is $0.06 per $100 of property value, rather than 8 percent, based on different steps in the calculation.
School boards in 13 districts set a November 2 tax rate election. Four ISDs had elections slated for November 16, November 20, November 22 and December 2.
Results of the November and December elections had voters in 16 ISDs ratifying the higher school rate, with voters in 1 district voting to limit the 2004 tax rate to the calculated rollback rate.
A school district that adopts a tax rate above the rollback rate must hold a rollback election between 62 and 90 days after the rate is adopted, following state election laws for setting the election date. No petition by citizens is required.
Tax Code Section 26.08 sets out that the school board sets the election between 30 to 90 days after tax rate adoption, but the 2003 legislative session changed Election Code Section 3.005 to replace any conflicting dates in other laws with the 62nd date.
Local school voters are asked to ratify their school’s adopted tax rate. If a simple majority of the votes cast in the election favor the adopted tax rate, then the adopted rate stands. If the voters disapprove the adopted rate, the school district’s rollback rate becomes the adopted tax rate.
After the outcome of the election, the tax collector mails the school tax bills. Local property owners in these 17 districts will be receiving tax bills in late November and early December, rather than in October.
Last year, all four ISDs with tax rate rollback elections on their 2003 tax rates had voters ratify their higher tax rates.
Of those four ISDs, Borden ISD in Borden County also held an election again this year on its 2004 tax rate and the higher rate was ratified.
Other taxing units
Taxpayers in three other taxing units are circulating petitions to roll back the adopted 2004 tax rate to the calculated rollback rate. They include Jefferson County, the City of Bedford in Tarrant County and Tyler Junior College in Smith County.
State law provides that local voters may petition for an election to roll back a tax rate adopted by a taxing unit, other than a school district, if the adopted tax rate is higher than the calculated rollback tax rate.
The law requires that at least 10 percent of the registered voters, shown on the most recent official voters list for the taxing unit, sign the petition. Voters must submit the petition within 90 days of the tax rate adoption.
These taxing units mailed tax bills and are collecting current taxes. If an election requires these taxing units to reduce their adopted tax rates to their rollback rates, the tax collectors will mail out new bills with an extended delinquency date. The collectors also will refund the difference between the taxes paid under the original rate and the taxes owed under the rollback tax rate.
Last year, two of three taxing units, a county and a city, limited their 2003 tax rate.
Reporting elections
The PTD gathered this information informally from local taxing units. The first table lists the school districts, with the election date, election results (if known), the adopted tax rate, the rollback tax rate and the percentage the adopted tax rate exceeded the district’s rollback rate. Tax rates are per $100 of value.
The second table lists the other taxing units, with the petition status of either circulating or submitted; the adopted tax rate; the unit’s effective tax rate and the percentage the adopted tax rate exceeded the effective rate; and the unit’s rollback tax rate and the percentage the adopted tax rate exceeded the rollback rate.
The effective tax rate is a calculated rate that would provide the taxing unit with about the same amount of revenue it received in the year before, on properties taxed in both years. If property values rise, the effective tax rate will go down and vice versa.
Please alert the PTD’s Information Services staff at 1-800-252-9121 with questions about tax rate rollback elections or to report an election in the local area. In Austin, call 512/305-9845, or e-mail the PTD staff at ptd.cpa@cpa.state.tx.us.
2004 Rollback Election Results School District County Election Results 2004 Tax Rate Rollback Rate % Increase Election Date Andrews ISD Andrews Against ratification
For - 435
Against - 397$1.686 $1.6486
old rate 1.687872% 11/2/04 Borden ISD Borden Ratified
For - 240
Against - 53$1.45 $1.35 7% 11/2/04 Groom ISD Carson Ratified
For - 178
Against - 71$1.60 $1.512 6% 11/2/04 Hull-Daisetta Liberty Ratified
For - 507
Against - 1961.5831 1.1941 33% 11/2/04 Jim Hogg ISD Jim Hogg Ratified
For - 1058
Against - 503$1.5024 $1.2768 18% 11/2/04 Joaquin ISD Shelby Ratified
For - 254
Against - 236$1.5148 $1.0988 38% 11/2/04 Lefors ISD Gray Ratified
For - 252
Against - 43$1.50 $1.36 10% 11/2/04 Leon ISD Leon Ratified
For - 193
Against - 58$1.28 $1.1019 16% 11/2/04 London ISD Nueces Ratified
For - 35
Against - 3$1.2494 $1.048 19% 11/20/04 McCamey ISD Upton Ratified
For - 213
Against - 75$1.50 $1.2783 17% 11/2/04 McLean ISD Gray Ratified
For - 216
Against - 209$1.35 $1.17 15% 11/2/04 Pecos Barstow Toyah ISD Reeves Ratified
For - 311
Against - 222$1.50 $1.3249 13% 11/22/04 Plains ISD Yoakum Ratified
For - 153
Against - 37$1.50 $1.457 3% 12/2/04 Santa Gertrudis ISD Kleberg Ratified
For - 50
Against - 10$1.45 $1.3089 11% 11/2/04 Taft ISD San Patricio Ratified
For - 161
Against - 107$1.40 $1.2001 17% 11/16/04 Westbrook ISD Mitchell Ratified
For - 83
Against - 39$1.45 $1.4073 3% 11/2/04 Wink-Loving ISD Winkler Ratified
For - 158
Against - 45$1.50 $1.21 24% 11/2/04 Rates are per $100 of property value.
Source: Carole Keeton Strayhorn, Texas Comptroller of Public Accounts, Property Tax Division.
Taxing Unit County Petition Status 2004 Tax Rate Effective Rate % Increase Roll-Back Rate % Increase County Jefferson Jefferson Circulating $0.425 $0.3509 21% $0.3868 10% City Bedford Tarrant Circulating $0.495 $0.3911 27% $0.4007 24% Special District Tyler Junior College Smith Circulating $0.1623 $0.1177 38% $0.1271 28% Rates are per $100 of property value.
Source: Carole Keeton Strayhorn, Texas Comptroller of Public Accounts, Property Tax Division.
Statement
December 2004
December 2004