Tex.
Spec. Dist. Local Laws Code Section 1101.254
Limit on Annual Increase in Tax Rate
(a)
Notwithstanding Section 1101.253 (Election to Increase Maximum Tax Rate), 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 (Election to Increase Maximum Tax Rate).(f)
This section does not affect the applicability of Section 26.07 (Automatic Election to Approve Tax Rate of Taxing Unit Other than School District), Tax Code, to the district’s tax rate, except that if district voters approve a tax rate increase under this section, Section 26.07 (Automatic Election to Approve Tax Rate of Taxing Unit Other than School District), Tax Code, does not apply to the tax rate for that year.(g)
Section 41.001 (Uniform Election Dates)(a), Election Code, does not apply to an election ordered under this section.
Source:
Section 1101.254 — Limit on Annual Increase in Tax Rate, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.1101.htm#1101.254 (accessed Jun. 5, 2024).
