TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 9. PROPERTY TAX ADMINISTRATION

Subchapter A. PRACTICE AND PROCEDURE

34 TAC §9.17

The Comptroller of Public Accounts proposes an amendment to §9.17, concerning notice of public hearing on tax increase. This section is being amended to provide for changes to the model form for notice of public hearing on tax increase from House Bill 954, 76th Legislature, 1999, effective January 1, 2000, and to change the form number to conform with the comptroller form numbering system.

James LeBas, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect there will be no significant revenue impact on the state or local government.

Mr. LeBas also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be in providing new information regarding tax responsibilities. The amendment to the rule will have no fiscal impact on small business. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Buddy Breivogel, Manager, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.

This amendment is proposed under the Tax Code, §26.06(g), which requires the comptroller to adopt rules prescribing the language and format to be used in the part of the notice required by §26.06(b)(2).

The amendment implements the Tax Code, §26.06.

§9.17.Notice of Public Hearing on Tax Increase.

A taxing unit that is required by the Tax Code, §26.06, to publish a notice of public hearing on a proposed tax increase shall use the form and wording of Model Form 50-197 in publishing the notice.

The comptroller adopts Model Form 50-197, as amended in April 2000 , by reference. Copies of this form are available for inspection at the offices of the Texas Register or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711. Copies may also be requested by calling our toll-free number 1-800-252- 9121. In Austin, call 305-9999. From a Telecommunications Device for the Deaf (TDD), call 1- 800-248-4099, toll free. In Austin, the local TDD number is 463-4621.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 5, 2000.

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3699

34 TAC §9.18

The Comptroller of Public Accounts proposes a new §9.18, concerning adjustment for optional homestead exemption. This rule is being proposed to reflect statutory changes made by Senate Bill 4, 76th Legislature, 1999, effective September 1, 1999.

James LeBas, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect there will be no significant revenue impact on the state or local government.

Mr. LeBas also has determined that for each year of the first five years the rule is in effect, the public benefit anticipated as a result of enforcing the rule will be in providing new information regarding tax responsibilities. The new rule will have no fiscal impact on small business. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Buddy Breivogel, Manager, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.

This new section is proposed under the Tax Code, §111.002 and §111.0022, which provides the comptroller the authority to adopt rules for the administration and enforcement of the Tax Code and programs or functions assigned to the comptroller by law.

The new section implements the Tax Code, §26.08, and the Education Code, §42.2522(e).

§9.18.Adjustment for Optional Homestead Exemption.

Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

Maintenance and operations component - the amount calculated by the Texas Education Agency "Worksheet to Assist Districts in Calculating Rollback Rate," which includes an adjustment for the amount of state funds received for the optional homestead exemption.

Current total value - the amount calculated under Tax Code, §26.012(6) and §26.08(h).

For the purposes of computing a rollback tax rate under Tax Code, §26.08, a school district shall reduce the district's tax rate limit to reflect the assistance received for optional homestead exemption assistance provided by Education Code, §42.2522. The tax rate limit is reduced as follows:

Figure: 34 TAC §9.18(b)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on June 5, 2000.

Deputy General Counsel for Tax Policy and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: July 16, 2000

For further information, please call: (512) 463-3699