Subtract the difference between the proposed rate and the effective tax rate. Then divide the difference by the effective tax rate to get the percent of increase.
Tax Code Section 26.065 and Local Government Code Section 140.010 require certain notices be posted on a website that the taxing unit owns, operates or controls.
The rollback rate can be lower than the effective tax rate when there has been a substantial reduction in debt owed by the taxing unit.
A small taxing unit is one that sets a tax rate lower than $.50 and raises less than $500,000 when multiplied by the current taxable value. Small taxing units have a special notice process.6
Last year’s tax rate is not relevant to the current year’s Truth-in-Taxation requirements. If the tax rate proposed by the governing body does not exceed the lower of the effective rate or the rollback rate, two public hearings and quarter page ads are not required.7
A taxing unit, other than a school district, that adopts a tax rate over the rollback rate is subject to a petition process that could result in a rollback election.8