The bill amends various sections of the Health and Safety Code and the Tax Code to establish that a minimum of 60 percent of votes cast in an election is required to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate. Specifically, it replaces the previous requirement of a majority with this new threshold in several sections, including Sections 281.124(d) and (f), 1101.254(f), and 26.07(d). Additionally, the bill modifies the notice requirements for public hearings on proposed tax rates to reflect this change, ensuring that voters are informed about the new voting threshold.

Furthermore, the bill introduces the concept of a "de minimis rate," which is defined as the sum of the no-new-revenue maintenance and operations rate, a rate that raises $500,000, and the current debt rate for the taxing unit. This new definition is included in the notice requirements for elections regarding tax rates. The changes will take effect on January 1, 2026, and will only apply to elections held after that date, ensuring that any elections conducted prior will follow the existing laws in place at that time.

Statutes affected:
Introduced: Health and Safety Code 281.124, Special District Local Laws Code 1101.254, Tax Code 26.063, Tax Code 26.07, Tax Code 26.08 (Tax Code 26, Health and Safety Code 281, Special District Local Laws Code 1101)