S.B. No. 2529 introduces new requirements for the adoption of ad valorem tax rates and the issuance of general obligation bonds by taxing units in Texas. The bill mandates that a political subdivision cannot issue general obligation bonds unless at least 60 percent of its governing body votes in favor of the issuance. Additionally, it stipulates that a taxing unit may not adopt an annual tax rate exceeding the voter-approval tax rate unless at least 75 percent of its governing body approves the ordinance, resolution, or order setting the tax rate, particularly in cases where a previous proposition to exceed the voter-approval rate was not approved by voters.

The bill also includes similar provisions for water districts, requiring a 75 percent approval from the board before adopting a tax rate that exceeds the voter-approval tax rate. These new sections will apply only to actions taken on or after the effective date of the Act, which is set for January 1, 2026. The legislation aims to enhance accountability and ensure that significant financial decisions receive substantial support from governing bodies before being enacted.

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