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 must obtain a supermajority vote of at least 60 percent from its governing body to issue general obligation bonds. Additionally, it stipulates that if a taxing unit seeks to adopt an annual tax rate that exceeds the voter-approval tax rate after a failed election on a similar proposition, at least 75 percent of the governing body must approve the new tax rate by record vote.

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 following a failed election. These new sections, added to the Government Code, Tax Code, and Water Code, will only apply to actions taken after the effective date of the Act, which is set for January 1, 2026.

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