S.B. No. 2519 introduces new restrictions on the use of ad valorem tax revenue for the payment of public securities. The bill amends Section 26.07 of the Tax Code by adding a new subsection (h), which prohibits an increase in a taxing unit's maintenance and operations tax revenue, derived from an election, from being used or transferred to a local government corporation for repaying public securities. Additionally, the bill modifies the heading of Chapter 1253 in the Government Code to reflect a focus on "Public Securities" rather than "General Obligation Bonds" and "Political Subdivisions."

Furthermore, the bill adds Section 1253.004 to the Government Code, which establishes that municipalities, counties, or local government corporations cannot dedicate or use revenue from ad valorem taxes for public securities payments, including any revenue transferred to local government corporations for this purpose. This limitation applies only to public securities issued on or after the effective date of the Act. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Tax Code 26.012, Tax Code 26.05, Tax Code 26.07 (Tax Code 26)
Senate Committee Report: Tax Code 26.012, Tax Code 26.05, Tax Code 26.07 (Tax Code 26)
Engrossed: Tax Code 26.07 (Tax Code 26)
House Committee Report: Tax Code 26.07 (Tax Code 26)