The bill, H.B. No. 5303, introduces new requirements for the adoption of ad valorem tax rates and the issuance of general obligation bonds by political subdivisions in Texas. It amends the Government Code by adding Section 1253.004, which mandates that a supermajority vote of at least 60 percent of the governing body is required to approve the issuance of general obligation bonds. Additionally, it amends the Tax Code and Water Code by adding Sections 26.0502 and 49.23604, respectively, which stipulate that a taxing unit or district cannot adopt a tax rate exceeding the voter-approval tax rate unless at least 80 percent of the governing body votes in favor of the ordinance, resolution, or order setting the tax rate, particularly following a failed election on the matter.

These provisions aim to enhance accountability and ensure that a significant majority of governing body members support tax increases or bond issuances, thereby protecting taxpayers from potential overreach. The new sections will apply only to actions taken after the effective date of the Act, which is set for January 1, 2026.

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