S.B. No. 3067 introduces new restrictions on the use of ad valorem tax revenues and the issuance of bonds supported by such taxes in Texas. 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 from being used or transferred to a local government corporation for the repayment of public securities. Additionally, it adds Section 1253.004 to the Government Code, which states that municipalities, counties, or local government corporations cannot dedicate or use revenue derived from ad valorem taxes for the payment of public securities, including any revenue transferred to local government corporations for this purpose.

The provisions of this bill apply specifically to public securities issued on or after its effective date. The bill is designed to ensure that ad valorem tax revenues are not diverted from their intended purposes, thereby enhancing fiscal responsibility and accountability in the management of public funds. The act will take effect immediately if it receives a two-thirds majority vote in both houses; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Tax Code 26.07 (Tax Code 26)