H.B. No. 60 introduces new requirements for the adoption of ad valorem tax rates and the issuance of general obligation bonds by taxing units in Texas. Specifically, it mandates that a political subdivision must secure a supermajority vote of at least 60 percent from its governing body to issue general obligation bonds. Additionally, for a taxing unit to adopt an annual tax rate that exceeds the voter-approval tax rate, at least 80 percent of the governing body must approve 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 establishes similar voting requirements for water districts, stipulating that unless at least 80 percent of the board members vote in favor, the district cannot adopt a combined tax rate that exceeds the voter-approval tax rate or the mandatory tax election rate. These provisions aim to enhance accountability and ensure that significant financial decisions receive broad support from governing bodies. The new sections added to the Government Code, Tax Code, and Water Code will apply only to actions taken after the effective date of the Act, which is set for 91 days following the end of the legislative session.

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