House Bill No. 107 amends various sections of the Health and Safety Code and the Tax Code to change the voting requirement for approving an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate. The bill stipulates that at least two-thirds of the votes cast in an election must favor the proposition for the tax rate to be approved, replacing the previous requirement of a majority. This change is reflected in multiple sections, including Sections 281.124(d) and (f), as well as Sections 26.06(b-1), (b-3), 26.07(d), and 26.08(c), where the language has been updated to reflect the new two-thirds requirement.

Additionally, the bill introduces a definition for the "de minimis rate," which is the sum of the no-new-revenue maintenance and operations rate, a rate that will raise $500,000, and the current debt rate for the taxing unit. This definition is included in Section 26.063(b) and modifies the notice requirements for elections regarding tax increases. The changes made by this Act will apply only to elections held on or after its effective date, ensuring that prior elections remain governed by the law in effect at that time. The Act will take effect immediately if it receives a two-thirds vote from both houses of the legislature; otherwise, it will take effect 91 days after the legislative session ends.

Statutes affected:
Introduced: Health and Safety Code 281.124, Special District Local Laws Code 1101.254, Tax Code 26.063, Tax Code 26.07, Tax Code 26.08 (Tax Code 26, Health and Safety Code 281, Special District Local Laws Code 1101)