The bill 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. Specifically, it 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 26.07(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 how the voter-approval tax rate is calculated. The changes made by this Act will only apply to elections ordered on or after January 1, 2026, ensuring that any elections ordered before this date will follow the existing laws in effect at that time.

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)