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), Section 1101.254(f), and Sections 26.06(b-1), (b-3), 26.063(b), 26.07(d), and 26.08(c).

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. The bill also clarifies that if the proposed tax rate exceeds both the voter-approval tax rate and the de minimis rate, an election is required for voter approval. The changes will take effect on January 1, 2026, and will only apply to elections ordered on or after that date.

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 (Special District Local Laws Code 1101, Tax Code 26, Health and Safety Code 281)