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), 1101.254(f), and 26.07(d), among others. Additionally, the bill introduces a definition for "de minimis rate," which is the sum of the no-new-revenue maintenance and operations rate, a rate that raises $500,000, and the current debt rate for the taxing unit.

The bill also makes conforming changes to the notice requirements for public hearings on proposed tax rates, ensuring that the new voting threshold is clearly communicated to voters. It specifies that if the proposed tax rate exceeds both the no-new-revenue tax rate and the voter-approval tax rate, an election must be held, and the new requirement of two-thirds approval is emphasized in the notice language. The changes will take effect on January 1, 2026, and will only apply to elections ordered on or after that date, maintaining the previous laws for elections ordered before the effective 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)