H.B. No. 299 introduces significant changes to the financial regulations governing political subdivisions in Texas, specifically by amending Chapter 140 of the Local Government Code to include Section 140.015. This new section establishes a cap on annual expenditures, which cannot exceed the greater of the previous year's expenditures or a calculated amount based on population growth and inflation rates. It also allows for exceeding this limit if two-thirds of voters approve additional expenditures in an election. The bill outlines enforcement mechanisms for violations, enabling actions by the attorney general or registered voters against non-compliant political subdivisions.

In addition to expenditure limits, the bill modifies the procedures for adopting property tax rates, requiring at least two-thirds of registered voters to approve any proposed tax rate that exceeds the no-new-revenue and voter-approval tax rates. It also clarifies definitions and calculations related to these tax rates, including adjustments for operation and maintenance tax rates. The bill repeals several outdated provisions from the Education Code, Local Government Code, and Tax Code, aiming to streamline regulations. These changes will take effect on January 1, 2026, and the comptroller of public accounts will be responsible for creating a publication form for the new tax regulations.

Statutes affected:
Introduced: Health and Safety Code 281.124, Special District Local Laws Code 1101.254, Special District Local Laws Code 3828.157, Special District Local Laws Code 8876.152, Tax Code 26.04, Tax Code 26.041, Tax Code 26.05, Tax Code 26.07, Tax Code 31.112, Water Code 49.107, Water Code 49.108, Water Code 49.236, Water Code 49.23601, Water Code 49.23602, Water Code 49.23603 (Health and Safety Code 281, Water Code 49, Tax Code 26, Tax Code 31, Special District Local Laws Code 8876, Special District Local Laws Code 1101, Special District Local Laws Code 3828)