H.B. No. 104 proposes amendments to the Health and Safety Code and the Tax Code regarding the voting requirements for approving ad valorem tax rates that exceed a taxing unit's voter-approval tax rate. The bill stipulates that in order for a tax rate to be approved, at least two-thirds of the votes cast in the election must favor the proposition, 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). Additionally, the bill introduces a new definition of "de minimis rate" and modifies the notice requirements for public hearings on proposed tax rates to include this new rate.

The bill also clarifies that if two-thirds of the district voters approve a tax rate increase, the provisions of Section 26.07 of the Tax Code will not apply to that tax rate for the year. The changes made by this Act will only apply to elections held on or after its effective date, ensuring that any elections conducted prior will adhere to the laws in effect at that time. The Act is set to 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 end of the legislative session.

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, Health and Safety Code 281, Tax Code 26)