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 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). 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 voters are informed about the implications of the proposed rates and the necessity of an election if the rates exceed the voter-approval tax rate. The amendments aim to enhance transparency and voter engagement in the tax approval process. The changes will apply only to elections held after the effective date of the Act, which will take effect immediately if it receives a two-thirds vote from both houses of the legislature.

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)