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 the "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 changes will apply only to elections ordered on or after January 1, 2026, meaning that any elections ordered before this date will follow the existing laws. Overall, the bill aims to enhance voter participation and approval in the tax rate-setting process by raising the threshold for approval.

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