This 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 26.06(b-1) and (b-3), among others. The bill also 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.

Additionally, the bill makes conforming changes to ensure that the new voting requirement is consistently applied across relevant sections of the law. It clarifies 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 tax rate will default to the voter-approval tax rate unless at least two-thirds of voters accept the proposed rate. The changes will take effect on January 1, 2026, and will only apply to elections ordered on or after that date, ensuring that previously ordered elections remain governed by the existing law.

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