H.B. No. 220 introduces new requirements for the adoption of ad valorem tax rates and the issuance of general obligation bonds by taxing units in Texas. Specifically, it mandates that a political subdivision cannot issue general obligation bonds unless at least 60 percent of its governing body votes in favor of the issuance. Additionally, the bill stipulates that a taxing unit may not adopt an annual tax rate that exceeds the voter-approval tax rate unless at least 80 percent of the governing body approves the ordinance, resolution, or order setting the tax rate, particularly in cases where a previous proposition to exceed the voter-approval rate was not approved by voters.

The bill also includes similar provisions for water districts, requiring an 80 percent approval from the board for adopting a tax rate that exceeds the voter-approval tax rate following a failed election. These new sections added to the Government Code, Tax Code, and Water Code are intended to enhance accountability and ensure that significant tax increases receive substantial support from governing bodies. The provisions will apply only to actions taken after the effective date of the Act, which is set for 91 days after the end of the legislative session.

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