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. The bill also 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.

Additionally, the bill 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 for voter approval. The changes will only apply to elections held on or after January 1, 2026, ensuring that any elections prior to this date will follow the existing laws. Overall, the bill aims to enhance voter participation in tax rate decisions 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, Special District Local Laws Code 1101, Health and Safety Code 281)