HB 301

89S20932 CS-F
		By: Swanson
  H.B. No. 301
  A BILL TO BE ENTITLED
  AN ACT
  relating to the vote required in an election to approve an ad
  valorem tax rate that exceeds a taxing unit's voter-approval tax
  rate; making conforming changes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 281.124(d) and (f), Health and Safety
  Code, are amended to read as follows:
         (d)  If at least two-thirds [a majority] of the votes cast in
  the election favor the proposition, the tax rate for the specified
  tax year is the rate approved by the voters, and that rate is not
  subject to Section 26.07, Tax Code.  The board shall adopt the tax
  rate as provided by Chapter 26, Tax Code.
         (f)  Notwithstanding any other law, if at least two-thirds [a
  majority] of the votes cast in the election favor the proposition, a
  governing body with approval authority over the district's budget
  or tax rate may not disapprove the tax rate approved by the voters
  or disapprove the budget based solely on the tax rate approved by
  the voters.
         SECTION 2.  Section 1101.254(f), Special District Local Laws
  Code, is amended to read as follows:
         (f)  This section does not affect the applicability of
  Section 26.07, Tax Code, to the district's tax rate, except that if
  at least two-thirds of the district voters approve a tax rate
  increase under this section, Section 26.07, Tax Code, does not
  apply to the tax rate for that year.
         SECTION 3.  Sections 26.06(b-1) and (b-3), Tax Code, are
  amended to read as follows:
         (b-1)  If the proposed tax rate exceeds the no-new-revenue
  tax rate and the voter-approval tax rate of the taxing unit, the
  notice must contain a statement in the following form:
  "NOTICE OF PUBLIC HEARING ON TAX INCREASE
         "PROPOSED TAX RATE            $__________ per $100
         "NO-NEW-REVENUE TAX RATE      $__________ per $100
         "VOTER-APPROVAL TAX RATE      $__________ per $100
         "The no-new-revenue tax rate is the tax rate for the (current
  tax year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The voter-approval tax rate is the highest tax rate that
  (name of taxing unit) may adopt without holding an election to seek
  voter approval of the rate.
         "The proposed tax rate is greater than the no-new-revenue tax
  rate.  This means that (name of taxing unit) is proposing to
  increase property taxes for the (current tax year) tax year.
         "A public hearing on the proposed tax rate will be held on
  (date and time) at (meeting place).
         "The proposed tax rate is also greater than the
  voter-approval tax rate.  If (name of taxing unit) adopts the
  proposed tax rate, (name of taxing unit) is required to hold an
  election so that the voters may accept or reject the proposed tax
  rate.  Unless at least two-thirds [If a majority] of the voters
  accept [reject] the proposed tax rate, the tax rate of the (name of
  taxing unit) will be the voter-approval tax rate.  The election will
  be held on (date of election).  You may contact the (name of office
  responsible for administering the election) for information about
  voting locations.  The hours of voting on election day are (voting
  hours).
         "Your taxes owed under any of the tax rates mentioned above
  can be calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax increase or, if one
  or more were absent, indicating the absences.)
         "Visit Texas.gov/PropertyTaxes to find a link to your local
  property tax database on which you can easily access information
  regarding your property taxes, including information about
  proposed tax rates and scheduled public hearings of each entity
  that taxes your property.
         "The 86th Texas Legislature modified the manner in which the
  voter-approval tax rate is calculated to limit the rate of growth of
  property taxes in the state."
         (b-3)  If the proposed tax rate does not exceed the
  no-new-revenue tax rate but exceeds the voter-approval tax rate of
  the taxing unit, the notice must contain a statement in the
  following form:
  "NOTICE OF PUBLIC HEARING ON TAX RATE
         "PROPOSED TAX RATE            $__________ per $100
         "NO-NEW-REVENUE TAX RATE      $__________ per $100
         "VOTER-APPROVAL TAX RATE      $__________ per $100
         "The no-new-revenue tax rate is the tax rate for the (current
  tax year) tax year that will raise the same amount of property tax
  revenue for (name of taxing unit) from the same properties in both
  the (preceding tax year) tax year and the (current tax year) tax
  year.
         "The voter-approval tax rate is the highest tax rate that
  (name of taxing unit) may adopt without holding an election to seek
  voter approval of the rate.
         "The proposed tax rate is not greater than the no-new-revenue
  tax rate.  This means that (name of taxing unit) is not proposing to
  increase property taxes for the (current tax year) tax year.
         "A public hearing on the proposed tax rate will be held on
  (date and time) at (meeting place).
         "The proposed tax rate is greater than the voter-approval tax
  rate.  If (name of taxing unit) adopts the proposed tax rate, (name
  of taxing unit) is required to hold an election so that the voters
  may accept or reject the proposed tax rate.  Unless at least
  two-thirds [If a majority] of the voters accept [reject] the
  proposed tax rate, the tax rate of the (name of taxing unit) will be
  the voter-approval tax rate.  The election will be held on (date of
  election).  You may contact the (name of office responsible for
  administering the election) for information about voting
  locations.  The hours of voting on election day are (voting hours).
         "Your taxes owed under any of the tax rates mentioned above
  can be calculated as follows:
         "Property tax amount = tax rate x taxable value of your
  property / 100
         "(Names of all members of the governing body, showing how
  each voted on the proposal to consider the tax rate or, if one or
  more were absent, indicating the absences.)
         "Visit Texas.gov/PropertyTaxes to find a link to your local
  property tax database on which you can easily access information
  regarding your property taxes, including information about
  proposed tax rates and scheduled public hearings of each entity
  that taxes your property.
         "The 86th Texas Legislature modified the manner in which the
  voter-approval tax rate is calculated to limit the rate of growth of
  property taxes in the state."
         SECTION 4.  Section 26.063(b), Tax Code, is amended to read
  as follows:
         (b)  This subsection applies only to a taxing unit that is
  required to hold an election under Section 26.07.  In the notice
  required to be provided by the taxing unit under Section 26.06(b-1)
  or (b-3), as applicable, the taxing unit shall:
               (1)  add the following to the end of the list of rates
  included in the notice:
         "DE MINIMIS RATE          $__________ per $100";
               (2)  substitute the following for the definition of
  "voter-approval tax rate":  "The voter-approval tax rate is the
  highest tax rate that (name of taxing unit) may adopt without
  holding an election to seek voter approval of the rate, unless the
  de minimis rate for (name of taxing unit) exceeds the
  voter-approval tax rate for (name of taxing unit).";
               (3)  add the following definition of "de minimis rate":  
  "The de minimis rate is the rate equal to the sum of the
  no-new-revenue maintenance and operations rate for (name of taxing
  unit), the rate that will raise $500,000, and the current debt rate
  for (name of taxing unit)."; and
               (4)  substitute the following for the provision that
  provides notice that an election is required: "The proposed tax
  rate is greater than the voter-approval tax rate and the de minimis
  rate.  If (name of taxing unit) adopts the proposed tax rate, (name
  of taxing unit) is required to hold an election so that the voters
  may accept or reject the proposed tax rate.  Unless at least
  two-thirds [If a majority] of the voters accept [reject] the
  proposed tax rate, the tax rate of the (name of taxing unit) will be
  the voter-approval tax rate of the (name of taxing unit).  The
  election will be held on (date of election).  You may contact the
  (name of office responsible for administering the election) for
  information about voting locations.  The hours of voting on
  election day are (voting hours).".
         SECTION 5.  Section 26.07(d), Tax Code, is amended to read as
  follows:
         (d)  If at least two-thirds [a majority] of the votes cast in
  the election favor the proposition, the tax rate for the current
  year is the rate that was adopted by the governing body.
         SECTION 6.  Section 26.08(c), Tax Code, is amended to read as
  follows:
         (c)  If at least two-thirds [a majority] of the votes cast in
  the election favor the proposition, the tax rate for the current
  year is the rate that was adopted by the governing body.
         SECTION 7.  The changes in law made by this Act apply only to
  an election held on or after the effective date of this Act.  An
  election held before the effective date of this Act is governed by
  the law in effect on the date the election was held, and that law is
  continued in effect for that purpose.
         SECTION 8.  This Act takes effect January 1, 2026.