Texas House Bill HB60

Texas 2025 - 89th 1st C.S.

• Filed: 7/14/25

Caption

Relating to the vote required by the governing body of a taxing unit to adopt an ad valorem tax rate that exceeds the voter-approval tax rate or authorize the issuance of tax bonds.

Impact

If enacted, HB60 will require political subdivisions to secure a heightened level of agreement before proceeding with substantial financial commitments, such as the issuance of general obligation bonds. The restructuring of the voting requirements aims to enhance fiscal responsibility and ensure that taxpayers' interests are thoroughly considered before tax rates are increased. It is anticipated that this will lead to a more prudent approach to tax policy within local governments, directly affecting the financial decisions that impact local taxpayers.

Summary

House Bill 60 aims to modify the governance surrounding the adoption of ad valorem tax rates that exceed the voter-approval tax rate and the issuance of tax bonds. It stipulates that a taxing unit cannot adopt a tax rate that exceeds the voter-approval rate unless a supermajority vote—defined as at least 80%—of the governing body members is achieved. This change targets the efficacy and accountability in the tax rate-setting process, ensuring that significant financial decisions reflect a broad consensus among governing body members.

Contention

The bill has generated discussion regarding the implications of requiring a supermajority for tax-related votes. Supporters argue that this measure promotes transparency and prevents any single party from unilaterally imposing tax increases without broad support. Opponents, however, worry that such a requirement may hinder the ability of local governments to respond promptly to financial needs and obligations, potentially stalling essential services or projects that would benefit the community. The underlying debate centers on balancing responsible fiscal governance with responsive and effective local administration.

Texas Constitutional Statutes Affected

Government Code

• Chapter 1253. General Obligation Bonds Issued By Political Subdivisions
  • Section: New Section

Tax Code

• Chapter 26. Assessment
  • Section: New Section

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: New Section