Texas 2025 - 89th Regular

Texas House Bill HB5490 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R12978 RDS-F
2	2	By: Troxclair H.B. No. 5490
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the requirements regarding an election to authorize the
10	10	issuance of general obligation bonds or to approve an increase in an
11	11	ad valorem tax rate.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subchapter A, Chapter 41, Election Code, is
14	14	amended by adding Section 41.0051 to read as follows:
15	15	Sec. 41.0051. ELECTION TO ISSUE BONDS OR INCREASE AD
16	16	VALOREM TAX RATE. (a) An election to authorize the issuance of
17	17	general obligation bonds or to approve an increase in an ad valorem
18	18	tax rate shall be held on the November uniform election date.
19	19	(b) Notwithstanding Section 41.0011, an election described
20	20	by Subsection (a) may not be held as an emergency election under
21	21	that section.
22	22	(c) If a law outside this code requires an election
23	23	described by Subsection (a) to be held on a date other than the
24	24	November uniform election date, the authority administering the
25	25	election shall set the election date to comply with this section.
26	26	SECTION 2. Chapter 1253, Government Code, is amended by
27	27	adding Section 1253.004 to read as follows:
28	28	Sec. 1253.004. SUPERMAJORITY VOTE OF VOTERS REQUIRED TO
29	29	APPROVE GENERAL OBLIGATION BONDS. Notwithstanding any other law, a
30	30	political subdivision may not issue general obligation bonds unless
31	31	at least two-thirds of the voters voting at the election called to
32	32	authorize the issuance vote in favor of the issuance.
33	33	SECTION 3. Sections 281.124(d) and (f), Health and Safety
34	34	Code, are amended to read as follows:
35	35	(d) If at least two-thirds [a majority] of the votes cast in
36	36	the election favor the proposition, the tax rate for the specified
37	37	tax year is the rate approved by the voters, and that rate is not
38	38	subject to Section 26.07, Tax Code. The board shall adopt the tax
39	39	rate as provided by Chapter 26, Tax Code.
40	40	(f) Notwithstanding any other law, if at least two-thirds [a
41	41	majority] of the votes cast in the election favor the proposition, a
42	42	governing body with approval authority over the district's budget
43	43	or tax rate may not disapprove the tax rate approved by the voters
44	44	or disapprove the budget based solely on the tax rate approved by
45	45	the voters.
46	46	SECTION 4. Section 1101.254(f), Special District Local Laws
47	47	Code, is amended to read as follows:
48	48	(f) This section does not affect the applicability of
49	49	Section 26.07, Tax Code, to the district's tax rate, except that if
50	50	at least two-thirds of the district voters approve a tax rate
51	51	increase under this section, Section 26.07, Tax Code, does not
52	52	apply to the tax rate for that year.
53	53	SECTION 5. Sections 26.06(b-1) and (b-3), Tax Code, are
54	54	amended to read as follows:
55	55	(b-1) If the proposed tax rate exceeds the no-new-revenue
56	56	tax rate and the voter-approval tax rate of the taxing unit, the
57	57	notice must contain a statement in the following form:
58	58	"NOTICE OF PUBLIC HEARING ON TAX INCREASE
59	59	"PROPOSED TAX RATE $__________ per $100
60	60	"NO-NEW-REVENUE TAX RATE $__________ per $100
61	61	"VOTER-APPROVAL TAX RATE $__________ per $100
62	62	"The no-new-revenue tax rate is the tax rate for the (current
63	63	tax year) tax year that will raise the same amount of property tax
64	64	revenue for (name of taxing unit) from the same properties in both
65	65	the (preceding tax year) tax year and the (current tax year) tax
66	66	year.
67	67	"The voter-approval tax rate is the highest tax rate that
68	68	(name of taxing unit) may adopt without holding an election to seek
69	69	voter approval of the rate.
70	70	"The proposed tax rate is greater than the no-new-revenue tax
71	71	rate. This means that (name of taxing unit) is proposing to
72	72	increase property taxes for the (current tax year) tax year.
73	73	"A public hearing on the proposed tax rate will be held on
74	74	(date and time) at (meeting place).
75	75	"The proposed tax rate is also greater than the
76	76	voter-approval tax rate. If (name of taxing unit) adopts the
77	77	proposed tax rate, (name of taxing unit) is required to hold an
78	78	election so that the voters may accept or reject the proposed tax
79	79	rate. Unless at least two-thirds [If a majority] of the voters
80	80	accept [reject] the proposed tax rate, the tax rate of the (name of
81	81	taxing unit) will be the voter-approval tax rate. The election will
82	82	be held on (date of election). You may contact the (name of office
83	83	responsible for administering the election) for information about
84	84	voting locations. The hours of voting on election day are (voting
85	85	hours).
86	86	"Your taxes owed under any of the tax rates mentioned above
87	87	can be calculated as follows:
88	88	"Property tax amount = tax rate x taxable value of your
89	89	property / 100
90	90	"(Names of all members of the governing body, showing how
91	91	each voted on the proposal to consider the tax increase or, if one
92	92	or more were absent, indicating the absences.)
93	93	"Visit Texas.gov/PropertyTaxes to find a link to your local
94	94	property tax database on which you can easily access information
95	95	regarding your property taxes, including information about
96	96	proposed tax rates and scheduled public hearings of each entity
97	97	that taxes your property.
98	98	"The 86th Texas Legislature modified the manner in which the
99	99	voter-approval tax rate is calculated to limit the rate of growth of
100	100	property taxes in the state."
101	101	(b-3) If the proposed tax rate does not exceed the
102	102	no-new-revenue tax rate but exceeds the voter-approval tax rate of
103	103	the taxing unit, the notice must contain a statement in the
104	104	following form:
105	105	"NOTICE OF PUBLIC HEARING ON TAX RATE
106	106	"PROPOSED TAX RATE $__________ per $100
107	107	"NO-NEW-REVENUE TAX RATE $__________ per $100
108	108	"VOTER-APPROVAL TAX RATE $__________ per $100
109	109	"The no-new-revenue tax rate is the tax rate for the (current
110	110	tax year) tax year that will raise the same amount of property tax
111	111	revenue for (name of taxing unit) from the same properties in both
112	112	the (preceding tax year) tax year and the (current tax year) tax
113	113	year.
114	114	"The voter-approval tax rate is the highest tax rate that
115	115	(name of taxing unit) may adopt without holding an election to seek
116	116	voter approval of the rate.
117	117	"The proposed tax rate is not greater than the no-new-revenue
118	118	tax rate. This means that (name of taxing unit) is not proposing to
119	119	increase property taxes for the (current tax year) tax year.
120	120	"A public hearing on the proposed tax rate will be held on
121	121	(date and time) at (meeting place).
122	122	"The proposed tax rate is greater than the voter-approval tax
123	123	rate. If (name of taxing unit) adopts the proposed tax rate, (name
124	124	of taxing unit) is required to hold an election so that the voters
125	125	may accept or reject the proposed tax rate. Unless at least
126	126	two-thirds [If a majority] of the voters accept [reject] the
127	127	proposed tax rate, the tax rate of the (name of taxing unit) will be
128	128	the voter-approval tax rate. The election will be held on (date of
129	129	election). You may contact the (name of office responsible for
130	130	administering the election) for information about voting
131	131	locations. The hours of voting on election day are (voting hours).
132	132	"Your taxes owed under any of the tax rates mentioned above
133	133	can be calculated as follows:
134	134	"Property tax amount = tax rate x taxable value of your
135	135	property / 100
136	136	"(Names of all members of the governing body, showing how
137	137	each voted on the proposal to consider the tax rate or, if one or
138	138	more were absent, indicating the absences.)
139	139	"Visit Texas.gov/PropertyTaxes to find a link to your local
140	140	property tax database on which you can easily access information
141	141	regarding your property taxes, including information about
142	142	proposed tax rates and scheduled public hearings of each entity
143	143	that taxes your property.
144	144	"The 86th Texas Legislature modified the manner in which the
145	145	voter-approval tax rate is calculated to limit the rate of growth of
146	146	property taxes in the state."
147	147	SECTION 6. Section 26.063(b), Tax Code, is amended to read
148	148	as follows:
149	149	(b) This subsection applies only to a taxing unit that is
150	150	required to hold an election under Section 26.07. In the notice
151	151	required to be provided by the taxing unit under Section 26.06(b-1)
152	152	or (b-3), as applicable, the taxing unit shall:
153	153	(1) add the following to the end of the list of rates
154	154	included in the notice:
155	155	"DE MINIMIS RATE $__________ per $100";
156	156	(2) substitute the following for the definition of
157	157	"voter-approval tax rate": "The voter-approval tax rate is the
158	158	highest tax rate that (name of taxing unit) may adopt without
159	159	holding an election to seek voter approval of the rate, unless the
160	160	de minimis rate for (name of taxing unit) exceeds the
161	161	voter-approval tax rate for (name of taxing unit).";
162	162	(3) add the following definition of "de minimis rate":
163	163	"The de minimis rate is the rate equal to the sum of the
164	164	no-new-revenue maintenance and operations rate for (name of taxing
165	165	unit), the rate that will raise $500,000, and the current debt rate
166	166	for (name of taxing unit)."; and
167	167	(4) substitute the following for the provision that
168	168	provides notice that an election is required: "The proposed tax
169	169	rate is greater than the voter-approval tax rate and the de minimis
170	170	rate. If (name of taxing unit) adopts the proposed tax rate, (name
171	171	of taxing unit) is required to hold an election so that the voters
172	172	may accept or reject the proposed tax rate. Unless at least
173	173	two-thirds [If a majority] of the voters accept [reject] the
174	174	proposed tax rate, the tax rate of the (name of taxing unit) will be
175	175	the voter-approval tax rate of the (name of taxing unit). The
176	176	election will be held on (date of election). You may contact the
177	177	(name of office responsible for administering the election) for
178	178	information about voting locations. The hours of voting on
179	179	election day are (voting hours).".
180	180	SECTION 7. Section 26.07(d), Tax Code, is amended to read as
181	181	follows:
182	182	(d) If at least two-thirds [a majority] of the votes cast in
183	183	the election favor the proposition, the tax rate for the current
184	184	year is the rate that was adopted by the governing body.
185	185	SECTION 8. Section 26.08(c), Tax Code, is amended to read as
186	186	follows:
187	187	(c) If at least two-thirds [a majority] of the votes cast in
188	188	the election favor the proposition, the tax rate for the current
189	189	year is the rate that was adopted by the governing body.
190	190	SECTION 9. The changes in law made by this Act apply only to
191	191	an election ordered on or after the effective date of this Act. An
192	192	election ordered before the effective date of this Act is governed
193	193	by the law in effect on the date the election was ordered, and that
194	194	law is continued in effect for that purpose.
195	195	SECTION 10. (a) Except as provided by Subsection (b) of this
196	196	section, this Act takes effect January 1, 2026.
197	197	(b) Section 2 of this Act takes effect January 1, 2026, but
198	198	only if the constitutional amendment proposed by the 89th
199	199	Legislature, Regular Session, 2025, to require a supermajority vote
200	200	to authorize a political subdivision to issue general obligation
201	201	bonds is approved by the voters. If that amendment is not approved
202	202	by the voters, Section 2 of this Act has no effect.