| 1 | 1 | | 89R15025 DRS-D |
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| 2 | 2 | | By: Bettencourt S.B. No. 2478 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the vote required by the governing body of a political |
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| 10 | 10 | | subdivision to adopt an ad valorem tax rate that exceeds the |
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| 11 | 11 | | no-new-revenue tax rate or to authorize the issuance of tax bonds. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Chapter 1253, Government Code, is amended by |
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| 14 | 14 | | adding Section 1253.004 to read as follows: |
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| 15 | 15 | | Sec. 1253.004. SUPERMAJORITY VOTE OF GOVERNING BODY |
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| 16 | 16 | | REQUIRED TO APPROVE GENERAL OBLIGATION BONDS. Notwithstanding any |
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| 17 | 17 | | other law, a political subdivision may not issue general obligation |
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| 18 | 18 | | bonds unless at least 75 percent of the members of the governing |
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| 19 | 19 | | body of the political subdivision vote in favor of issuing the bonds |
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| 20 | 20 | | in the manner prescribed by law for official action by the governing |
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| 21 | 21 | | body. |
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| 22 | 22 | | SECTION 2. Section 26.05(b), Tax Code, is amended to read as |
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| 23 | 23 | | follows: |
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| 24 | 24 | | (b) A taxing unit may not impose property taxes in any year |
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| 25 | 25 | | until the governing body has adopted a tax rate for that year, and |
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| 26 | 26 | | the annual tax rate must be set by ordinance, resolution, or order, |
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| 27 | 27 | | depending on the method prescribed by law for adoption of a law by |
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| 28 | 28 | | the governing body. The vote on the ordinance, resolution, or order |
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| 29 | 29 | | setting the tax rate must be separate from the vote adopting the |
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| 30 | 30 | | budget. For a taxing unit other than a school district, the vote on |
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| 31 | 31 | | the ordinance, resolution, or order setting a tax rate that exceeds |
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| 32 | 32 | | the no-new-revenue tax rate must be a record vote, and at least 75 |
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| 33 | 33 | | [60] percent of the members of the governing body must vote in favor |
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| 34 | 34 | | of the ordinance, resolution, or order. For a school district, the |
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| 35 | 35 | | vote on the ordinance, resolution, or order setting a tax rate that |
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| 36 | 36 | | exceeds the rate calculated as provided by Section |
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| 37 | 37 | | 44.004(c)(5)(A)(ii), Education Code, must be a record vote, and at |
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| 38 | 38 | | least 75 [60] percent of the members of the governing body must vote |
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| 39 | 39 | | in favor of the ordinance, resolution, or order. A motion to adopt |
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| 40 | 40 | | an ordinance, resolution, or order setting a tax rate that exceeds |
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| 41 | 41 | | the no-new-revenue tax rate must be made in the following form: "I |
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| 42 | 42 | | move that the property tax rate be increased by the adoption of a |
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| 43 | 43 | | tax rate of (specify tax rate), which is effectively a (insert |
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| 44 | 44 | | percentage by which the proposed tax rate exceeds the |
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| 45 | 45 | | no-new-revenue tax rate) percent increase in the tax rate." If the |
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| 46 | 46 | | ordinance, resolution, or order sets a tax rate that, if applied to |
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| 47 | 47 | | the total taxable value, will impose an amount of taxes to fund |
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| 48 | 48 | | maintenance and operation expenditures of the taxing unit that |
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| 49 | 49 | | exceeds the amount of taxes imposed for that purpose in the |
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| 50 | 50 | | preceding year, the taxing unit must: |
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| 51 | 51 | | (1) include in the ordinance, resolution, or order in |
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| 52 | 52 | | type larger than the type used in any other portion of the document: |
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| 53 | 53 | | (A) the following statement: "THIS TAX RATE WILL |
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| 54 | 54 | | RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S |
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| 55 | 55 | | TAX RATE."; and |
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| 56 | 56 | | (B) if the tax rate exceeds the no-new-revenue |
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| 57 | 57 | | maintenance and operations rate, the following statement: "THE TAX |
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| 58 | 58 | | RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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| 59 | 59 | | TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS |
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| 60 | 60 | | RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS |
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| 61 | 61 | | ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and |
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| 62 | 62 | | (2) include on the home page of the Internet website of |
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| 63 | 63 | | the taxing unit: |
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| 64 | 64 | | (A) the following statement: "(Insert name of |
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| 65 | 65 | | taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR |
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| 66 | 66 | | MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and |
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| 67 | 67 | | (B) if the tax rate exceeds the no-new-revenue |
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| 68 | 68 | | maintenance and operations rate, the following statement: "THE TAX |
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| 69 | 69 | | RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE |
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| 70 | 70 | | TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS |
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| 71 | 71 | | RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS |
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| 72 | 72 | | ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)." |
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| 73 | 73 | | SECTION 3. Section 1253.004, Government Code, as added by |
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| 74 | 74 | | this Act, applies only to general obligation bonds authorized to be |
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| 75 | 75 | | issued by the governing body of a political subdivision on or after |
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| 76 | 76 | | the effective date of this Act. |
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| 77 | 77 | | SECTION 4. Section 26.05(b), Tax Code, as amended by this |
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| 78 | 78 | | Act, applies only to a tax year that begins on or after the |
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| 79 | 79 | | effective date of this Act. |
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| 80 | 80 | | SECTION 5. This Act takes effect January 1, 2026. |
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