89R15025 DRS-D
By: Bettencourt S.B. No. 2478
A BILL TO BE ENTITLED
AN ACT
relating to the vote required by the governing body of a political
subdivision to adopt an ad valorem tax rate that exceeds the
no-new-revenue tax rate or to authorize the issuance of tax bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1253, Government Code, is amended by
adding Section 1253.004 to read as follows:
Sec. 1253.004. SUPERMAJORITY VOTE OF GOVERNING BODY
REQUIRED TO APPROVE GENERAL OBLIGATION BONDS. Notwithstanding any
other law, a political subdivision may not issue general obligation
bonds unless at least 75 percent of the members of the governing
body of the political subdivision vote in favor of issuing the bonds
in the manner prescribed by law for official action by the governing
body.
SECTION 2. Section 26.05(b), Tax Code, is amended to read as
follows:
(b) A taxing unit may not impose property taxes in any year
until the governing body has adopted a tax rate for that year, and
the annual tax rate must be set by ordinance, resolution, or order,
depending on the method prescribed by law for adoption of a law by
the governing body. The vote on the ordinance, resolution, or order
setting the tax rate must be separate from the vote adopting the
budget. For a taxing unit other than a school district, the vote on
the ordinance, resolution, or order setting a tax rate that exceeds
the no-new-revenue tax rate must be a record vote, and at least 75
[60] percent of the members of the governing body must vote in favor
of the ordinance, resolution, or order. For a school district, the
vote on the ordinance, resolution, or order setting a tax rate that
exceeds the rate calculated as provided by Section
44.004(c)(5)(A)(ii), Education Code, must be a record vote, and at
least 75 [60] percent of the members of the governing body must vote
in favor of the ordinance, resolution, or order. A motion to adopt
an ordinance, resolution, or order setting a tax rate that exceeds
the no-new-revenue tax rate must be made in the following form: "I
move that the property tax rate be increased by the adoption of a
tax rate of (specify tax rate), which is effectively a (insert
percentage by which the proposed tax rate exceeds the
no-new-revenue tax rate) percent increase in the tax rate." If the
ordinance, resolution, or order sets a tax rate that, if applied to
the total taxable value, will impose an amount of taxes to fund
maintenance and operation expenditures of the taxing unit that
exceeds the amount of taxes imposed for that purpose in the
preceding year, the taxing unit must:
(1) include in the ordinance, resolution, or order in
type larger than the type used in any other portion of the document:
(A) the following statement: "THIS TAX RATE WILL
RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S
TAX RATE."; and
(B) if the tax rate exceeds the no-new-revenue
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."; and
(2) include on the home page of the Internet website of
the taxing unit:
(A) the following statement: "(Insert name of
taxing unit) ADOPTED A TAX RATE THAT WILL RAISE MORE TAXES FOR
MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE"; and
(B) if the tax rate exceeds the no-new-revenue
maintenance and operations rate, the following statement: "THE TAX
RATE WILL EFFECTIVELY BE RAISED BY (INSERT PERCENTAGE BY WHICH THE
TAX RATE EXCEEDS THE NO-NEW-REVENUE MAINTENANCE AND OPERATIONS
RATE) PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS
ON A $100,000 HOME BY APPROXIMATELY $(Insert amount)."
SECTION 3. Section 1253.004, Government Code, as added by
this Act, applies only to general obligation bonds authorized to be
issued by the governing body of a political subdivision on or after
the effective date of this Act.
SECTION 4. Section 26.05(b), Tax Code, as amended by this
Act, applies only to a tax year that begins on or after the
effective date of this Act.
SECTION 5. This Act takes effect January 1, 2026.