bill raising the vote for tax hikes to 75 percent

The text as introduced · 728 words

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.