By Park H.B. No. 2025
74R4708 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to voter approval of the imposition or increase of a state
1-3 or local tax.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 101, Tax Code, is amended by adding
1-6 Section 101.110 to read as follows:
1-7 Sec. 101.110. VOTER APPROVAL OF STATEWIDE TAX. (a) A
1-8 general law enacted by the legislature that imposes a new tax that
1-9 has statewide application may not take effect until approved by a
1-10 majority of the registered voters voting in a statewide referendum
1-11 held on the question of imposing the tax. The referendum must
1-12 describe the tax and specify the rate of the tax.
1-13 (b) A general law enacted by the legislature that increases
1-14 the rate of a tax that has statewide application, or changes the
1-15 tax, in a manner that results in an increase in the combined tax
1-16 liability of all persons subject to the tax may not take effect
1-17 until approved by a majority of the registered voters voting in a
1-18 statewide referendum held on the question of increasing the tax.
1-19 The referendum must describe the tax and specify the manner in
1-20 which the proposed law would increase the combined tax liability of
1-21 all persons subject to the tax.
1-22 SECTION 2. Chapter 301, Tax Code, is amended by adding
1-23 Section 301.005 to read as follows:
1-24 Sec. 301.005. IMPOSITION OR INCREASE OF LOCAL TAX. (a) A
2-1 political subdivision of this state may not impose a new tax unless
2-2 the tax is approved by a majority of the registered voters of that
2-3 political subdivision voting in an election held on the question of
2-4 imposing the tax. The election ballot must describe the tax and
2-5 specify the rate of the tax.
2-6 (b) A political subdivision of this state may not increase
2-7 the rate of a tax, other than an ad valorem tax, or change the tax,
2-8 in a manner that results in an increase in the combined tax
2-9 liability of all persons subject to the tax in that political
2-10 subdivision unless the increase or change is approved by a majority
2-11 of the registered voters of that political subdivision voting in an
2-12 election held on the question of increasing the tax. The election
2-13 ballot must describe the tax and specify the manner in which the
2-14 proposed change would increase the combined tax liability of all
2-15 persons subject to the tax.
2-16 (c) An election under this section must be held on a uniform
2-17 election date. At least 30 days before the date of the election,
2-18 the political subdivision shall send to each registered voter in
2-19 the political subdivision information relating to the issue that
2-20 contains a summary of the arguments for and against the issue.
2-21 (d) A political subdivision may impose or increase a tax in
2-22 an emergency, and only for the period of the emergency, if the
2-23 imposition or increase is approved by a vote of two-thirds of the
2-24 governing body of the political subdivision. The imposition or
2-25 change must be voted on at the next uniform election date that
2-26 occurs at least 45 days after the emergency action. If the
2-27 emergency action is not approved at the election, the political
3-1 subdivision may not continue to impose the tax or collect the
3-2 increased amount.
3-3 (e) This section applies to any tax imposed by a political
3-4 subdivision of this state, other than an ad valorem tax, regardless
3-5 of whether the law authorizing the imposition of this tax is
3-6 governed by this code.
3-7 (f) Section 26.055 applies to the increase of an ad valorem
3-8 tax.
3-9 SECTION 3. Chapter 26, Tax Code, is amended by adding
3-10 Section 26.055 to read as follows:
3-11 Sec. 26.055. INCREASE OF AD VALOREM TAX. (a) An increase
3-12 in the effective rate of an ad valorem tax that results in an
3-13 increase in the total tax revenues from property on the tax roll in
3-14 the preceding year or the elimination or a reduction of an
3-15 exemption in a manner that results in an increase in the total ad
3-16 valorem tax liability of a person subject to the exemption in that
3-17 taxing unit may not take effect unless the increase or exemption
3-18 change is approved by a majority of the registered voters of that
3-19 taxing unit voting in an election held on the question of
3-20 increasing the tax or changing the exemption. The election may be
3-21 held before or after the governing body officially adopts the tax
3-22 rate or changes the exemption. The election ballot must describe
3-23 the tax and specify the rate of the tax or the manner in which the
3-24 proposed change to the exemption would increase the total ad
3-25 valorem tax liability of persons subject to the exemption.
3-26 (b) An election under this section must be held on a uniform
3-27 election date. At least 30 days before the date of the election,
4-1 the taxing unit shall send to each registered voter in the taxing
4-2 unit information relating to the issue that contains a summary of
4-3 the arguments for and against the issue.
4-4 (c) A taxing unit may determine that an emergency exists and
4-5 provide that an increase in the effective tax rate or a change in
4-6 an exemption take effect if the increase or change is approved by a
4-7 vote of two-thirds of the governing body of the taxing unit. The
4-8 increase or change must be voted on at the next uniform election
4-9 date that occurs at least 45 days after the emergency action. If
4-10 the emergency action is not approved at the election, the taxing
4-11 unit shall immediately repeal the emergency action and may not
4-12 continue to collect the tax at the increased rate or collect the
4-13 increased amount.
4-14 SECTION 4. Sections 26.045, 26.07, 26.08, and 26.085, Tax
4-15 Code, are repealed.
4-16 SECTION 5. The importance of this legislation and the
4-17 crowded condition of the calendars in both houses create an
4-18 emergency and an imperative public necessity that the
4-19 constitutional rule requiring bills to be read on three several
4-20 days in each house be suspended, and this rule is hereby suspended,
4-21 and that this Act take effect and be in force from and after its
4-22 passage, and it is so enacted.