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.