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