89S20932 CS-F     By: Swanson H.B. No. 301       A BILL TO BE ENTITLED   AN ACT   relating to the vote required in an election to approve an ad   valorem tax rate that exceeds a taxing unit's voter-approval tax   rate; making conforming changes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 281.124(d) and (f), Health and Safety   Code, are amended to read as follows:          (d)  If at least two-thirds [a majority] of the votes cast in   the election favor the proposition, the tax rate for the specified   tax year is the rate approved by the voters, and that rate is not   subject to Section 26.07, Tax Code. The board shall adopt the tax   rate as provided by Chapter 26, Tax Code.          (f)  Notwithstanding any other law, if at least two-thirds [a   majority] of the votes cast in the election favor the proposition, a   governing body with approval authority over the district's budget   or tax rate may not disapprove the tax rate approved by the voters   or disapprove the budget based solely on the tax rate approved by   the voters.          SECTION 2.  Section 1101.254(f), Special District Local Laws   Code, is amended to read as follows:          (f)  This section does not affect the applicability of   Section 26.07, Tax Code, to the district's tax rate, except that if   at least two-thirds of the district voters approve a tax rate   increase under this section, Section 26.07, Tax Code, does not   apply to the tax rate for that year.          SECTION 3.  Sections 26.06(b-1) and (b-3), Tax Code, are   amended to read as follows:          (b-1)  If the proposed tax rate exceeds the no-new-revenue   tax rate and the voter-approval tax rate of the taxing unit, the   notice must contain a statement in the following form:   "NOTICE OF PUBLIC HEARING ON TAX INCREASE          "PROPOSED TAX RATE            $__________ per $100          "NO-NEW-REVENUE TAX RATE      $__________ per $100          "VOTER-APPROVAL TAX RATE      $__________ per $100          "The no-new-revenue tax rate is the tax rate for the (current   tax year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The voter-approval tax rate is the highest tax rate that   (name of taxing unit) may adopt without holding an election to seek   voter approval of the rate.          "The proposed tax rate is greater than the no-new-revenue tax   rate. This means that (name of taxing unit) is proposing to   increase property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "The proposed tax rate is also greater than the   voter-approval tax rate. If (name of taxing unit) adopts the   proposed tax rate, (name of taxing unit) is required to hold an   election so that the voters may accept or reject the proposed tax   rate. Unless at least two-thirds [If a majority] of the voters   accept [reject] the proposed tax rate, the tax rate of the (name of   taxing unit) will be the voter-approval tax rate. The election will   be held on (date of election). You may contact the (name of office   responsible for administering the election) for information about   voting locations. The hours of voting on election day are (voting   hours).          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(Names of all members of the governing body, showing how   each voted on the proposal to consider the tax increase or, if one   or more were absent, indicating the absences.)          "Visit Texas.gov/PropertyTaxes to find a link to your local   property tax database on which you can easily access information   regarding your property taxes, including information about   proposed tax rates and scheduled public hearings of each entity   that taxes your property.          "The 86th Texas Legislature modified the manner in which the   voter-approval tax rate is calculated to limit the rate of growth of   property taxes in the state."          (b-3)  If the proposed tax rate does not exceed the   no-new-revenue tax rate but exceeds the voter-approval tax rate of   the taxing unit, the notice must contain a statement in the   following form:   "NOTICE OF PUBLIC HEARING ON TAX RATE          "PROPOSED TAX RATE            $__________ per $100          "NO-NEW-REVENUE TAX RATE      $__________ per $100          "VOTER-APPROVAL TAX RATE      $__________ per $100          "The no-new-revenue tax rate is the tax rate for the (current   tax year) tax year that will raise the same amount of property tax   revenue for (name of taxing unit) from the same properties in both   the (preceding tax year) tax year and the (current tax year) tax   year.          "The voter-approval tax rate is the highest tax rate that   (name of taxing unit) may adopt without holding an election to seek   voter approval of the rate.          "The proposed tax rate is not greater than the no-new-revenue   tax rate. This means that (name of taxing unit) is not proposing to   increase property taxes for the (current tax year) tax year.          "A public hearing on the proposed tax rate will be held on   (date and time) at (meeting place).          "The proposed tax rate is greater than the voter-approval tax   rate. If (name of taxing unit) adopts the proposed tax rate, (name   of taxing unit) is required to hold an election so that the voters   may accept or reject the proposed tax rate. Unless at least   two-thirds [If a majority] of the voters accept [reject] the   proposed tax rate, the tax rate of the (name of taxing unit) will be   the voter-approval tax rate. The election will be held on (date of   election). You may contact the (name of office responsible for   administering the election) for information about voting   locations. The hours of voting on election day are (voting hours).          "Your taxes owed under any of the tax rates mentioned above   can be calculated as follows:          "Property tax amount = tax rate x taxable value of your   property / 100          "(Names of all members of the governing body, showing how   each voted on the proposal to consider the tax rate or, if one or   more were absent, indicating the absences.)          "Visit Texas.gov/PropertyTaxes to find a link to your local   property tax database on which you can easily access information   regarding your property taxes, including information about   proposed tax rates and scheduled public hearings of each entity   that taxes your property.          "The 86th Texas Legislature modified the manner in which the   voter-approval tax rate is calculated to limit the rate of growth of   property taxes in the state."          SECTION 4.  Section 26.063(b), Tax Code, is amended to read   as follows:          (b)  This subsection applies only to a taxing unit that is   required to hold an election under Section 26.07.  In the notice   required to be provided by the taxing unit under Section 26.06(b-1)   or (b-3), as applicable, the taxing unit shall:                (1)  add the following to the end of the list of rates   included in the notice:          "DE MINIMIS RATE          $__________ per $100";                (2)  substitute the following for the definition of   "voter-approval tax rate":  "The voter-approval tax rate is the   highest tax rate that (name of taxing unit) may adopt without   holding an election to seek voter approval of the rate, unless the   de minimis rate for (name of taxing unit) exceeds the   voter-approval tax rate for (name of taxing unit).";                (3)  add the following definition of "de minimis rate":     "The de minimis rate is the rate equal to the sum of the   no-new-revenue maintenance and operations rate for (name of taxing   unit), the rate that will raise $500,000, and the current debt rate   for (name of taxing unit)."; and                (4)  substitute the following for the provision that   provides notice that an election is required: "The proposed tax   rate is greater than the voter-approval tax rate and the de minimis   rate.  If (name of taxing unit) adopts the proposed tax rate, (name   of taxing unit) is required to hold an election so that the voters   may accept or reject the proposed tax rate.  Unless at least   two-thirds [If a majority] of the voters accept [reject] the   proposed tax rate, the tax rate of the (name of taxing unit) will be   the voter-approval tax rate of the (name of taxing unit).  The   election will be held on (date of election).  You may contact the   (name of office responsible for administering the election) for   information about voting locations.  The hours of voting on   election day are (voting hours).".          SECTION 5.  Section 26.07(d), Tax Code, is amended to read as   follows:          (d)  If at least two-thirds [a majority] of the votes cast in   the election favor the proposition, the tax rate for the current   year is the rate that was adopted by the governing body.          SECTION 6.  Section 26.08(c), Tax Code, is amended to read as   follows:          (c)  If at least two-thirds [a majority] of the votes cast in   the election favor the proposition, the tax rate for the current   year is the rate that was adopted by the governing body.          SECTION 7.  The changes in law made by this Act apply only to   an election held on or after the effective date of this Act.  An   election held before the effective date of this Act is governed by   the law in effect on the date the election was held, and that law is   continued in effect for that purpose.          SECTION 8.  This Act takes effect January 1, 2026.