Bill > HB763

This bill repeals provisions that previously allowed certain taxing units (like local governments and school districts) to adopt a higher property tax rate (ad valorem tax rate) in the year following a disaster without requiring voter approval. Specifically, the bill eliminates sections of law that permitted taxing units to exceed the voter-approval tax rate (a tax rate limit that typically requires voter consent to exceed) in the aftermath of a disaster declaration. The changes mean that taxing units will no longer be able to automatically increase property tax rates after a disaster without holding an election. The bill modifies language in the Education Code and Tax Code to remove references to these disaster-related tax rate exceptions, effectively standardizing tax rate calculations and requiring voter approval for tax increases, even in post-disaster scenarios. The bill will apply to property taxes imposed for tax years beginning on or after its effective date of January 1, 2026, ensuring that local governments will need to seek voter approval for tax rate increases that previously could have been implemented without an election.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB763