Bill > HB3601

This bill modifies the calculation and approval process for property tax rates in Texas, primarily focusing on adjusting the voter-approval tax rate and election requirements. The legislation changes how taxing units calculate their no-new-revenue and voter-approval tax rates, making it more difficult to increase taxes by requiring a two-thirds majority (instead of a simple majority) in voter approval elections for tax rates that exceed certain thresholds. Key changes include modifying the formulas for calculating tax rates, removing some existing provisions about tax rate calculations, and adjusting the election process for approving tax increases. The bill affects various types of taxing units, including school districts, special districts, and water districts, and establishes new rules for how these entities can propose and implement tax rate increases. Notably, the bill removes several existing sections of tax code related to tax rate calculations and introduces more stringent requirements for tax rate approvals. The changes are intended to provide more transparency and voter control over local property tax increases, with the effective date set for January 1, 2026, and applying to ad valorem taxes for tax years beginning on or after that date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3601