Bill > SB2529

This bill introduces new requirements for local government bodies when issuing general obligation bonds and adopting tax rates that exceed certain thresholds. Specifically, the bill mandates that political subdivisions can only issue general obligation bonds if at least 60% of their governing body votes in favor, and they can only adopt a tax rate exceeding the voter-approval rate if at least 75% of the governing body approves by a recorded vote. The bill applies to various types of local government entities, including political subdivisions and special districts like water districts. These new rules will only apply to bonds and tax rates implemented on or after January 1, 2026, and they are designed to add an extra layer of scrutiny and consensus-building when local governments want to increase taxes or issue bonds beyond standard voter-approved limits. An ad valorem tax rate refers to property taxes calculated based on the assessed value of property, and the voter-approval tax rate is a maximum tax rate that can be set without triggering a mandatory voter referendum. By requiring supermajority votes, the bill aims to ensure broader support within local governing bodies for significant financial decisions that could impact taxpayers.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2529