Bill > SB2519

This bill introduces restrictions on how certain ad valorem tax revenue (property tax revenue) can be used to pay public securities. Specifically, the bill prohibits municipalities, counties, and local government corporations from using tax revenue generated from a specific election under Chapter 26 of the Tax Code to repay public securities (such as bonds) through direct payments or transfers. The bill modifies existing law by adding a new subsection to the Tax Code and updating the Government Code to clarify these limitations. Ad valorem tax revenue that is subject to annual appropriation and derived from a tax election cannot be dedicated, pledged, or used to pay public securities, including revenue transferred to a local government corporation for security or payment purposes. The new restrictions will only apply to public securities issued on or after the bill's effective date, which will be either immediately upon receiving a two-thirds vote in the Texas Legislature or September 1, 2025, if that threshold is not met. The bill also updates some terminology, changing references from "political subdivisions" to "local entities" and broadening the definition of public securities.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2519