Bill > HB5303

This bill introduces new requirements for local government bodies when issuing general obligation bonds or adopting tax rates that exceed certain thresholds. Specifically, for political subdivisions issuing general obligation bonds, at least 60% of the governing body must vote in favor of the bonds. For taxing units wanting to adopt a tax rate higher than the voter-approval rate (a legally defined maximum tax rate that can be set without triggering a mandatory voter referendum) in a year following a failed voter referendum on such a rate, 80% of the governing body must approve the new rate by record vote. Similarly, for water districts, 80% of board members must vote to adopt a tax rate exceeding the voter-approval rate in a year after voters have rejected a previous tax rate proposition. These provisions aim to create higher accountability and consensus requirements for local governments when seeking to raise taxes or issue bonds beyond standard limits. The bill will take effect on January 1, 2026, and will apply to bonds and tax rates from that date forward, giving local governments time to prepare for the new voting thresholds.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5303