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TX HB19

TX HB19
Relating to the issuance and repayment of debt by local governments, including the adoption of an ad valorem tax rate and the use of ad valorem tax revenue for the repayment of debt.


summary

Introduced
03/14/2025
In Committee
03/17/2025
Crossed Over
Passed
Dead
06/02/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to the issuance and repayment of debt by local governments, including the adoption of an ad valorem tax rate and the use of ad valorem tax revenue for the repayment of debt.

AI Summary

This bill introduces several significant changes to local government debt issuance, taxation, and financial reporting in Texas. The bill mandates that elections for bond issuance or tax rate increases must be held on the November uniform election date, limits local government debt by capping annual debt service at 20 percent of the average property tax collections from the previous three years, and requires that bond proceeds be allocated exactly as stated in the voter-approved ballot proposition. The bill also modifies requirements for issuing certificates of obligation, making it harder for local governments to issue such certificates by reducing the circumstances under which they can be used and increasing voter protest thresholds. Additionally, the bill changes tax rate calculation and reporting requirements, specifically prohibiting maintenance and operations tax revenue increases from being used to repay debt, and requires more detailed and transparent public notices about proposed tax rates and budgets. The bill aims to provide greater fiscal accountability and transparency for local government financial decisions, with most provisions taking effect on September 1, 2025, and some specific sections becoming effective on January 1, 2026.

Committee Categories

Budget and Finance

Sponsors (6)

Last Action

Left pending in committee (on 04/21/2025)

bill text


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