Bill > HB299

This bill introduces comprehensive changes to local government and tax rate regulations in Texas, focusing on limiting political subdivision expenditures and modifying ad valorem (property) tax rate calculation and approval processes. The bill creates a new section of the Local Government Code establishing an annual expenditure limit for political subdivisions, which restricts total spending to either the previous year's expenditures or a calculated amount that factors in population growth and inflation rates. Political subdivisions can exceed this limit only if at least two-thirds of registered voters approve the additional expenditures in an election. Additionally, the bill modifies tax rate calculation formulas by reducing the multipliers used to determine voter-approval tax rates from 1.08 to 1.06 for special taxing units and from 1.035 to 1.02 for other taxing units, effectively slowing the potential growth of property tax rates. The legislation also changes voting requirements for tax rate approvals, now requiring at least two-thirds of registered voters (instead of a simple majority) to approve tax rate increases. The bill provides new enforcement mechanisms, including the ability for the attorney general and registered voters to bring actions against political subdivisions that do not comply with these new regulations. These changes are set to take effect on January 1, 2026, and will apply to fiscal years and tax years beginning on or after that date.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB299