Bill > HB49

This bill restricts how local governments in Texas can use ad valorem tax revenue (property tax revenue) to pay for public securities (such as bonds). Specifically, the bill prohibits municipalities, counties, and entities acting on their behalf (like local government corporations) from using tax revenue from voter-approved tax increases to repay or secure public securities. Under the new law, tax revenue increases approved through elections cannot be dedicated, pledged, or transferred to any entity for the purpose of making payments on public securities. The bill modifies the Tax Code and Government Code to implement these restrictions, and the changes will apply to public securities issued on or after the bill's effective date. The legislation aims to limit how local governments can use property tax revenue, potentially making it more difficult for them to finance projects through debt. The bill will take effect immediately if it receives a two-thirds vote in the Texas Legislature, or otherwise will take effect 91 days after the end of the legislative session.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB49