Bill > HB140

This bill introduces a new limitation on the debt that political subdivisions (like local governments, cities, or counties) can issue in Texas. Specifically, the bill restricts a political subdivision from authorizing additional debt if the resulting annual debt service would exceed 10 percent of the average property tax collections from the previous three fiscal years. This means that local governments would be constrained in how much new debt they can take on, based on a calculation of their recent property tax revenue. The provision applies regardless of any existing municipal charter provisions, effectively creating a statewide standard for local government debt. The bill would go into effect 91 days after the end of the legislative session, giving local governments time to adjust their financial planning to comply with the new debt limitation. This type of legislation aims to promote fiscal responsibility and prevent local governments from accumulating unsustainable levels of debt.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB140