Bill Text: TX HB217 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the vote required in an election to approve an ad valorem tax rate that exceeds a taxing unit's voter-approval tax rate; making conforming changes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB217 Detail]
Download: Texas-2025-HB217-Introduced.html
89R1308 RDS-F | ||
By: Harrison | H.B. No. 217 |
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relating to the vote required in an election to approve an ad | ||
valorem tax rate that exceeds a taxing unit's voter-approval tax | ||
rate; making conforming changes. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 281.124(d) and (f), Health and Safety | ||
Code, are amended to read as follows: | ||
(d) If at least 60 percent [ |
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the election favor the proposition, the tax rate for the specified | ||
tax year is the rate approved by the voters, and that rate is not | ||
subject to Section 26.07, Tax Code. The board shall adopt the tax | ||
rate as provided by Chapter 26, Tax Code. | ||
(f) Notwithstanding any other law, if at least 60 percent [ |
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governing body with approval authority over the district's budget | ||
or tax rate may not disapprove the tax rate approved by the voters | ||
or disapprove the budget based solely on the tax rate approved by | ||
the voters. | ||
SECTION 2. Section 1101.254(f), Special District Local Laws | ||
Code, is amended to read as follows: | ||
(f) This section does not affect the applicability of | ||
Section 26.07, Tax Code, to the district's tax rate, except that if | ||
at least 60 percent of the district voters approve a tax rate | ||
increase under this section, Section 26.07, Tax Code, does not | ||
apply to the tax rate for that year. | ||
SECTION 3. Sections 26.06(b-1) and (b-3), Tax Code, are | ||
amended to read as follows: | ||
(b-1) If the proposed tax rate exceeds the no-new-revenue | ||
tax rate and the voter-approval tax rate of the taxing unit, the | ||
notice must contain a statement in the following form: | ||
"NOTICE OF PUBLIC HEARING ON TAX INCREASE | ||
"PROPOSED TAX RATE $__________ per $100 | ||
"NO-NEW-REVENUE TAX RATE $__________ per $100 | ||
"VOTER-APPROVAL TAX RATE $__________ per $100 | ||
"The no-new-revenue tax rate is the tax rate for the (current | ||
tax year) tax year that will raise the same amount of property tax | ||
revenue for (name of taxing unit) from the same properties in both | ||
the (preceding tax year) tax year and the (current tax year) tax | ||
year. | ||
"The voter-approval tax rate is the highest tax rate that | ||
(name of taxing unit) may adopt without holding an election to seek | ||
voter approval of the rate. | ||
"The proposed tax rate is greater than the no-new-revenue tax | ||
rate. This means that (name of taxing unit) is proposing to | ||
increase property taxes for the (current tax year) tax year. | ||
"A public hearing on the proposed tax rate will be held on | ||
(date and time) at (meeting place). | ||
"The proposed tax rate is also greater than the | ||
voter-approval tax rate. If (name of taxing unit) adopts the | ||
proposed tax rate, (name of taxing unit) is required to hold an | ||
election so that the voters may accept or reject the proposed tax | ||
rate. Unless at least 60 percent [ |
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accept [ |
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taxing unit) will be the voter-approval tax rate. The election will | ||
be held on (date of election). You may contact the (name of office | ||
responsible for administering the election) for information about | ||
voting locations. The hours of voting on election day are (voting | ||
hours). | ||
"Your taxes owed under any of the tax rates mentioned above | ||
can be calculated as follows: | ||
"Property tax amount = tax rate x taxable value of your | ||
property / 100 | ||
"(Names of all members of the governing body, showing how | ||
each voted on the proposal to consider the tax increase or, if one | ||
or more were absent, indicating the absences.) | ||
"Visit Texas.gov/PropertyTaxes to find a link to your local | ||
property tax database on which you can easily access information | ||
regarding your property taxes, including information about | ||
proposed tax rates and scheduled public hearings of each entity | ||
that taxes your property. | ||
"The 86th Texas Legislature modified the manner in which the | ||
voter-approval tax rate is calculated to limit the rate of growth of | ||
property taxes in the state." | ||
(b-3) If the proposed tax rate does not exceed the | ||
no-new-revenue tax rate but exceeds the voter-approval tax rate of | ||
the taxing unit, the notice must contain a statement in the | ||
following form: | ||
"NOTICE OF PUBLIC HEARING ON TAX RATE | ||
"PROPOSED TAX RATE $__________ per $100 | ||
"NO-NEW-REVENUE TAX RATE $__________ per $100 | ||
"VOTER-APPROVAL TAX RATE $__________ per $100 | ||
"The no-new-revenue tax rate is the tax rate for the (current | ||
tax year) tax year that will raise the same amount of property tax | ||
revenue for (name of taxing unit) from the same properties in both | ||
the (preceding tax year) tax year and the (current tax year) tax | ||
year. | ||
"The voter-approval tax rate is the highest tax rate that | ||
(name of taxing unit) may adopt without holding an election to seek | ||
voter approval of the rate. | ||
"The proposed tax rate is not greater than the no-new-revenue | ||
tax rate. This means that (name of taxing unit) is not proposing to | ||
increase property taxes for the (current tax year) tax year. | ||
"A public hearing on the proposed tax rate will be held on | ||
(date and time) at (meeting place). | ||
"The proposed tax rate is greater than the voter-approval tax | ||
rate. If (name of taxing unit) adopts the proposed tax rate, (name | ||
of taxing unit) is required to hold an election so that the voters | ||
may accept or reject the proposed tax rate. Unless at least 60 | ||
percent [ |
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tax rate, the tax rate of the (name of taxing unit) will be the | ||
voter-approval tax rate. The election will be held on (date of | ||
election). You may contact the (name of office responsible for | ||
administering the election) for information about voting | ||
locations. The hours of voting on election day are (voting hours). | ||
"Your taxes owed under any of the tax rates mentioned above | ||
can be calculated as follows: | ||
"Property tax amount = tax rate x taxable value of your | ||
property / 100 | ||
"(Names of all members of the governing body, showing how | ||
each voted on the proposal to consider the tax rate or, if one or | ||
more were absent, indicating the absences.) | ||
"Visit Texas.gov/PropertyTaxes to find a link to your local | ||
property tax database on which you can easily access information | ||
regarding your property taxes, including information about | ||
proposed tax rates and scheduled public hearings of each entity | ||
that taxes your property. | ||
"The 86th Texas Legislature modified the manner in which the | ||
voter-approval tax rate is calculated to limit the rate of growth of | ||
property taxes in the state." | ||
SECTION 4. Section 26.063(b), Tax Code, is amended to read | ||
as follows: | ||
(b) This subsection applies only to a taxing unit that is | ||
required to hold an election under Section 26.07. In the notice | ||
required to be provided by the taxing unit under Section 26.06(b-1) | ||
or (b-3), as applicable, the taxing unit shall: | ||
(1) add the following to the end of the list of rates | ||
included in the notice: | ||
"DE MINIMIS RATE $__________ per $100"; | ||
(2) substitute the following for the definition of | ||
"voter-approval tax rate": "The voter-approval tax rate is the | ||
highest tax rate that (name of taxing unit) may adopt without | ||
holding an election to seek voter approval of the rate, unless the | ||
de minimis rate for (name of taxing unit) exceeds the | ||
voter-approval tax rate for (name of taxing unit)."; | ||
(3) add the following definition of "de minimis rate": | ||
"The de minimis rate is the rate equal to the sum of the | ||
no-new-revenue maintenance and operations rate for (name of taxing | ||
unit), the rate that will raise $500,000, and the current debt rate | ||
for (name of taxing unit)."; and | ||
(4) substitute the following for the provision that | ||
provides notice that an election is required: "The proposed tax | ||
rate is greater than the voter-approval tax rate and the de minimis | ||
rate. If (name of taxing unit) adopts the proposed tax rate, (name | ||
of taxing unit) is required to hold an election so that the voters | ||
may accept or reject the proposed tax rate. Unless at least 60 | ||
percent [ |
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tax rate, the tax rate of the (name of taxing unit) will be the | ||
voter-approval tax rate of the (name of taxing unit). The election | ||
will be held on (date of election). You may contact the (name of | ||
office responsible for administering the election) for information | ||
about voting locations. The hours of voting on election day are | ||
(voting hours).". | ||
SECTION 5. Section 26.07(d), Tax Code, is amended to read as | ||
follows: | ||
(d) If at least 60 percent [ |
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the election favor the proposition, the tax rate for the current | ||
year is the rate that was adopted by the governing body. | ||
SECTION 6. Section 26.08(c), Tax Code, is amended to read as | ||
follows: | ||
(c) If at least 60 percent [ |
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the election favor the proposition, the tax rate for the current | ||
year is the rate that was adopted by the governing body. | ||
SECTION 7. The changes in law made by this Act apply only to | ||
an election held on or after the effective date of this Act. An | ||
election held before the effective date of this Act is governed by | ||
the law in effect on the date the election was held, and that law is | ||
continued in effect for that purpose. | ||
SECTION 8. This Act takes effect January 1, 2026. |