HB85 changes the voting threshold for certain local tax-rate elections from a simple majority to a two-thirds supermajority. The bill applies this higher approval standard to elections involving ad valorem tax rates that exceed a taxing unit’s voter-approval tax rate, including certain hospital district and special district tax elections, and it updates related notice language in the Tax Code to reflect that change. It also revises the statutory notices that local governments must provide when proposing tax rates above the no-new-revenue rate or voter-approval tax rate, including references to the de minimis rate.
In practical terms, the bill makes it harder for local taxing units to lock in a tax rate above the voter-approval threshold unless a larger share of voters supports the measure. It also clarifies that, for elections ordered on or after the effective date, the new two-thirds requirement controls, while elections ordered earlier remain governed by prior law. The act is set to take effect January 1, 2026.
Impact
HB85 amends multiple provisions of the Health and Safety Code, Special District Local Laws Code, and Tax Code to raise the approval standard for certain tax-rate elections and to conform public notice language accordingly. It affects local taxing units that seek voter approval for tax rates above the voter-approval tax rate, and it changes the legal consequences of those elections by requiring two-thirds voter approval rather than a majority. The bill also updates the statutory definition and notice treatment of the de minimis rate for taxing units subject to Section 26.07 elections.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the supplied materials. Based on the text alone, the bill appears to reflect a policy preference for tighter voter control over local property tax increases and greater restraint on taxing authority. The absence of recorded discussion prevents a more specific assessment of legislative sentiment.
Contention
The main point of contention is the higher voting threshold: the bill replaces majority approval with a two-thirds supermajority for certain tax-rate elections, which would make it more difficult for local governments to adopt higher tax rates even when a simple majority of voters supports them. Local taxing units, governing bodies, and entities that rely on property tax revenue may view this as a significant constraint, while taxpayer advocates and supporters of property tax limitation would likely favor it. A secondary issue is the bill’s conforming changes to notice requirements and the de minimis rate language, which could affect how taxing units explain proposed tax increases to voters.
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved.
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.
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.
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.
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.
Relating to the requirements regarding an election to authorize the issuance of general obligation bonds or to approve an increase in an ad valorem tax rate.
Relating to the date and requirements regarding an election to authorize the issuance of general obligation bonds or other debt obligations payable from ad valorem taxes or to approve an increase in an ad valorem tax rate.
Relating to the requirements regarding an election to authorize the issuance of general obligation bonds or to approve an increase in an ad valorem tax rate.
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.