Bill Text: TX SB749 | 2025-2026 | 89th Legislature | Introduced

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Bill Title: Relating to the adoption of an ad valorem tax rate by certain special districts and voter approval of a proposed ad valorem tax rate that exceeds the voter-approval tax rate.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2025-02-07 - Referred to Local Government [SB749 Detail]

Download: Texas-2025-SB749-Introduced.html

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89R8834 TJB-D
By: Kolkhorst S.B. No. 749

A BILL TO BE ENTITLED
AN ACT
relating to the adoption of an ad valorem tax rate by certain
special districts and voter approval of a proposed ad valorem tax
rate that exceeds the voter-approval tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2051.202(d), Government Code, is amended
to read as follows:
(d) A special purpose district shall post or cause to be
posted on an Internet website the following information, if
applicable:
(1) the name of the special purpose district;
(2) the name and term of office of each member of the
governing body of the special purpose district;
(3) the contact information for the main office of the
special purpose district, including the physical address, the
mailing address, and the telephone number;
(4) the official contact information for each member
of the governing body of the special purpose district;
(5) if the special purpose district employs a person
as a general manager or executive director, or in another position
to perform duties or functions comparable to those of a general
manager or executive director, the name of the general manager,
executive director, or person that performs those duties;
(6) if the special purpose district contracts with a
utility operator, the contact information for a person representing
the utility operator, including a mailing address and telephone
number;
(7) if the special purpose district contracts with a
tax assessor-collector, the contact information for a person
representing the tax assessor-collector, including a mailing
address and telephone number;
(8) if the special purpose district imposes an ad
valorem tax, the rate of the ad valorem tax of the special purpose
district;
(9) if the special purpose district imposes a sales
and use tax, the rate of the sales and use tax of the special purpose
district;
(10) any notice of tax hearing required to be given
under Chapter 26, Tax Code[, or Section 49.236, Water Code];
(11) the location and schedule of meetings of the
governing body of the special purpose district;
(12) a statement substantially similar to the
following: "Residents of the district have the right to request the
designation of a meeting location within the district under Section
49.062(g), Water Code. A description of this process can be found at
(insert link to the Internet website described by Section
49.062(g), Water Code).";
(13) each notice of a meeting of the governing body of
the special purpose district under Subchapter C, Chapter 551, for
meetings conducted in the current calendar year and the immediately
preceding calendar year;
(14) the minutes of a public meeting of the governing
body of the special purpose district under Section 551.021 for
meetings conducted in the current calendar year and the immediately
preceding calendar year; and
(15) the most recent financial audit of the special
purpose district.
SECTION 2. Section 26.012(19), Tax Code, is amended to read
as follows:
(19) "Special taxing unit" means[:
[(A)] a taxing unit, other than a school
district, for which the maintenance and operations tax rate
proposed for the current tax year is 2.5 cents or less per $100 of
taxable value[;
[(B) a junior college district; or
[(C) a hospital district].
SECTION 3. Section 26.013, Tax Code, is amended by adding
Subsection (c) to read as follows:
(c) This subsection applies only to a junior college
district, a hospital district, or a taxing unit to which former
Section 49.236, Water Code, applied in the 2025 tax year.
Notwithstanding Subsection (b)(2), for each tax year before the
2026 tax year, the foregone revenue amount of a taxing unit to which
this subsection applies is considered to be zero. This subsection
expires December 31, 2028.
SECTION 4. Section 49.057, Water Code, is amended by
amending Subsection (b) and adding Subsection (j) to read as
follows:
(b) The board shall adopt an annual budget. The board of a
developed district[, as defined by Section 49.23602,] shall include
as an appendix to the budget the district's:
(1) audited financial statements;
(2) bond transcripts; and
(3) engineer's reports required by Section 49.106.
(j) In this section, "developed district" means a district
that has financed, completed, and issued bonds to pay for all land,
works, improvements, facilities, plants, equipment, and appliances
necessary to serve at least 95 percent of the projected build-out of
the district in accordance with the purposes for its creation or the
purposes authorized by the constitution, this code, or any other
law.
SECTION 5. Section 6B(f), Chapter 1472, Acts of the 77th
Legislature, Regular Session, 2001, is amended to read as follows:
(f) The district may provide that payments required by any
of the district's contracts, agreements, or leases may be payable
from the sale of notes, taxes, or bonds, or any combination of
notes, taxes, or bonds, or may be secured by a lien on or a pledge of
any available funds, including proceeds of the district's
maintenance tax, and may be payable subject to annual appropriation
by the district. The district may pledge to impose and may impose a
maintenance tax in an amount sufficient to comply with the
district's obligations under the district's contracts, leases, and
agreements at a maximum aggregate rate not to exceed 10 cents for
each $100 valuation of taxable property in the district. [Sections
26.012, 26.04, 26.05, 26.07, and 26.075, Tax Code, do not apply to
maintenance taxes levied and collected for payments under a
contract, agreement, lease, time warrant, or maintenance note
issued or executed under this section.]
SECTION 6. The following provisions are repealed:
(1) Section 3828.157, Special District Local Laws
Code;
(2) Section 8876.152, Special District Local Laws
Code;
(3) Section 49.107(g), Water Code;
(4) Section 49.108(f), Water Code;
(5) Section 49.236, Water Code;
(6) Section 49.23601, Water Code;
(7) Section 49.23602, Water Code; and
(8) Section 49.23603, Water Code.
SECTION 7. Section 26.012(19), Tax Code, as amended by this
Act, applies only to an ad valorem tax year that begins on or after
the effective date of this Act.
SECTION 8. Section 6B(f), Chapter 1472, Acts of the 77th
Legislature, Regular Session, 2001, as amended by this Act, applies
only to an ad valorem tax year that begins on or after the effective
date of this Act.
SECTION 9. The repeal of Sections 3828.157 and 8876.152,
Special District Local Laws Code, and Sections 49.107(g),
49.108(f), 49.236, 49.23601, 49.23602, and 49.23603, Water Code,
applies only to an ad valorem tax year that begins on or after the
effective date of this Act.
SECTION 10. This Act takes effect January 1, 2026.