Limits local government debt service to 10% of average property tax collections over three years.

Texas HB140 amends the Government Code to restrict political subdivisions from issuing public securities if the resulting annual debt service exceeds a specific limit. The maximum annual debt service on debt payable from property taxes cannot exceed 10% of the average property tax collections for the three preceding fiscal years. This provision applies regardless of any conflicting municipal charter provisions. The changes take effect on the 91st day after the last day of the legislative session.

Limits local government debt service to 10% of average property tax collections over three years.

Texas HB140 amends the Government Code to restrict political subdivisions from issuing public securities if the resulting annual debt service exceeds a specific limit. The maximum annual debt service on debt payable from property taxes cannot exceed 10% of the average property tax collections for the three preceding fiscal years. This provision applies regardless of any conflicting municipal charter provisions. The changes take effect on the 91st day after the last day of the legislative session.