Texas HB203 limits political subdivision expenditures and modifies ad valorem tax rate adoption.

Texas HB203 introduces a cap on political subdivision expenditures, allowing increases only if approved by two-thirds of voters. It also revises the adoption of ad valorem tax rates, requiring elections if proposed rates exceed certain thresholds. The bill defines terms like "no-new-revenue tax rate" and "voter-approval tax rate," and mandates public notices and hearings for proposed tax rate changes. It takes effect February 1, 2026.

Texas HB203 limits political subdivision expenditures and modifies ad valorem tax rate adoption.

Texas HB203 introduces a cap on political subdivision expenditures, allowing increases only if approved by two-thirds of voters. It also revises the adoption of ad valorem tax rates, requiring elections if proposed rates exceed certain thresholds. The bill defines terms like "no-new-revenue tax rate" and "voter-approval tax rate," and mandates public notices and hearings for proposed tax rate changes. It takes effect February 1, 2026.