TX HB250

Eliminates the automatic 3.5% and 8% multipliers previously used in calculating voter-approval tax rates for taxing units, changing the formula so the voter-approval tax rate equals the no-new-revenue maintenance and operations rate plus the current debt rate

Removes the distinction between "special taxing units" and other taxing units for purposes of calculating voter-approval tax rates, applying a single uniform formula to all taxing units

Requires an automatic election for voter approval whenever any taxing unit adopts a tax rate exceeding the voter-approval rate, eliminating the previous "de minimis rate" exception and petition-based election process

Redefines "current debt service" to mean specifically the minimum dollar amount required for debt service payments, and repeals provisions allowing "unused increment rates" to be banked for future use

Applies to water districts by removing the 8% increase threshold, instead requiring an election whenever the combined tax rate would impose more than the prior year's tax amount on an average residence homestead; takes effect January 1, 2026