TX HB3601

Eliminates the automatic 3.5% or 8% multiplier previously applied to the no-new-revenue maintenance and operations rate when calculating the voter-approval tax rate, effectively setting the voter-approval tax rate equal to the no-new-revenue rate plus current debt rate

Raises the voter approval threshold from a simple majority to a two-thirds supermajority for taxing units seeking to adopt a tax rate exceeding the voter-approval tax rate

Removes the "unused increment rate" provision that allowed taxing units (other than special taxing units) to bank unused tax rate capacity from previous years

Repeals the "de minimis rate" exception that allowed certain smaller taxing units and municipalities under 30,000 population to avoid automatic elections when exceeding the voter-approval rate

Applies to ad valorem tax years beginning on or after January 1, 2026, and consolidates various water district tax rate provisions into a single automatic election requirement when taxes on the average homestead increase from the preceding year