Relating to restrictions on the use of certain ad valorem taxes and on the issuance of certain bonds supported by ad valorem taxes.

This bill restricts how local governments in Texas can use property tax revenue. It prohibits municipalities, counties, and local government corporations from using tax revenue from property tax elections (Chapter 26, Tax Code) to repay bonds or other public debt obligations, including transfers to other entities for that purpose. The law specifically bans dedicating, pledging, or using this tax revenue for payments on public securities like bonds. The restrictions apply only to bonds issued on or after the bill's effective date (September 1, 2025, unless passed with a two-thirds vote).