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Signed Into Law
Signed May 24, 2025Effective 2025-09-01
SB1025

Regular Session

Relating to the text of ballot propositions that increase taxes.

Government Affairs & Regulatory Compliance Analysis

SB1025: Government Affairs Overview

SB1025 mandates that any ballot proposition imposing or increasing a tax must prominently display the statement "THIS IS A TAX INCREASE" in all-caps at the top of the ballot text. This strict formatting requirement applies to all local government entities (cities, counties, special districts) and directly affects the legal validity of bond elections, MUD formations, and infrastructure funding measures.

Sen. Paul Bettencourt·Senate Bill·Regular Session

Critical
Low Cost
Effective:2025-09-01
Enforcing Agencies

Local Governing Bodies (Cities, Counties, Special Districts ordering elections) • Texas Secretary of State (Elections Division)

Business Impact

Who SB1025 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.

🏢

Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Proofreading Protocols: Establish a "Compliance Stop" in the drafting workflow to physically measure font size and placement on ballot proofs before final approval.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1025
Critical
Relating to the text of ballot propositions that increase taxes.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Local Governing BodiesTexas Secretary of State
Primary Author: Sen. Paul Bettencourt
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025. Strict compliance is required for any election *ordered* on or after this date. Elections ordered prior to this date (even if held in November 2025) are governed by previous law, though voluntary compliance is recommended to mitigate litigation risk.
  • Agency Rulemaking: The Texas Secretary of State is not explicitly required to issue rules, but guidance is anticipated regarding the definition of "imposition" versus "renewal" of taxes. Monitor the SOS Elections Division for advisories in Q3 2025.

Immediate Action Plan

  • Audit Templates: Immediately revise all legal templates for bond elections and tax ratifications to include the "THIS IS A TAX INCREASE" language.
  • Verify Vendor Capabilities: Contact your election services vendor to confirm their software can handle specific font-size matching and mixed-case text.
  • Manage the Calendar: If targeting a November 2025 election, attempt to finalize and sign the Election Order before August 25, 2025, to lock in current rules and avoid transition-period ambiguity.
  • Update Insurance: Review Professional Liability (E&O) coverage for outside counsel and consultants to ensure it covers negligence in election administration drafting.

Operational Changes Required

Contracts

  • Election Services Agreements: Contracts with third-party election vendors and county administrators must be amended to include a "Strict Adherence to SB1025" clause. Vendors must guarantee their software supports the specific mixed-case and font-size formatting required.
  • Developer Reimbursement Agreements: Developers funding MUD/PID formations should update agreements to include indemnification for costs associated with a re-vote if the initial election is invalidated due to administrative formatting errors.

Hiring/Training

  • Legal & Compliance Training: In-house counsel and bond counsel must update all ballot proposition templates immediately. Teams must be trained to verify that the mandatory warning is in the same font size as the body text; smaller warning text constitutes non-compliance.
  • Proofreading Protocols: Establish a "Compliance Stop" in the drafting workflow to physically measure font size and placement on ballot proofs before final approval.

Reporting & Record-Keeping

  • The Election Order: You must retain a certified copy of the Election Order showing the specific date it was signed. This date is the dispositive factor in determining which legal standard applies if the ballot language is challenged.
  • Ballot Proof Retention: Retain both digital and physical proofs of the final ballot layout to demonstrate that the warning appeared at the "top" of the proposition.

Fees & Costs

  • Litigation Risk: While there are no new filing fees, the cost of non-compliance is the potential invalidation of election results. Budget for increased legal review time during the drafting phase of any bond measure.

Strategic Ambiguities & Considerations

  • "Top of the Proposition": The statute requires the warning at the "top," but does not specify if this means the header or the first line of the legal text. Guidance: Place the all-caps statement as the very first sentence of the proposition text.
  • "Imposition" vs. "Renewal": The law applies to the "imposition" or "increase" of a tax. It is unclear if this applies to the renewal of an expiring tax at the same rate. Guidance: Adopt a conservative approach and include the warning on renewals until the Secretary of State issues a clarification, as opponents may argue a renewal is an "imposition" of a tax that would otherwise cease.
  • Legacy Hardware Limitations: Some older voting systems default to all-caps for the entire ballot. SB1025 implies a mixed-case requirement to make the all-caps warning stand out. Ensure your hardware can accommodate this distinction.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 30, 2025
Passed Senate
Mar 20, 2025
Passed House
May 8, 2025
Signed
May 24, 2025
Effective
Sep 1, 2025
TopicsElectionsElections--generalTaxationTaxation--property-tax Rate
03

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author

House Sponsor

Rep. Ellen TroxclairRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1025

Q

What does Texas SB1025 do?

SB1025 mandates that any ballot proposition imposing or increasing a tax must prominently display the statement "THIS IS A TAX INCREASE" in all-caps at the top of the ballot text. This strict formatting requirement applies to all local government entities (cities, counties, special districts) and directly affects the legal validity of bond elections, MUD formations, and infrastructure funding measures.

Q

Who authored SB1025?

SB1025 was authored by Texas Senator Paul Bettencourt during the Regular Session.

Q

When was SB1025 signed into law?

SB1025 was signed into law by Governor Greg Abbott on May 24, 2025.

Q

Which agencies enforce SB1025?

SB1025 is enforced by Local Governing Bodies (Cities, Counties, Special Districts ordering elections) and Texas Secretary of State (Elections Division).

Q

How significant are the changes in SB1025?

The regulatory priority for SB1025 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1025?

The cost impact of SB1025 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1025 address?

SB1025 addresses topics including elections, elections--general, taxation and taxation--property-tax rate.

Q

What are the key dates for SB1025?

Key dates for SB1025: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1025?

SB1025 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026