# Tex. Tax Code § 171.003: INCREASE IN RATE REQUIRES VOTER APPROVAL

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.003

## Section

- **Citation:** Tex. Tax Code § 171.003
- **Heading:** INCREASE IN RATE REQUIRES VOTER APPROVAL
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code tx / Chapter 171 / Section 171.003

## Text

(a) An increase in a rate provided by Section 171.002(a) or (b) takes effect only if approved by a majority of the registered voters voting in a statewide referendum held on the question of increasing the rate. The referendum must specify the increased rate or rates.

(b) This section does not apply to a decrease in a rate provided by Section 171.002(a) or (b). If a rate is decreased, this section applies to any subsequent increase in that rate.

(c) This section does not apply to any change in the tax imposed by this chapter in relation to:

(1) the manner in which the tax is computed, including the determination of margin and taxable margin and any allowable deductions or credits;

(2) the manner in which the tax is administered or enforced; or

(3) the applicability of the tax to certain entities.

## Nearby sections

- [Tex. Tax Code § 171.0001 § 171.0001. GENERAL DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0001.md)
- [Tex. Tax Code § 171.001 § 171.001. TAX IMPOSED.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.001.md)
- [Tex. Tax Code § 171.0002 § 171.0002. DEFINITION OF TAXABLE ENTITY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0002.md)
- [Tex. Tax Code § 171.002 § 171.002. RATES; COMPUTATION OF TAX.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.002.md)
- [Tex. Tax Code § 171.003 § 171.003. INCREASE IN RATE REQUIRES VOTER APPROVAL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.003.md)
- [Tex. Tax Code § 171.0003 § 171.0003. DEFINITION OF PASSIVE ENTITY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0003.md)
- [Tex. Tax Code § 171.0004 § 171.0004. DEFINITION OF CONDUCTING ACTIVE TRADE OR BUSINESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0004.md)
- [Tex. Tax Code § 171.0005 § 171.0005. DEFINITION OF NEW VETERAN-OWNED BUSINESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0005.md)
- [Tex. Tax Code § 171.006 § 171.006. ADJUSTMENT OF ELIGIBILITY FOR NO TAX DUE, DISCOUNTS, AND COMPENSATION DEDUCTION.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.006.md)
- [Tex. Tax Code § 171.0011 § 171.0011. ADDITIONAL TAX.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.0011.md)
- [Tex. Tax Code § 171.051 § 171.051. APPLICATION FOR EXEMPTION; EFFECTIVE DATE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.051.md)
- [Tex. Tax Code § 171.052 § 171.052. CERTAIN CORPORATIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.052.md)
- [Tex. Tax Code § 171.053 § 171.053. EXEMPTION--RAILWAY TERMINAL CORPORATION.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.053.md)
- [Tex. Tax Code § 171.055 § 171.055. EXEMPTION--OPEN-END INVESTMENT COMPANY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.055.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C171_S171.003. Check the current official text before relying on it. Not legal advice.