The bill, H.B. No. 195, amends Section 26.17 of the Texas Tax Code to enhance the transparency of school district ad valorem tax-related information. It introduces a new Subsection (b-1) that specifically applies to properties located in school districts with a local revenue level exceeding entitlement, as defined by Section 48.257 of the Education Code. This subsection mandates that a database must include additional information for each property listed on the appraisal roll, including the estimated percentages of maintenance and operations taxes that the district is required to pay and not required to pay under agreements for purchasing average daily attendance credits. Furthermore, it requires a statement detailing the estimated local property tax collections that will be recaptured by the state versus what will remain in the school district for maintenance and operations.

The bill is set to take effect on January 1, 2026, allowing time for the necessary adjustments to be made in the dissemination of tax-related information. This legislative change aims to provide clearer insights into how local property taxes are utilized and the financial obligations of school districts, thereby promoting accountability and informed decision-making among taxpayers.

Statutes affected:
Introduced: Tax Code 26.16, Tax Code 31.01 (Tax Code 26, Tax Code 31)
House Committee Report: Tax Code 26.17 (Tax Code 26, Tax Code 31)
Engrossed: Tax Code 26.17 (Tax Code 26, Tax Code 31)