The bill, H.B. No. 1131, proposes the repeal of provisions that currently allow certain taxing units to adopt an ad valorem tax rate exceeding the voter-approval tax rate in the year following a disaster without holding an election. The bill aims to amend the Education Code and the Tax Code to eliminate these provisions and make necessary conforming changes. Specifically, it modifies Section 48.202(f) of the Education Code to restrict school districts from increasing their maintenance and operations tax rate beyond a specified limit during a tax year when they are required to reduce their tax rate due to increased funding levels.

Additionally, the bill amends the heading of Section 26.042 of the Tax Code to focus on the calculation of the voter-approval tax rate for certain taxing units in disaster areas, while repealing Sections 26.042(d), (e), and (f) of the Tax Code, as well as Section 45.0032(d) of the Education Code. The changes will take effect on January 1, 2026, and will apply to ad valorem taxes imposed for tax years beginning on or after that date.

Statutes affected:
Introduced: Education Code 48.202, Tax Code 26.042 (Tax Code 26, Education Code 48)