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 make conforming changes, including the removal of specific sections that previously permitted this practice. Notably, it modifies Section 26.042 of the Tax Code to focus on the calculation of the voter-approval tax rate for taxing units in disaster areas, while eliminating the ability to adopt a higher tax rate without voter approval.

Additionally, the bill introduces new language that restricts school districts from increasing their maintenance and operations tax rate beyond a specified maximum if they are required to reduce their tax rate due to changes in state funding levels. The bill also repeals certain sections of the Education Code and Tax Code that previously allowed for the adoption of tax rates without voter consent in disaster situations. 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)