The bill, S.B. No. 1502, amends Section 26.042 of the Texas Tax Code to establish new restrictions on the authority of school districts regarding the adoption of ad valorem tax rates. Specifically, it introduces a new subsection (e-1) that prohibits a school district's governing body from adopting a tax rate that exceeds the district's voter-approval tax rate in any tax year where the governing body has previously adopted such a rate, an election was held to determine the approval of that rate, and the voters did not approve the proposition.

This change aims to enhance accountability and ensure that school districts cannot repeatedly impose tax rates that exceed voter approval without the consent of the electorate. The new provisions will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date.

Statutes affected:
Introduced: Tax Code 26.042 (Tax Code 26)