S.B. No. 1502 amends the Tax Code to establish new restrictions on the authority of school districts regarding the adoption of ad valorem tax rates. Specifically, it introduces Subsection (e-1), which 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 approve that rate, and the voters did not approve the proposition. This change aims to enhance accountability and ensure that tax increases are subject to voter approval.
The new provisions will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date. The bill passed both the Senate and the House with significant support, indicating a legislative intent to strengthen the role of voters in determining tax rates within school districts.
Statutes affected: Introduced: Tax Code 26.042 (Tax Code 26)
Senate Committee Report: Tax Code 26.042 (Tax Code 26)
Engrossed: Tax Code 26.042 (Tax Code 26)
House Committee Report: Tax Code 26.042 (Tax Code 26)
Enrolled: Tax Code 26.042 (Tax Code 26)