S.B. No. 1502 amends the Tax Code by adding a new subsection that restricts the authority of school district governing bodies regarding the adoption of ad valorem tax rates. Specifically, the bill states that a school district cannot adopt a tax rate that exceeds its 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 provision aims to ensure that school districts cannot repeatedly impose higher tax rates without voter consent after a failed election.

The changes introduced by this bill will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date. The legislation passed both the Senate and the House with significant support, indicating a strong legislative intent to enhance accountability and voter control over school district tax rates.

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)