Senate Bill No. 2775 aims to amend the calculation of certain ad valorem tax rates for taxing units in Texas, particularly focusing on the voter-approval tax rate. The bill introduces new provisions that require school districts to reduce their tax rates when the guaranteed level of state and local funds per weighted student exceeds the previous year's level. Additionally, it specifies that during such reductions, districts cannot increase their maintenance and operations tax rates beyond a set maximum. The bill also clarifies that certain sections of the Tax Code, including those related to voter-approval tax rates, do not apply to specific taxing units, such as special taxing units and municipalities with populations of 30,000 or more.

The legislation includes several deletions from existing law, notably the removal of references to specific sections of the Tax Code that previously governed tax calculations. It also introduces new definitions and formulas for calculating the no-new-revenue tax rate and voter-approval tax rate, particularly in relation to additional sales and use taxes. Furthermore, the bill repeals several provisions that are deemed outdated or unnecessary, streamlining the tax calculation process. 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, Special District Local Laws Code 3828.157, Special District Local Laws Code 3828.153, Tax Code 26.04, Tax Code 26.041, Tax Code 26.063, Tax Code 26.07, Tax Code 26.075, Water Code 49.107, Water Code 49.108, Water Code 49.23602 (Education Code 48, Water Code 49, Special District Local Laws Code 3828, Tax Code 26)