House Bill No. 5444 amends the Texas Tax Code to establish new restrictions on school districts regarding the adoption of ad valorem tax rates. Specifically, it introduces a new subsection (e-1) to Section 26.042, 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.

The changes outlined in this bill will take effect on January 1, 2026, and will apply to ad valorem tax years beginning on or after that date. This legislation aims to enhance accountability and ensure that school districts cannot repeatedly impose tax rates that have been rejected by voters, thereby reinforcing the importance of voter approval in the tax rate adoption process.

Statutes affected:
Introduced: Tax Code 26.042 (Tax Code 26)
House Committee Report: Tax Code 26.042 (Tax Code 26)