The bill, H.B. No. 5444, amends Section 26.042 of the 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 a tax year if certain conditions are met. These conditions include the prior adoption of a tax rate exceeding the voter-approval rate, the holding of an election to determine approval of that tax rate, and the failure of voters to approve the tax rate in that election.

The changes made by 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 adhere to voter preferences regarding tax rates.

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