H.B. No. 5502 amends the Texas Education Code and Tax Code to adjust the calculation of ad valorem tax rates for school districts and special districts. The bill requires school districts to reduce their tax rates if their guaranteed level of state and local funds per weighted student exceeds the previous year's level. It also introduces provisions that limit the increase of maintenance and operations tax rates when a reduction is necessary. Furthermore, the bill clarifies that certain sections of the Tax Code regarding voter-approval tax rates do not apply to taxes imposed under specific sections of the Special District Local Laws Code.

In addition, the bill revises definitions and calculations for "no-new-revenue maintenance and operations rate" and "voter-approval tax rate," removing references to "new property value" in several formulas. It establishes new guidelines for calculating these rates in relation to additional sales and use taxes, ensuring accurate reflection of tax changes. The legislation also introduces a new definition of "developed district," updates public hearing requirements for proposed tax rates, and modifies conditions for tax codes related to bond payments. Several existing law sections are repealed to streamline the tax rate approval process, with the changes set to take effect on January 1, 2026, for tax years beginning on or after that date.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 8876.152, Tax Code 26.012, Tax Code 44.004, Tax Code 26.041, Tax Code 26.044, Tax Code 26.0441, Tax Code 26.0442, Tax Code 26.0443, Tax Code 26.0444, Tax Code 26.07, Tax Code 31.12, Tax Code 31.112, Water Code 49.057, Water Code 49.107, Water Code 49.108, Water Code 49.236, Water Code 49.23601 (Education Code 48, Water Code 49, Special District Local Laws Code 3828, Tax Code 26, Special District Local Laws Code 8876, Tax Code 31, Tax Code 44)