H.B. No. 5502 seeks to amend the Texas Tax Code and Education Code to adjust the calculation of ad valorem tax rates for school districts. The bill mandates that if a school district's guaranteed level of state and local funds per weighted student exceeds the previous year's amount, the district must lower its tax rate accordingly. It also restricts the maintenance and operations tax rate from exceeding a specified maximum during the year of the reduction. Additionally, the bill clarifies that certain provisions of the Tax Code will not apply to taxes imposed under specific sections of the Special District Local Laws Code.

The bill includes several deletions and insertions aimed at refining tax rate calculations, particularly concerning the no-new-revenue tax rate and voter-approval tax rate. It removes references to "new property value" in various formulas, which may alter how these rates are determined. Furthermore, it modifies the conditions under which voter approval is required for tax rates exceeding the voter-approval tax rate, thereby streamlining the process for certain taxing units. Overall, H.B. No. 5502 aims to enhance clarity and efficiency in tax rate calculations while ensuring that school districts remain fiscally responsible in light of changing state funding levels.

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 (Special District Local Laws Code 8876, Water Code 49, Tax Code 31, Tax Code 26, Special District Local Laws Code 3828, Tax Code 44, Education Code 48)