S.B. No. 3026 proposes significant amendments to the calculation of ad valorem tax rates for taxing units in Texas, with a particular emphasis on school districts and special districts. The bill mandates that school districts must lower their tax rates if the guaranteed level of state and local funds per weighted student surpasses the previous year's amount. Furthermore, during this tax rate reduction, districts are restricted from increasing their maintenance and operations tax rate beyond a specified limit. The bill also clarifies that certain sections of the Tax Code concerning voter-approval tax rates do not apply to taxes imposed under specific sections of the Special District Local Laws Code.

In addition to these provisions, the bill removes references to certain sections of the Tax Code that previously applied to special taxing units and introduces new calculations for the "no-new-revenue maintenance and operations rate" and "voter-approval tax rate." It also updates the procedures for adopting tax rates, including requirements for public notice and hearings, and establishes new thresholds for when elections must be held to approve tax rates. The bill aims to streamline the tax rate approval process, ensuring that tax rates accurately reflect current funding levels and expenditures. These changes are set to take effect on January 1, 2026, for 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 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 3828, Education Code 48, Water Code 49, Tax Code 26, Special District Local Laws Code 8876, Tax Code 44, Tax Code 31)