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 the voter-approval tax rate. The bill mandates that if a school district's guaranteed level of state and local funds per weighted student exceeds the previous year's level, the district must reduce its tax rate accordingly. Additionally, it prohibits districts from increasing their maintenance and operations tax rate beyond a specified maximum if they are required to reduce their tax rate under this new regulation. The bill also introduces new definitions and calculations for "no-new-revenue maintenance and operations rate" and "voter-approval tax rate," while clarifying the processes for calculating these rates in relation to additional sales and use taxes.

Moreover, the bill amends various sections of the Water Code and Tax Code, focusing on the governance and financial operations of developed districts. It defines a "developed district" as one that has financed and completed all necessary infrastructure to serve at least 95% of its projected build-out. The bill requires the board of a developed district to include specific financial documents in their annual budget and modifies public notice requirements for tax rate hearings to enhance transparency. It also streamlines the voter-approval tax rate process by establishing new thresholds for when elections must be held to approve tax rates that exceed specified limits, repealing outdated provisions, and making the changes effective on January 1, 2026, for tax years beginning on or after that date.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 (Tax Code 31, Water Code 49, Tax Code 26, Tax Code 44, Special District Local Laws Code 3828, Education Code 48, Special District Local Laws Code 8876)