S.B. No. 3026 aims to amend the calculation of ad valorem tax rates for taxing units in Texas, particularly focusing on the voter-approval tax rate and the no-new-revenue tax rate. The bill mandates that if a school district's guaranteed funding level exceeds the previous year's, the district must reduce its tax rate accordingly and cannot increase its maintenance and operations tax rate beyond a specified limit. It also clarifies that certain sections of the Tax Code, such as 26.042, are no longer applicable to specific tax impositions, streamlining the tax calculation process. Additionally, the bill revises the definitions and calculations related to the no-new-revenue maintenance and operations rate, ensuring accurate reflection of factors like sales tax gains or losses in tax rate calculations.

Moreover, the bill introduces a new definition of "developed district," which refers to a district that has financed and completed necessary infrastructure to serve at least 95% of its projected build-out. It requires the board of a developed district to include specific financial documents, such as audited financial statements and bond transcripts, in their annual budget. The bill also modifies public notice requirements for tax rate hearings to better inform residents about potential tax increases. It revises voter-approval tax rate calculations, eliminating previous thresholds for tax increases and establishing new criteria for when an election must be held to approve tax rates. The changes are set to take effect on January 1, 2026, and will apply to 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 (Education Code 48, Special District Local Laws Code 3828, Water Code 49, Tax Code 31, Tax Code 44, Special District Local Laws Code 8876, Tax Code 26)