H.B. No. 250 proposes significant amendments to the Special District Local Laws Code and the Tax Code, focusing on the calculation and approval process for ad valorem tax rates. The bill removes references to Sections 26.042 and 26.075 of the Tax Code, which are no longer relevant for certain taxes under the Special District Local Laws Code. It clarifies the definitions and calculations for the "no-new-revenue tax rate" and "voter-approval tax rate," ensuring they reflect changes in property values and sales tax revenues. Additionally, the bill modifies public notice and voter approval requirements for tax rates exceeding the voter-approval tax rate, mandating elections for such approvals to enhance transparency.

Furthermore, the bill amends the Water Code to adjust the calculation of the voter-approval tax rate, removing the previous cap on the operation and maintenance tax rate. It also repeals outdated sections from the Education Code, Local Government Code, and Tax Code, streamlining the overall tax rate approval process. These changes will take effect on January 1, 2026, and will apply to ad valorem taxes for tax years beginning on or after that date, aiming to maintain manageable property tax growth for residents.

Statutes affected:
Introduced: Special District Local Laws Code 3828.157, Special District Local Laws Code 8876.152, Tax Code 26.04, Tax Code 26.041, Tax Code 26.07, Tax Code 31.112, Water Code 6.30, Water Code 49.107, Water Code 49.108, Water Code 49.236, Water Code 49.23601 (Water Code 6, Tax Code 26, Special District Local Laws Code 3828, Tax Code 31, Water Code 49, Special District Local Laws Code 8876)