The bill amends the Education Code and Tax Code to improve property tax-related notifications from taxing units and appraisal districts. A significant change is the requirement for school districts to directly mail notices of budget and proposed tax rate meetings to property owners, rather than relying solely on newspaper publications. These notices must now include specific statements about enrollment changes, inflation rates, and estimated tax collections, ensuring property owners are well-informed about the factors affecting their taxes. The bill also introduces new definitions for terms such as "adjusted collection rate" and "adjusted tax collections," which are crucial for calculating tax implications based on enrollment and inflation.

Additionally, the bill mandates that notices be prominently displayed on taxing units' websites and outlines the necessary content for public meeting notices, including comparisons of proposed budgets and tax rates with previous years. It emphasizes transparency in the tax rate-setting process by requiring detailed information about the financial implications for property owners. The comptroller is tasked with calculating and publishing the annual inflation rate, which taxing units must use in their computations. The changes will apply to ad valorem tax years beginning on or after January 1, 2026, allowing taxing units time to adapt to the new requirements. Overall, the bill aims to enhance clarity and accountability in property tax assessments and the financial data provided to the public.

Statutes affected:
Introduced: Education Code 44.004, Education Code 44.0041, Tax Code 26.061, Tax Code 26.062, Tax Code 26.17, Water Code 49.236 (Tax Code 26, Education Code 44, Water Code 49)
House Committee Report: Education Code 44.004, Education Code 44.0041, Tax Code 26.061, Tax Code 26.062, Tax Code 26.17, Water Code 49.236 (Tax Code 26, Education Code 44, Water Code 49)
Engrossed: Education Code 44.004, Education Code 44.0041, Tax Code 26.061, Tax Code 26.062, Tax Code 26.17, Water Code 49.236 (Tax Code 26, Education Code 44, Water Code 49)