Bill > HB250

This bill modifies several aspects of Texas tax code related to ad valorem (property) tax calculations and voter approval processes. The bill makes significant changes to how tax rates are calculated and approved, particularly for school districts and special districts. Key provisions include simplifying the calculation of the "no-new-revenue" and "voter-approval" tax rates by removing complex multipliers and different formulas for special and non-special taxing units. The bill eliminates several existing sections of tax code related to tax rate calculations and reduces the circumstances under which a tax rate increase would trigger a mandatory election. For water districts, the bill modifies the definition of a "developed district" and changes the requirements for public hearings and tax rate notices. The bill also repeals multiple existing sections of tax code related to tax rate calculations, including sections about special tax rate provisions for different types of districts. Importantly, these changes will apply to ad valorem taxes imposed for tax years beginning on or after January 1, 2026, providing a clear implementation timeline for local government entities to adjust their tax rate calculation processes.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB250