Bill > HB5226

This bill modifies the Texas Tax Code's calculation methods for the no-new-revenue tax rate and voter-approval tax rate, making several technical changes to how these rates are determined. Specifically, the bill removes references to "maintenance and operations" and "lost property levy" from the calculation formulas, and replaces some specific terminology. The no-new-revenue tax rate, which represents the tax rate that would generate the same total property tax revenue as the previous year, will now be calculated using a slightly simplified formula. The voter-approval tax rate, which determines the maximum tax rate that can be set without triggering a voter referendum, will also have minor changes in its calculation for both special taxing units (like hospitals or fire departments) and other taxing units. These changes appear to streamline the tax rate calculation process by removing some specific line items and simplifying the mathematical formulas used to determine tax rates. The bill is set to take effect on September 1, 2025, giving local taxing units time to prepare for the new calculation methods.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5226