Bill > HB5502

This bill proposes comprehensive changes to the way Texas local governments calculate and approve property tax rates, focusing on modifying tax rate calculation formulas, voter approval processes, and eliminating several existing statutory provisions related to taxation. Specifically, the bill removes references to "new property value" from various tax rate calculation formulas, simplifies the voter-approval tax rate calculation process, eliminates certain existing tax rate provisions (such as sections related to special taxing units and municipal tax rates), and modifies how districts determine whether a tax rate increase requires voter approval. The bill affects multiple types of local government entities including school districts, counties, municipalities, and special districts, and establishes new definitions and procedures for calculating no-new-revenue tax rates and voter-approval tax rates. Notably, the bill repeals several existing sections of the Tax Code and other codes, streamlining the tax rate setting process. The changes are designed to provide more transparency and consistency in how local governments set property tax rates, with the modifications set to take effect for ad valorem tax years beginning on or after January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5502