Bill > HB250

This bill modifies how ad valorem (property) tax rates are calculated and approved in Texas, primarily focusing on simplifying and standardizing tax rate calculations for various taxing units. The bill eliminates several existing provisions related to tax rate calculations, such as removing references to specific tax rate multipliers (like 1.08 or 1.035) and removing separate calculations for different types of taxing units. It changes the process for how a taxing unit can adopt a tax rate that exceeds the voter-approval tax rate, making the approval process more uniform across different types of districts. The bill also provides a new definition for a "developed district" in water districts and makes conforming changes to various sections of the Tax Code and Water Code. Specifically, the bill simplifies the voter-approval tax rate calculation, removes some existing distinctions between different types of taxing units, and streamlines the process for tax rate elections. The changes will apply to ad valorem taxes imposed for tax years beginning on or after the effective date of January 1, 2026, and aim to create a more straightforward and consistent approach to property tax rate setting in Texas.