Bill > HB139

This bill modifies the calculation and approval process for ad valorem (property) tax rates in Texas, primarily focusing on simplifying and standardizing how tax rates are determined and voted on. The legislation makes several key changes to the Tax Code and Water Code, including removing references to specific tax rate calculation methods for different types of taxing units and eliminating distinctions between special taxing units and other taxing units. The bill removes provisions that previously allowed for different tax rate calculations based on the type or size of a taxing unit, and streamlines the process for determining when a tax rate requires voter approval. Specifically, it changes how the "no-new-revenue" and "voter-approval" tax rates are calculated, removing multipliers like 1.08 and 1.035 that were previously used for different types of units. The bill also repeals several sections of existing law related to tax rate calculations, including specific provisions for low tax rate districts. These changes aim to create a more uniform approach to property tax rate setting and provide clearer guidelines for when voters must approve tax rates that exceed certain thresholds. The bill will apply to ad valorem taxes imposed for tax years beginning on or after its effective date of January 1, 2026.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB139