TX SB2665

Allows taxing units to conditionally adopt or increase local option residence homestead exemptions contingent on voter approval of tax rates or bond issuances by the same or another taxing unit

Permits governing bodies to adopt a conditional tax rate lower than their primary adopted rate, which takes effect only if voters approve specified tax rate increases or bond elections

Requires taxing units adopting conditional rates or exemptions to include specific descriptions of the triggering conditions in their official ordinances, resolutions, or orders, as well as in all required tax rate notices

Mandates that if a conditional tax rate takes effect after tax bills have been mailed, the assessor must issue corrected bills and automatically refund overpayments to property owners without requiring an application

Establishes that refunds from conditional tax rate changes must be paid within 60 days to avoid 1% monthly interest, with liability arising on the date the conditional rate becomes effective

Takes effect January 1, 2026, and applies to ad valorem tax years beginning on or after that date