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TX SB2775
Bill
Status
3/14/2025
Primary Sponsor
Adam Hinojosa
Click for details
AI Summary
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Eliminates the distinction between "special taxing units" and other taxing units for calculating voter-approval tax rates, removing the 8% multiplier for special taxing units and the 3.5% multiplier plus unused increment rate for other taxing units from the formula
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Changes the voter-approval tax rate formula to simply equal the no-new-revenue maintenance and operations rate plus the current debt rate, without any automatic percentage increase allowance
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Modifies election requirements so that municipalities with populations of 30,000 or more must hold voter approval elections when adopting tax rates exceeding the voter-approval rate or de minimis rate
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Repeals Section 26.042 of the Tax Code (related to special taxing unit calculations) and Section 26.013 (unused increment rate definition), while creating a new unused increment rate provision specifically for water districts under Chapter 49 of the Water Code
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Takes effect January 1, 2026, and applies only to ad valorem taxes imposed for tax years beginning on or after that date
Legislative Description
Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.
Taxation
Last Action
Referred to Local Government
4/3/2025