TX SB3026

Eliminates the "new property value" exclusion from tax rate calculations, meaning taxing units would no longer subtract the value of new construction when calculating no-new-revenue and voter-approval tax rates

Removes the 3.5% and 8% automatic tax rate increase allowances previously built into voter-approval tax rate formulas, effectively setting the voter-approval rate equal to the no-new-revenue maintenance and operations rate plus current debt rate

Requires an automatic election to approve any proposed tax rate that exceeds the voter-approval tax rate for all taxing units, eliminating the distinction between "special taxing units" and other entities and removing the de minimis rate exception

Repeals Section 26.042 (unused increment rate provisions) and Section 26.075 (petition-based tax rate elections), along with related provisions in the Water Code that established different election thresholds for various water district classifications

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