BILL ANALYSIS Senate Research Center S.B. 1502 89R10467 TJB-D By: Bettencourt Local Government 3/14/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Interested parties have expressed concerns that some independent school districts (ISD) are not respecting the will of the voters after a taxpayer ratification election (TRE). It has been determined that after a failed TRE, certain school districts adopted a tax rate greater than the voter-approval tax rate. There have been situations where an ISD utilized a disaster exemption to adopt a tax rate several pennies higher than the voter-approval rate after the failed TRE. S.B. 1502 will ensure that if voters reject a TRE, the ISD will only be able to adopt the voter approval tax rate. As proposed, S.B. 1502 amends current law relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 26.042, Tax Code, by adding Subsection (e-1), as follows: (e-1) Prohibits the governing body of a school district from adopting a tax rate under Subsection (e) (relating to the response to certain natural disasters and lack of requirement for an election to approve a tax rate adopted by the governing body of a school district for that year) for a tax year in which the governing body previously adopted a tax rate that exceeded the school district's voter-approval tax rate, an election was held under Section 26.08 (Automatic Election to Approve Tax Rate of School District) for the purpose of determining whether to approve the district's adopted tax rate, and the proposition to approve the district's adopted tax rate was not approved by the voters of the district at the election. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: January 1, 2026.
BILL ANALYSIS
Senate Research Center S.B. 1502
89R10467 TJB-D By: Bettencourt
Local Government
3/14/2025
As Filed
Senate Research Center
S.B. 1502
89R10467 TJB-D
By: Bettencourt
Local Government
3/14/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Interested parties have expressed concerns that some independent school districts (ISD) are not respecting the will of the voters after a taxpayer ratification election (TRE). It has been determined that after a failed TRE, certain school districts adopted a tax rate greater than the voter-approval tax rate. There have been situations where an ISD utilized a disaster exemption to adopt a tax rate several pennies higher than the voter-approval rate after the failed TRE.
S.B. 1502 will ensure that if voters reject a TRE, the ISD will only be able to adopt the voter approval tax rate.
As proposed, S.B. 1502 amends current law relating to the authority of the governing body of a school district to adopt an ad valorem tax rate that exceeds the district's voter-approval tax rate.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 26.042, Tax Code, by adding Subsection (e-1), as follows:
(e-1) Prohibits the governing body of a school district from adopting a tax rate under Subsection (e) (relating to the response to certain natural disasters and lack of requirement for an election to approve a tax rate adopted by the governing body of a school district for that year) for a tax year in which the governing body previously adopted a tax rate that exceeded the school district's voter-approval tax rate, an election was held under Section 26.08 (Automatic Election to Approve Tax Rate of School District) for the purpose of determining whether to approve the district's adopted tax rate, and the proposition to approve the district's adopted tax rate was not approved by the voters of the district at the election.
SECTION 2. Makes application of this Act prospective.
SECTION 3. Effective date: January 1, 2026.