Texas Senate bill by Sen. Bettencourt amends tax rate rules for school districts and taxing units

Passed bill authored by State Sen. Paul Bettencourt seeks to revise tax rate calculations and public meeting notices for school districts and other taxing units, aiming to enhance transparency and oversight in tax matters, according to the Texas Legislature website.

In the Senate, five Democrats and 20 Republicans voted in favor of the bill, while six Democrats opposed it.

Meanwhile, in the House, 21 Democrats and 80 Republicans voted in favor, while 29 Democrats and three Republicans voted against it.

Paul Bettencourt introduced the bill in the Texas Senate on Wednesday, Feb. 19, during the 89th regular legislative session.

Bettencourt graduated from Texas A&M University with a BS.

Bettencourt, a Republican, was elected to the Texas State Senate in 2015 to represent the state’s 7th Senate district, replacing previous state senator Dan Patrick.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the current debt rate and tax rate of a taxing unit for ad valorem tax purposes’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends sections of the Education Code and the Tax Code regarding the determination of tax rates for school districts and other taxing units for ad valorem tax purposes. It specifies requirements for the notice of public meetings on budget and proposed tax rates, including size and text specifications, and necessitates detailed comparisons of current and previous fiscal year budgets, tax rates, and levies. The bill mandates the posting of specific financial information on a taxing unit’s website by Aug. 7, including tax rates, debt obligations, and fund balances. It allows taxing unit governing bodies to approve certain tax rate increases upon meeting specified motion requirements and obtaining sufficient member approval. It also outlines the process for recalculating the voter-approval tax rate if an increased rate is applied. The act takes effect Jan. 1, 2026, applying to ad valorem taxes for that tax year or later.

The bill received its final legislative approval on Saturday, May 24, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.