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Bill

HB 5226

Relating to the calculation of the no-new-revenue tax rate.

89th Legislature (2025) Introduced by Brian Harrison

HB 5226 revises Texas school district tax rate calculations to change how much revenue schools can collect without triggering voter approval requirements.

Referred to Ways & Means
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Bill Summary · HB 5226

Legislative bill overview

HB 5226 modifies how Texas calculates the "no-new-revenue" (NNR) tax rate for school districts, which is the maximum tax rate allowed without generating additional revenue beyond the prior year. The bill adjusts the methodology used to compute this baseline calculation, affecting how much schools can tax property owners while maintaining revenue neutrality across fiscal years.

Why is this important

School districts use the NNR rate to avoid triggering voter approval requirements for tax increases under Texas law. Changes to this calculation directly impact local property tax bills and school funding levels. Small adjustments to the formula can result in millions of dollars in differences across the state's 1,200+ school districts.

Potential points of contention

  • Property tax impact: Altering the NNR calculation could either increase or decrease allowable tax rates, affecting homeowners and businesses depending on the formula change direction
  • School funding implications: Districts may gain or lose revenue capacity without voter approval, raising equity questions about funding disparities between districts
  • Formula complexity: The technical nature of tax rate calculations makes it difficult for the public to understand the real-world consequences, potentially obscuring significant policy shifts

Compiled from official sources — confirm details with the bill’s official record.

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