House Appropriations Chair John Zerwas has sent a request for opinion to Texas Attorney General Ken Paxton asking whether an independent school district must hold a tax ratification election when it adopts an ad valorem tax rate that is overall lower than the district’s rollback tax rate by offsetting a higher M&O rate and a lower debt service rate. While a district is generally does not need an election to reduce its ad valorem tax rate below the rollback rate by reducing both the M&O and debt service rates, the law is not clear on whether an election is required when a district achieves an ad valorem rate lower than the rollback rate by offsetting a raise in M&O with a lower debt service rate.
Rep. Zerwas Asks AG If ISDs Must Hold Ratification Elections When Adopting Overall Lower Tax Rate
