Relating to the limitation on the maximum compressed tax rate of a school district.

SB 2537 amends Texas law to adjust how school districts calculate their maximum property tax rate (called the "compressed tax rate"). It changes the formula so that if a district's calculated rate would be less than 90% of another district's rate, it must instead set its rate to equal 90% of that other district's rate (previously 85%). This directly affects all Texas public school districts that determine their tax rates under this specific provision of the Education Code. The change takes effect September 1, 2025.