Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

89(R) HB 275 - Introduced version - Bill Text

89R918 KJE-F

By: Cain

H.B. No. 275

A BILL TO BE ENTITLED

AN ACT

relating to reducing school district maintenance and operations ad

valorem taxes through the use of certain surplus state revenue.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 48.255, Education Code, is amended by

amending Subsection (b) and adding Subsections (d) and (e) to read

as follows:

(b)
Subject to Subsection (d), the
[
The
] state compression

percentage is the lower of:

(1) 93 percent, or a lower percentage set by

appropriation for a school year;

(2) the percentage determined by the following

formula:

SCP = PYCP X 1.025/(1 + ECPV); or

(3) the percentage determined under this section for

the preceding school year.

(d)

For each school year, the commissioner shall reduce the

state compression percentage determined under Subsection (b) to the

lowest percentage possible as a result of:

(1)

money deposited to the credit of the property tax

relief fund under Section 403.109(e), Government Code; and

(2)

any additional money appropriated for purposes of

this subsection.

(e)

Notwithstanding any other law, if for any school year

the commissioner determines under Subsection (b) or (d) that the

state compression percentage is zero:

(1)

a school district may not impose a tier one

maintenance and operations tax for that school year or for any

subsequent school year; and

(2)

each school district is entitled to funding under

Chapter 46 and this chapter for each school year as if the district

had:

(A)

a tier one maintenance and operations tax

rate equal to the district's maximum compressed tax rate determined

under Section 48.2551; and

(B)

no local share for purposes of Section

48.256.

SECTION 2. Section 403.109, Government Code, is amended by

adding Subsections (e) and (f) to read as follows:

(e)

For each state fiscal biennium beginning before a

determination by the commissioner of education under Section

48.255(e), Education Code, the comptroller shall:

(1)

allocate for deposit to the credit of the fund

general revenue in an amount equal to 90 percent of the amount by

which the amount of general revenue received in that biennium

exceeds the amount of consolidated general revenue appropriations,

as defined by Section 316.001, that could be appropriated within

the limit on the rate of growth of those appropriations adopted

under Section 316.005 for that biennium; and

(2)

periodically deposit to the credit of the fund the

general revenue allocated under Subdivision (1), with the final

deposit for that biennium to be made not later than the 90th day of

the next state fiscal biennium.

(f)

Notwithstanding any other provision of this section,

and except as otherwise provided by this subsection, money

deposited to the credit of the fund under Subsection (e) may be

appropriated only to the Texas Education Agency for use in

providing property tax relief through reduction of the state

compression percentage, as defined by Section 48.255, Education

Code. If the amount of money available to be appropriated under

this subsection for a state fiscal biennium exceeds the amount of

school district maintenance and operations taxes the commissioner

of education estimates to be payable for that biennium, the surplus

amount may be appropriated for any purpose.

SECTION 3. This Act applies beginning with the state fiscal

biennium beginning September 1, 2027.

SECTION 4. This Act takes effect September 1, 2025.