Relating to the dissemination of certain school district ad valorem tax-related information.

89(R) HB 4847 - Engrossed version - Bill Text

89R25316 PRL-F

By: Hunter, Isaac, Leo Wilson, Plesa,

H.B. No. 4847

Garcia Hernandez

A BILL TO BE ENTITLED

AN ACT

relating to the dissemination of certain school district ad valorem

tax-related information.

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

SECTION 1. Section 26.17, Tax Code, is amended by adding

Subsection (b-1) to read as follows:

(b-1)

This subsection applies only to property that is

located in one or more school districts that have a local revenue

level in excess of entitlement as specified by Section 48.257,

Education Code, and that, for the school year beginning in the

current tax year, have taken measures to reduce the district's

local revenue level in accordance with Section 49.002, Education

Code.

In addition to the information required by Subsection (b) of

this section, the database must include, with respect to each

property to which this subsection applies that is listed on the

appraisal roll for the appraisal district, the following

information, if applicable, for each school district in which the

property is located:

(1)

the percentage of the taxes for maintenance and

operations imposed by the district for the current tax year that the

district is required to pay under the agreement for the school year

beginning in the current tax year to purchase average daily

attendance credits;

(2)

the percentage of the taxes for maintenance and

operations imposed by the district for the current tax year that the

district is not required to pay under the agreement for the school

year beginning in the current tax year to purchase average daily

attendance credits; and

(3) the following statement:

"How do your property taxes fund public education?

The Texas

Legislature sets the level of funding per student that school

districts are entitled to retain for the maintenance and operations

of the district.

This funding comes first from local property taxes

and then from the state's general revenue.

After (name of school

district) collects the funds attributable to the district's local

tax collections for maintenance and operations, the state makes up

the difference to meet the funding level set by the Texas

Legislature.

Since the local tax collections in (name of school

district) exceed its state entitlement, (name of school district)

is required to reduce its local revenue level, which it has chosen

to do by paying a portion of its local tax collections as recapture

to the state.

The recaptured funds contribute to the state's

overall education funding pool and are used to help balance the

funding each school district receives.

By recapturing funds from

school districts, the state reduces the amount of money it needs to

allocate directly to districts not required to reduce their local

revenue level, freeing up additional resources to fund other state

priorities. This can create budgetary savings for the state.

"Where do your property taxes go?

(name of school district)

is required to pay (percentage described by Subdivision (1) for

applicable school district) of local tax collections to the state.

Recaptured local taxes sent to the state reduce the demand for other

state revenue that would be required for the state to contribute to

public education through the Foundation School Program."

SECTION 2. This Act takes effect January 1, 2026.