Bill > HB1030

This bill aims to reduce school district maintenance and operations ad valorem (property) taxes by creating a mechanism to use surplus state revenue. Specifically, the bill requires the state comptroller to allocate 90 percent of general revenue that exceeds 104 percent of the previous biennium's revenue to a property tax relief fund. The commissioner of education would then be required to reduce the state compression percentage (a factor used in calculating property tax rates) based on the money in this fund. If the state compression percentage reaches zero, school districts would no longer be required to impose a tier one maintenance and operations tax, but would still receive full funding as if they had maintained their maximum compressed tax rate. The bill would take effect on September 1, 2025, and apply beginning with the state fiscal biennium starting September 1, 2027. This approach is designed to provide property tax relief by using excess state revenue to effectively lower the tax burden on property owners while maintaining school district funding levels.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB1030