Bill > HB218

This bill amends the Texas Government Code to create a new mechanism for allocating surplus state general revenue to provide property tax relief for school districts. Specifically, the bill requires the state comptroller to allocate and deposit to the property tax relief fund any general revenue that exceeds 104 percent of the previous biennium's total revenue. The deposited funds can only be appropriated to the Texas Education Agency and must be used to reduce the state compression percentage, which directly impacts school district maintenance and operations ad valorem (property) taxes. The new provisions will take effect on September 1, 2025, and will first apply to the state fiscal biennium beginning September 1, 2027. This approach aims to provide a structured method for redirecting state revenue surplus specifically towards lowering local property tax burdens for school district operations.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB218