Bill > HB228

This bill amends the Texas Government Code to establish a new process for allocating surplus state revenue specifically for property tax relief in public schools. Under the proposed legislation, the state comptroller will be required to deposit half of any excess general revenue at the end of each state fiscal biennium into a fund designated for property tax reduction. This deposit must occur within 90 days after the biennium's conclusion and will be calculated by comparing the actual total available general revenue to the original biennial revenue estimate. The funds can only be appropriated to the Texas Education Agency and must be used to reduce the state compression percentage, which is a technical term related to how school property tax rates are calculated. The bill is set to take effect on September 1, 2025, and will first apply to the state fiscal biennium beginning September 1, 2027, meaning taxpayers could potentially see property tax relief through this mechanism starting in the 2027-2028 fiscal period.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB228