Bill > HB2878

This bill amends Texas tax and education codes to provide new financial flexibility for certain tax increment financing (TIF) reinvestment zones, specifically those created after January 1, 2005 (by municipalities) or after January 1, 2022 (by counties), that are larger than 500 acres and include a donated tract of over 20 acres for educational facilities. The bill allows municipalities, counties, or reinvestment zone boards to enter into new agreements or amend existing agreements with school districts to dedicate tax increment fund revenue for acquiring, constructing, or reconstructing educational facilities, either within or outside the zone. Additionally, they can contract with school districts to finance educational facility construction, with the condition that the construction and infrastructure costs are funded by the tax increment generated by the school district. The bill also ensures that school districts will receive state aid equal to the amount they are required to pay into the tax increment fund under this new provision, with this change in state aid applying beginning with the 2025-2026 school year. The bill will take effect immediately if it receives a two-thirds vote in the Texas legislature, otherwise it will take effect on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB2878