Bill > HB97

This bill aims to reduce school district maintenance and operations ad valorem (property) taxes by creating a mechanism to use surplus state revenue. The bill modifies existing law to require the state comptroller to allocate 90 percent of any general revenue that exceeds the state's consolidated general revenue appropriations limit 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 taxes) to the lowest possible level using these funds. If the commissioner determines that the state compression percentage can be reduced to 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 a maximum compressed tax rate. The bill specifies that this mechanism would begin with the state fiscal biennium starting September 1, 2027, and if the amount of money in the fund exceeds the estimated school district maintenance and operations taxes, the legislature may appropriate any surplus for other purposes. The act will take effect 91 days after the end of the legislative session.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB97