Bill > HB79

This bill aims to reduce school district maintenance and operations ad valorem (property) taxes by creating a new mechanism for using surplus state revenue. The bill modifies the state compression percentage for school property taxes, allowing the commissioner of education to reduce this percentage based on surplus general revenue. Specifically, for each state fiscal biennium, the comptroller will allocate 90 percent of any general revenue that exceeds the consolidated general revenue appropriations limit to a property tax relief fund. 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 and would instead receive state funding as if they maintained their maximum compressed tax rate. The bill includes a provision that any surplus funds beyond what is needed for property tax relief can be appropriated for other purposes. The changes will take effect beginning with the state fiscal biennium starting September 1, 2027, with the bill itself becoming effective 91 days after the end of the legislative session.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB79