Texas bill allocates surplus state revenue to lower school district property taxes

Original title: Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

Last action · July 14, 2025: FiledSponsors: Briscoe Cain and 8 others

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What This Bill Proposed

Texas HB 62 requires the state comptroller to allocate 90 percent of certain general revenue surpluses to the property tax relief fund, which the commissioner of education must use to lower the for school district property taxes beginning September 1, 2027.

Why it matters

Property owners in Texas school districts see reduced maintenance and operations tax rates when surplus state revenue is deposited into the property tax relief fund, altering local tax burdens and state education funding formulas.

Background

The state compression percentage is a mechanism used in Texas school finance to reduce local school district property tax rates using state funds. context
The Texas Comptroller of Public Accounts manages state revenues, tax collection, and the allocation of funds to various state accounts. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Property owners

Property owners experience lower school district maintenance and operations tax rates when surplus state revenue is used to reduce the state compression percentage.

Directly affected

School districts

School districts receive adjusted state funding and face restrictions on imposing tier one maintenance and operations taxes if the state compression percentage drops to zero.

Directly affected

Comptroller of Public Accounts

The comptroller is required to calculate surplus general revenue and make periodic deposits into the property tax relief fund.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

How is the amount of surplus revenue determined for property tax relief?

The comptroller calculates the amount by which general revenue received in a biennium exceeds consolidated general revenue appropriations within the statutory rate of growth limit, then allocates 90 percent of that excess.

What happens if the state compression percentage drops to zero?

School districts cannot impose a for that school year or subsequent years, and districts receive funding as if they had a maximum compressed tax rate with no local share.

What else do you want to know?

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Where This Stands

This bill did not become law - Died at adjournment · introduced in the House.

Procedural history

1 action

Jul 14, 2025HouseIntroduced
Filed

Version history

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