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Texas bill requires half of state surplus revenue to fund property tax relief

Original title: Relating to the allocation and deposit of certain surplus state revenue to the property tax relief fund for use in reducing school district maintenance and operations ad valorem taxes.

Last action · July 21, 2025: FiledSponsor: Cecil Bell

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Texas would require the comptroller to deposit half of any unspent surplus state revenue at the end of each fiscal biennium into the property tax relief fund to lower school district property taxes starting September 1, 2027.

Why it matters

School districts could receive dedicated state funding directed exclusively toward lowering local maintenance and operations tax rates for property owners.

Background
  • The Texas Legislature frequently debates mechanisms to utilize state budget surpluses to reduce local school district property taxes. context
  • The Texas Comptroller of Public Accounts produces a biennial revenue estimate to guide state budgeting. 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

Texas Education Agency

The agency is authorized to receive appropriations from the property tax relief fund to reduce the state compression percentage.

Directly affected

School districts

Districts receive state funding aimed at reducing maintenance and operations ad valorem taxes.

Directly affected

Property owners

Property tax burdens are lowered through reductions in school district maintenance and operations taxes.

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

Where does the money for property tax relief come from under this bill?
The funds come from one-half of the general revenue surplus that exceeds the comptroller's at the end of each state fiscal biennium.
Who receives the deposited money to administer the tax relief?
The money may be appropriated only to the Texas Education Agency.
When do these rules start applying?
The act applies beginning with the state fiscal biennium that begins on September 1, 2027.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

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

Procedural history

1 action
  1. Jul 21, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Surplus Revenue Mandate for Tax Relief

The bill shifts unbudgeted end-of-biennium general revenue surpluses directly into mandatory property tax reduction channels.

Connected Entities

Government Code, Texas Education Agency, Education Code and 1 more
otherGovernment Code“Amended by adding Subsections (e) and (f) to Section 403.109.”Map →
OrganizationTexas Education Agency“Receives appropriated money from the fund to provide property tax relief.”Map →
otherEducation Code“Defines the state compression percentage referenced in the bill.”Map →
OrganizationComptroller of Public Accounts“Responsible for depositing surplus state revenue into the property tax relief fu”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy35
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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