Texas House Bill HB3733

Texas 2019 - 86th Regular

Caption

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.

Impact

The bill's implementation is intended to impact Texas school districts significantly by directly influencing their funding mechanisms through the property tax relief constrictions. It seeks to stabilize and potentially lower the school district maintenance and operations tax rates, which have been a contentious issue among taxpayers. By channeling surplus revenue into the property tax relief fund, the bill aims to create a more predictable and potentially diminishing tax environment for residents.

Summary

House Bill 3733 is focused on the allocation and deposit of surplus state revenue specifically for the purpose of providing property tax relief. The bill stipulates that 90 percent of any general revenue that exceeds a certain threshold from the previous biennium will be allocated to a dedicated property tax relief fund. The funds will be utilized to reduce the maintenance and operations ad valorem taxes imposed by school districts, aiming to alleviate the financial burden on property owners and improve the affordability of education funding in Texas.

Contention

While proponents of HB 3733 argue that it provides essential tax relief for property owners and promotes financial fairness in schooling, opponents might raise concerns about the adequacy and sustainability of funding for school operations. The stipulation that funds allocated for property tax relief can only be appropriated to the Texas Education Agency for this specific purpose is also a point of discussion, as it might limit flexibility in addressing diverse educational funding needs across districts. Overall, the legislation underscores the ongoing debate regarding the balance between taxation, school funding, and economic stability in Texas.