Texas House Bill HB959

Texas 2019 - 86th Regular

Caption

Relating to the calculation of the rollback tax rate of a school district.

Impact

The immediate impact of HB959 is that it may allow some school districts to achieve a higher rollback rate than previously possible, potentially preserving funding for essential services and programs within those districts. This adjustment is particularly relevant for districts that have had stable or growing funding requirements over the past decade. The change will apply starting with the 2019 tax year or 2020 for districts that have already adopted their rates before the law's effective date, thus affecting budget planning for those school districts significantly.

Summary

House Bill 959 focuses on the calculation of the rollback tax rate for school districts in Texas. The legislation amends Section 26.08 of the Tax Code to provide a new formula for determining a school district's rollback tax rate. Specifically, it establishes that for certain school districts whose tax rates were approved in elections from the 2006 tax year onwards, the rollback tax rate should be the greater of the amount computed under the existing formula or the sum of the highest maintenance and operations tax rate adopted in the past and the district's current debt rate. This change is intended to provide a more equitable tax framework for schools by ensuring that they can retain necessary funding levels while rolling back their rates when required.

Contention

While supporters of HB959 argue that it brings necessary flexibility to school funding and prevents detrimental financial strains on districts operating under strict tax limitations, opponents might contend that it could lead to inconsistencies in funding across other districts that do not qualify for the new calculation. Concerns revolve around the potential loss of revenue for other parts of the education system, which could be centralized around a particular set of schools benefiting from the new tax rate calculation. Thus, the debate centers around balancing equitable school funding with the fiscal health of all school districts in the state.