Texas House Bill HB122

Texas 2021 - 87th 1st C.S.

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

If enacted, HB 122 will have a significant impact on state laws regarding property taxes and education funding. The funds allocated to the property tax relief will be appropriated exclusively to the Texas Education Agency, which is responsible for distributing the funds to relieve the pressures of local school district taxes. This amendment to the Government Code could provide some degree of financial relief to homeowners, potentially leading to a decrease in ad valorem tax rates for education, which has been a point of concern for many communities.

Summary

House Bill 122 focuses on the allocation and deposit of surplus state revenue specifically to the property tax relief fund. This initiative aims to reduce maintenance and operations ad valorem taxes for school districts in Texas. The bill mandates that 90 percent of surplus general revenue, exceeding 104 percent of the revenue from the previous biennium, be allocated to this fund. The goal is to ease the tax burden on property owners, particularly in light of rising costs associated with maintaining and operating schools.

Contention

Discussion around HB 122 may generate contention regarding how the allocation of surplus revenue will influence long-term funding for education. While supporters advocate for the tax relief aimed at property owners, critics may raise concerns about whether the allocation to the property tax relief fund sufficiently addresses the broader issues of educational funding. There may also be debates about the adequacy and equity of funding among various school districts, particularly between wealthier and less affluent areas.