By: Cain H.B. No. 985
A BILL TO BE ENTITLED
AN ACT
relating to reducing school district maintenance and operations ad
valorem taxes through the use of certain surplus state revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 48.255, Education Code, is amended by
amending Subsection (b) and adding Subsections (d) and (e) to read
as follows:
(b) Subject to Subsection (d), the [The] state compression
percentage is the lower of:
(1) 93 percent, or a lower percentage set by
appropriation for a school year;
(2) the percentage determined by the following
formula:
SCP = PYCP X 1.025/(1 + ECPV); or
(3) the percentage determined under this section for
the preceding school year.
(d) For each school year, the commissioner shall reduce the
state compression percentage determined under Subsection (b) to
the lowest percentage possible as a result of:
(1) money deposited to the credit of the property tax
relief fund under Section 403.109(e), Government Code; and
(2) any additional money appropriated for purposes of
this subsection.
(e) Notwithstanding any other provision, if for any school
year the commissioner determines under Subsection (b) or (d) that
the state compression percentage is zero:
(1) a school district may not impose a tier one
maintenance and operations tax for that school year or for any
subsequent school year; and
(2) each school district is entitled to funding under
Chapter 46 and this chapter for each school year as if the district
had:
(A) a tier one maintenance and operations tax
rate equal to the district's maximum compressed tax rate
determined under Section 48.2551; and
(B) no local share for purposes of Section
48.256.
SECTION 2. Section 403.109, Government Code, is amended by
adding Subsections (e) and (f) to read as follows:
(e) For each state fiscal biennium beginning before a
determination by the commissioner of education under Section
48.255(e), Education Code, the comptroller shall:
(1) allocate for deposit to the credit of the fund
general revenue in an amount equal to 90 percent of the amount by
which the amount of general revenue received in that biennium
exceeds the amount of consolidated general revenue appropriations,
as defined by Section 316.001, that could be appropriated within
the limit on the rate of growth of those appropriations adopted
under Section 316.005 for that biennium; and
(2) periodically deposit to the credit of the fund the
general revenue allocated under Subdivision (1), with the final
deposit for that biennium to be made not later than the 90th day of
the next state fiscal biennium.
(f) Notwithstanding any other provision of this section,
except as otherwise provided by this subsection, money deposited to
the credit of the fund under Subsection (e) may be appropriated only
to the Texas Education Agency for use in providing property tax
relief through reduction of the state compression percentage, as
defined by Section 48.255, Education Code. If the amount of money
available to be appropriated under this subsection for a state
fiscal biennium exceeds the amount of school district maintenance
and operations taxes the commissioner of education estimates to be
payable for that biennium, the legislature may appropriate the
surplus amount for any purpose.
SECTION 3. This Act applies beginning with the state fiscal
biennium beginning September 1, 2023.
SECTION 4. This Act takes effect on the 91st day after the
last day of the legislative session.