Texas 2023 - 88th 2nd C.S.

Texas House Bill HB42 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1	By: Troxclair H.B. No. 42
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to reducing school district maintenance and operations ad
7	7	valorem taxes through the use of certain surplus state revenue.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 48.255, Education Code, is amended by
10	10	amending Subsection (b) and adding Subsections (d) and (e) to read
11	11	as follows:
12	12	(b) Subject to Subsection (d), the [The] state compression
13	13	percentage is the lower of:
14	14	(1) 93 percent, or a lower percentage set by
15	15	appropriation for a school year;
16	16	(2) the percentage determined by the following
17	17	formula:
18	18	SCP = PYCP X 1.025/(1 + ECPV); or
19	19	(3) the percentage determined under this section for
20	20	the preceding school year.
21	21	(d) For each school year, the commissioner shall reduce the
22	22	state compression percentage determined under Subsection (b) to the
23	23	lowest percentage possible as a result of:
24	24	(1) money deposited to the credit of the property tax
25	25	relief fund under Section 403.109(e), Government Code; and
26	26	(2) any additional money appropriated for purposes of
27	27	this subsection.
28	28	(e) Notwithstanding any other law, if for any school year
29	29	the commissioner determines under Subsection (b) or (d) that the
30	30	state compression percentage is zero:
31	31	(1) a school district may not impose a tier one
32	32	maintenance and operations tax for that school year or for any
33	33	subsequent school year; and
34	34	(2) each school district is entitled to funding under
35	35	Chapter 46 and this chapter for each school year as if the district
36	36	had:
37	37	(A) a tier one maintenance and operations tax
38	38	rate equal to the district's maximum compressed tax rate determined
39	39	under Section 48.2551; and
40	40	(B) no local share for purposes of Section
41	41	48.256.
42	42	SECTION 2. Section 403.109, Government Code, is amended by
43	43	adding Subsections (e) and (f) to read as follows:
44	44	(e) The comptroller shall:
45	45	(1) allocate for deposit to the credit of the fund
46	46	general revenue in an amount equal to 90 percent of the amount by
47	47	which the amount of general revenue received in a state fiscal
48	48	biennium exceeds 104 percent of the total amount of general revenue
49	49	that was received during the preceding state fiscal biennium; and
50	50	(2) periodically deposit to the credit of the fund the
51	51	general revenue allocated under Subdivision (1), with the final
52	52	deposit for that biennium to be made not later than the 90th day of
53	53	the next state fiscal biennium.
54	54	(f) Notwithstanding any other provision of this section,
55	55	money deposited to the credit of the fund under Subsection (e) may
56	56	be appropriated only to the Texas Education Agency for use in
57	57	providing property tax relief through reduction of the state
58	58	compression percentage, as defined by Section 48.255, Education
59	59	Code.
60	60	SECTION 3. This Act applies beginning with the state fiscal
61	61	biennium beginning September 1, 2025.
62	62	SECTION 4. This Act takes effect September 1, 2023.