Texas House Bill HB156

Texas 2025 - 89th 1st C.S.

• Filed: 7/21/25

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 implementation of HB 156 is expected to have a significant impact on the funding mechanisms for Texas school districts starting from the fiscal biennium that begins on September 1, 2027. By utilizing surplus revenue, the bill proposes a longer-term approach to alleviating the financial burden associated with property taxes, particularly within the education sector. This shift in fiscal policy could enhance the stability of funding for schools while making educational financing more equitable across the state.

Summary

House Bill 156 focuses on the allocation and deposit of surplus state revenue into the property tax relief fund. This legislation aims to reduce school district maintenance and operations ad valorem taxes by redirecting excess state funds at the end of each biennium. Specifically, it states that the Comptroller of Public Accounts is required to deposit half of the surplus revenue into the fund for the benefit of local school districts, thus providing financial relief to property owners through lower taxes.

Contention

Notably, there may be points of contention surrounding the bill due to the reliance on surplus revenue which can be unpredictable. Critics may argue that tying financial relief directly to surplus funds could lead to inconsistencies in the availability of resources for property tax relief in subsequent years. Additionally, ensuring that the distribution of these funds adequately addresses the needs of all school districts, especially those that may be disproportionately affected by financial fluctuations, may become a focal point in discussions around HB 156. Advocates for educational funding may stress the need for a more predictable and sustainable approach to both property tax relief and school funding.

Texas Constitutional Statutes Affected

Government Code

• Chapter 403. Comptroller Of Public Accounts
  • Section: 109

Education Code

• Chapter 48. Foundation School Program
  • Section: New Section