89R15490 PRL-F
By: Hunter H.B. No. 4847
A BILL TO BE ENTITLED
AN ACT
relating to the dissemination of certain school district ad valorem
tax-related information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.16, Tax Code, is amended by adding
Subsection (d-3) to read as follows:
(d-3) In addition to posting the information described by
Subsection (a), the county assessor-collector shall post on the
Internet website of the county for each school district, all or part
of the territory of which is located in the county, that has a local
revenue level in excess of entitlement as specified by Section
48.257, Education Code, and that, for the school year beginning in
the current tax year, has taken measures to reduce the district's
local revenue level, in accordance with Section 49.002, Education
Code:
(1) the percentage of the taxes for maintenance and
operations imposed by the district for the current tax year that the
district is required to pay under the agreement for the school year
beginning in the current tax year to purchase average daily
attendance credits;
(2) the percentage of the taxes for maintenance and
operations imposed by the district for the current tax year that the
district is not required to pay under the agreement for the school
year beginning in the current tax year to purchase average daily
attendance credits; and
(3) the following statement:
"How do your property taxes fund public education? The Texas
Legislature sets the level of funding per student that school
districts are entitled to retain for the maintenance and operations
of the district. This funding comes first from local property taxes
and then from the state's general revenue. After (name of school
district) collects the funds attributable to the district's local
tax collections for maintenance and operations, the state makes up
the difference to meet the funding level set by the Texas
Legislature. Since the local tax collections in (name of school
district) exceed its state entitlement, (name of school district)
is required to reduce its local revenue level, which it has chosen
to do by paying a portion of its local tax collections as recapture
to the state. The recaptured funds contribute to the state's
overall education funding pool and are used to help balance the
funding each school district receives. By recapturing funds from
school districts, the state reduces the amount of money it needs to
allocate directly to districts not required to reduce their local
revenue level, freeing up additional resources to fund other state
priorities. This can create budgetary savings for the state.
"Where do your property taxes go? (name of school district)
is required to pay (percentage described by Subdivision (1) for
applicable school district) of local tax collections to the state.
Recaptured local taxes sent to the state reduce the demand for other
state revenue that would be required for the state to contribute to
public education through the Foundation School Program."
SECTION 2. Section 31.01, Tax Code, is amended by adding
Subsection (d-2) to read as follows:
(d-2) This subsection applies only to a school district that
has a local revenue level in excess of entitlement as specified by
Section 48.257, Education Code, and that, for the school year
beginning in the current tax year, has taken measures to reduce the
district's local revenue level, in accordance with Section 49.002,
Education Code. In addition to any other information required by
this section, the tax bill or the separate statement shall
separately state:
(1) the percentage of the taxes for maintenance and
operations imposed by the school district for the current tax year
that the district is required to pay under the agreement for the
school year beginning in the current tax year to purchase average
daily attendance credits;
(2) the percentage of the taxes for maintenance and
operations imposed by the school district for the current tax year
that the district is not required to pay under the agreement for the
school year beginning in the current tax year to purchase average
daily attendance credits; and
(3) the following statement:
"How do your property taxes fund public education? The Texas
Legislature sets the level of funding per student that school
districts are entitled to retain for the maintenance and operations
of the district. This funding comes first from local property taxes
and then from the state's general revenue. After (name of school
district) collects the funds attributable to the district's local
tax collections for maintenance and operations, the state makes up
the difference to meet the funding level set by the Texas
Legislature. Since the local tax collections in (name of school
district) exceed its state entitlement, (name of school district)
is required to reduce its local revenue level, which it has chosen
to do by paying a portion of its local tax collections as recapture
to the state. The recaptured funds contribute to the state's
overall education funding pool and are used to help balance the
funding each school district receives. By recapturing funds from
school districts, the state reduces the amount of money it needs to
allocate directly to districts not required to reduce their local
revenue level, freeing up additional resources to fund other state
priorities. This can create budgetary savings for the state.
"Where do your property taxes go? (name of school district)
is required to pay (percentage described by Section 26.16(d-3)(1)
for applicable school district) of local tax collections to the
state. Recaptured local taxes sent to the state reduce the demand
for other state revenue that would be required for the state to
contribute to public education through the Foundation School
Program."
SECTION 3. This Act takes effect January 1, 2026.