| 1 | 1 | | 89R15490 PRL-F |
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| 2 | 2 | | By: Hunter H.B. No. 4847 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the dissemination of certain school district ad valorem |
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| 10 | 10 | | tax-related information. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 26.16, Tax Code, is amended by adding |
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| 13 | 13 | | Subsection (d-3) to read as follows: |
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| 14 | 14 | | (d-3) In addition to posting the information described by |
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| 15 | 15 | | Subsection (a), the county assessor-collector shall post on the |
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| 16 | 16 | | Internet website of the county for each school district, all or part |
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| 17 | 17 | | of the territory of which is located in the county, that has a local |
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| 18 | 18 | | revenue level in excess of entitlement as specified by Section |
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| 19 | 19 | | 48.257, Education Code, and that, for the school year beginning in |
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| 20 | 20 | | the current tax year, has taken measures to reduce the district's |
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| 21 | 21 | | local revenue level, in accordance with Section 49.002, Education |
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| 22 | 22 | | Code: |
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| 23 | 23 | | (1) the percentage of the taxes for maintenance and |
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| 24 | 24 | | operations imposed by the district for the current tax year that the |
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| 25 | 25 | | district is required to pay under the agreement for the school year |
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| 26 | 26 | | beginning in the current tax year to purchase average daily |
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| 27 | 27 | | attendance credits; |
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| 28 | 28 | | (2) the percentage of the taxes for maintenance and |
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| 29 | 29 | | operations imposed by the district for the current tax year that the |
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| 30 | 30 | | district is not required to pay under the agreement for the school |
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| 31 | 31 | | year beginning in the current tax year to purchase average daily |
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| 32 | 32 | | attendance credits; and |
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| 33 | 33 | | (3) the following statement: |
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| 34 | 34 | | "How do your property taxes fund public education? The Texas |
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| 35 | 35 | | Legislature sets the level of funding per student that school |
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| 36 | 36 | | districts are entitled to retain for the maintenance and operations |
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| 37 | 37 | | of the district. This funding comes first from local property taxes |
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| 38 | 38 | | and then from the state's general revenue. After (name of school |
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| 39 | 39 | | district) collects the funds attributable to the district's local |
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| 40 | 40 | | tax collections for maintenance and operations, the state makes up |
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| 41 | 41 | | the difference to meet the funding level set by the Texas |
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| 42 | 42 | | Legislature. Since the local tax collections in (name of school |
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| 43 | 43 | | district) exceed its state entitlement, (name of school district) |
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| 44 | 44 | | is required to reduce its local revenue level, which it has chosen |
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| 45 | 45 | | to do by paying a portion of its local tax collections as recapture |
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| 46 | 46 | | to the state. The recaptured funds contribute to the state's |
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| 47 | 47 | | overall education funding pool and are used to help balance the |
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| 48 | 48 | | funding each school district receives. By recapturing funds from |
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| 49 | 49 | | school districts, the state reduces the amount of money it needs to |
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| 50 | 50 | | allocate directly to districts not required to reduce their local |
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| 51 | 51 | | revenue level, freeing up additional resources to fund other state |
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| 52 | 52 | | priorities. This can create budgetary savings for the state. |
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| 53 | 53 | | "Where do your property taxes go? (name of school district) |
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| 54 | 54 | | is required to pay (percentage described by Subdivision (1) for |
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| 55 | 55 | | applicable school district) of local tax collections to the state. |
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| 56 | 56 | | Recaptured local taxes sent to the state reduce the demand for other |
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| 57 | 57 | | state revenue that would be required for the state to contribute to |
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| 58 | 58 | | public education through the Foundation School Program." |
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| 59 | 59 | | SECTION 2. Section 31.01, Tax Code, is amended by adding |
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| 60 | 60 | | Subsection (d-2) to read as follows: |
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| 61 | 61 | | (d-2) This subsection applies only to a school district that |
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| 62 | 62 | | has a local revenue level in excess of entitlement as specified by |
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| 63 | 63 | | Section 48.257, Education Code, and that, for the school year |
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| 64 | 64 | | beginning in the current tax year, has taken measures to reduce the |
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| 65 | 65 | | district's local revenue level, in accordance with Section 49.002, |
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| 66 | 66 | | Education Code. In addition to any other information required by |
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| 67 | 67 | | this section, the tax bill or the separate statement shall |
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| 68 | 68 | | separately state: |
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| 69 | 69 | | (1) the percentage of the taxes for maintenance and |
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| 70 | 70 | | operations imposed by the school district for the current tax year |
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| 71 | 71 | | that the district is required to pay under the agreement for the |
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| 72 | 72 | | school year beginning in the current tax year to purchase average |
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| 73 | 73 | | daily attendance credits; |
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| 74 | 74 | | (2) the percentage of the taxes for maintenance and |
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| 75 | 75 | | operations imposed by the school district for the current tax year |
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| 76 | 76 | | that the district is not required to pay under the agreement for the |
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| 77 | 77 | | school year beginning in the current tax year to purchase average |
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| 78 | 78 | | daily attendance credits; and |
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| 79 | 79 | | (3) the following statement: |
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| 80 | 80 | | "How do your property taxes fund public education? The Texas |
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| 81 | 81 | | Legislature sets the level of funding per student that school |
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| 82 | 82 | | districts are entitled to retain for the maintenance and operations |
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| 83 | 83 | | of the district. This funding comes first from local property taxes |
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| 84 | 84 | | and then from the state's general revenue. After (name of school |
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| 85 | 85 | | district) collects the funds attributable to the district's local |
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| 86 | 86 | | tax collections for maintenance and operations, the state makes up |
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| 87 | 87 | | the difference to meet the funding level set by the Texas |
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| 88 | 88 | | Legislature. Since the local tax collections in (name of school |
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| 89 | 89 | | district) exceed its state entitlement, (name of school district) |
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| 90 | 90 | | is required to reduce its local revenue level, which it has chosen |
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| 91 | 91 | | to do by paying a portion of its local tax collections as recapture |
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| 92 | 92 | | to the state. The recaptured funds contribute to the state's |
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| 93 | 93 | | overall education funding pool and are used to help balance the |
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| 94 | 94 | | funding each school district receives. By recapturing funds from |
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| 95 | 95 | | school districts, the state reduces the amount of money it needs to |
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| 96 | 96 | | allocate directly to districts not required to reduce their local |
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| 97 | 97 | | revenue level, freeing up additional resources to fund other state |
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| 98 | 98 | | priorities. This can create budgetary savings for the state. |
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| 99 | 99 | | "Where do your property taxes go? (name of school district) |
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| 100 | 100 | | is required to pay (percentage described by Section 26.16(d-3)(1) |
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| 101 | 101 | | for applicable school district) of local tax collections to the |
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| 102 | 102 | | state. Recaptured local taxes sent to the state reduce the demand |
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| 103 | 103 | | for other state revenue that would be required for the state to |
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| 104 | 104 | | contribute to public education through the Foundation School |
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| 105 | 105 | | Program." |
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| 106 | 106 | | SECTION 3. This Act takes effect January 1, 2026. |
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