BILL ANALYSIS H.B. 8 By: Meyer Ways & Means Committee Report (Unamended) BACKGROUND AND PURPOSE According to the 2022-2023 Biennial Property Tax Report published by the comptroller of public accounts, local property taxes in Texas are rising. One mechanism that provides property tax relief is the reduction of the maximum compressed tax rate for school districts. The author has informed the committee that reducing the maximum compressed tax rate provides roughly equal tax relief to each school district in Texas, with the state providing funds to reduce that rate directly to school districts to pay for property tax revenue that otherwise would be paid by property owners in the district. H.B. 8 seeks to provide property tax relief by reducing the maximum compressed tax rate for all school districts. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 8 amends the Education Code to provide for a $0.0331 reduction in a public school district's maximum compressed tax rate for the 2025-2026 school year from the rate otherwise calculated for the district under applicable state law for that year. If a district's maximum compressed tax rate after that reduction would be less than 90 percent of another district's maximum compressed tax rate after that reduction, the district's maximum compressed tax rate is instead the value at which that rate would be equal to 90 percent of the other district's maximum compressed tax rate. The bill provides that, during the 2025-2026 school year, certain references in state law to a district's maximum compressed tax rate or maximum compressed rate mean the maximum compressed rate for the district as reduced by the bill for the 2025-2026 school year. The bill establishes that, for purposes of determining a district's maximum compressed tax rate for the 2026-2027 school year, the value of the district's "PYMCR" is the maximum compressed tax rate determined for the district for the preceding school year. The bill's provisions expire September 1, 2027. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 8
By: Meyer
Ways & Means
Committee Report (Unamended)
H.B. 8
By: Meyer
Ways & Means
Committee Report (Unamended)
BACKGROUND AND PURPOSE According to the 2022-2023 Biennial Property Tax Report published by the comptroller of public accounts, local property taxes in Texas are rising. One mechanism that provides property tax relief is the reduction of the maximum compressed tax rate for school districts. The author has informed the committee that reducing the maximum compressed tax rate provides roughly equal tax relief to each school district in Texas, with the state providing funds to reduce that rate directly to school districts to pay for property tax revenue that otherwise would be paid by property owners in the district. H.B. 8 seeks to provide property tax relief by reducing the maximum compressed tax rate for all school districts.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 8 amends the Education Code to provide for a $0.0331 reduction in a public school district's maximum compressed tax rate for the 2025-2026 school year from the rate otherwise calculated for the district under applicable state law for that year. If a district's maximum compressed tax rate after that reduction would be less than 90 percent of another district's maximum compressed tax rate after that reduction, the district's maximum compressed tax rate is instead the value at which that rate would be equal to 90 percent of the other district's maximum compressed tax rate. The bill provides that, during the 2025-2026 school year, certain references in state law to a district's maximum compressed tax rate or maximum compressed rate mean the maximum compressed rate for the district as reduced by the bill for the 2025-2026 school year. The bill establishes that, for purposes of determining a district's maximum compressed tax rate for the 2026-2027 school year, the value of the district's "PYMCR" is the maximum compressed tax rate determined for the district for the preceding school year. The bill's provisions expire September 1, 2027.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
According to the 2022-2023 Biennial Property Tax Report published by the comptroller of public accounts, local property taxes in Texas are rising. One mechanism that provides property tax relief is the reduction of the maximum compressed tax rate for school districts. The author has informed the committee that reducing the maximum compressed tax rate provides roughly equal tax relief to each school district in Texas, with the state providing funds to reduce that rate directly to school districts to pay for property tax revenue that otherwise would be paid by property owners in the district. H.B. 8 seeks to provide property tax relief by reducing the maximum compressed tax rate for all school districts.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 8 amends the Education Code to provide for a $0.0331 reduction in a public school district's maximum compressed tax rate for the 2025-2026 school year from the rate otherwise calculated for the district under applicable state law for that year. If a district's maximum compressed tax rate after that reduction would be less than 90 percent of another district's maximum compressed tax rate after that reduction, the district's maximum compressed tax rate is instead the value at which that rate would be equal to 90 percent of the other district's maximum compressed tax rate. The bill provides that, during the 2025-2026 school year, certain references in state law to a district's maximum compressed tax rate or maximum compressed rate mean the maximum compressed rate for the district as reduced by the bill for the 2025-2026 school year. The bill establishes that, for purposes of determining a district's maximum compressed tax rate for the 2026-2027 school year, the value of the district's "PYMCR" is the maximum compressed tax rate determined for the district for the preceding school year. The bill's provisions expire September 1, 2027.
EFFECTIVE DATE
September 1, 2025.