89R15872 KJE-D
By: Noble H.J.R. No. 183
A JOINT RESOLUTION
proposing a constitutional amendment establishing the property tax
reduction fund to reduce school district maintenance and operations
ad valorem taxes and dedicating certain unencumbered general
revenue and certain general revenue that would otherwise be
transferred to the economic stabilization fund to that fund.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 49-g, Article III, Texas Constitution,
is amended by amending Subsections (c), (c-1), (c-2), and (h) and
adding Subsection (g-1) to read as follows:
(c) Not later than the 90th day of each fiscal year, the
comptroller of public accounts shall transfer from the general
revenue fund to the economic stabilization fund, the property tax
reduction fund, and the state highway fund the sum of the amounts
described by Subsections (d) and (e) of this section, to be
allocated as provided by Subsections (c-1) and (c-2) of this
section. However, if necessary and notwithstanding the allocations
prescribed by Subsections (c-1) and (c-2) of this section, the
comptroller shall reduce proportionately the amounts described by
Subsections (d) and (e) of this section to be transferred and
allocated to the economic stabilization fund to prevent the amount
in that fund from exceeding the limit in effect for that biennium
under Subsection (g) of this section. Revenue transferred to the
state highway fund under this subsection may be used only for
constructing, maintaining, and acquiring rights-of-way for public
roadways other than toll roads.
(c-1) Of the sum of the amounts described by Subsections (d)
and (e) of this section and required to be transferred from the
general revenue fund under Subsection (c) of this section, the
comptroller shall allocate one-quarter [one-half] to the economic
stabilization fund, one-quarter to the property tax reduction fund,
and the remainder to the state highway fund, except as provided by
Subsection (c-2) of this section.
(c-2) The legislature by general law shall provide for a
procedure by which the allocation of the sum of the amounts
described by Subsections (d) and (e) of this section may be adjusted
to provide for a transfer to the economic stabilization fund of an
amount greater than the allocation provided for under Subsection
(c-1) of this section with the remainder of that sum, if any,
allocated for transfer to the property tax reduction fund and the
state highway fund as provided by general law. The allocation made
as provided by that general law is binding on the comptroller for
the purposes of the transfers required by Subsection (c) of this
section.
(g-1) When the comptroller of public accounts acts to
prevent the amount in the economic stabilization fund from
exceeding the limit in effect for a biennium under Subsection (g) of
this section by reducing an amount transferred to the fund from
general revenue as provided by Subsection (b) or (c) of this section
or by crediting to general revenue interest that is due to the fund
as provided by Subsection (i) of this section, the comptroller
shall:
(1) determine an amount of general revenue equal to
the amount by which the balance of general revenue is increased by
the reduction of the transfer from general revenue or the crediting
of interest to general revenue; and
(2) transfer the amount determined under Subdivision
(1) of this subsection to the property tax reduction fund
established under Section 3-a, Article VII, of this constitution.
(h) In preparing an estimate of anticipated revenues for a
succeeding biennium as required by Section 49a, Article III,
[Section 49a,] of this constitution, the comptroller shall estimate
the amount of the transfers that will be made under Subsections (b),
(d), [and] (e), and (g-1) of this section. The comptroller shall
deduct that amount from the estimate of anticipated revenues as if
the transfers were made on August 31 of that fiscal year.
SECTION 2. Article VII, Texas Constitution, is amended by
adding Section 3-a to read as follows:
Sec. 3-a. (a) The property tax reduction fund is
established as a fund in the state treasury outside the general
revenue fund for the purpose of reducing school district
maintenance and operations ad valorem taxes.
(b) The fund consists of:
(1) money appropriated or transferred to the credit of
the fund; and
(2) interest and other earnings on the investment of
money in the fund.
(c) Not later than the 90th day of each state fiscal
biennium, the comptroller of public accounts shall transfer to the
credit of the fund one-half of any unencumbered positive balance of
general revenue that exists on the last day of the preceding
biennium.
(d) Money in the fund may be appropriated only for the
purpose of reducing school district maintenance and operations ad
valorem taxes in the manner provided by general law or maintaining
the reduction of those taxes once the amount of those taxes reaches
zero.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, establishing the property tax reduction fund
to reduce school district maintenance and operations ad valorem
taxes and dedicating certain unencumbered general revenue and
certain general revenue that would otherwise be transferred to the
economic stabilization fund to that fund.
(b) The amendments to Section 49-g, Article III, of this
constitution, and Section 3-a, Article VII, of this constitution,
as added by the amendment, take effect September 1, 2027.
(c) This temporary provision expires September 1, 2028.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 4, 2025.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment establishing the
property tax reduction fund to reduce school district maintenance
and operations ad valorem taxes and dedicating certain unencumbered
general revenue and certain general revenue that would otherwise be
transferred to the economic stabilization fund to that fund."