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A BILL TO BE ENTITLED
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AN ACT
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relating to the dissemination of certain school district ad valorem |
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tax-related information. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 26.17, Tax Code, is amended by adding |
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Subsection (b-1) to read as follows: |
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(b-1) This subsection applies only to property that is |
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located in one or more school districts that have a local revenue |
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level in excess of entitlement as specified by Section 48.257, |
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Education Code, and that, for the school year beginning in the |
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current tax year, have taken measures to reduce the district's |
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local revenue level in accordance with Section 49.002, Education |
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Code. In addition to the information required by Subsection (b) of |
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this section, the database must include, with respect to each |
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property to which this subsection applies that is listed on the |
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appraisal roll for the appraisal district, the following |
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information, if applicable, for each school district in which the |
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property is located: |
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(1) the percentage of the taxes for maintenance and |
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operations imposed by the district for the current tax year that the |
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district is required to pay under the agreement for the school year |
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beginning in the current tax year to purchase average daily |
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attendance credits; |
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(2) the percentage of the taxes for maintenance and |
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operations imposed by the district for the current tax year that the |
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district is not required to pay under the agreement for the school |
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year beginning in the current tax year to purchase average daily |
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attendance credits; and |
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(3) the following statement: |
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"How do your property taxes fund public education? The Texas |
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Legislature sets the level of funding per student that school |
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districts are entitled to retain for the maintenance and operations |
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of the district. This funding comes first from local property taxes |
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and then from the state's general revenue. After (name of school |
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district) collects the funds attributable to the district's local |
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tax collections for maintenance and operations, the state makes up |
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the difference to meet the funding level set by the Texas |
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Legislature. Since the local tax collections in (name of school |
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district) exceed its state entitlement, (name of school district) |
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is required to reduce its local revenue level, which it has chosen |
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to do by paying a portion of its local tax collections as recapture |
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to the state. The recaptured funds contribute to the state's |
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overall education funding pool and are used to help balance the |
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funding each school district receives. By recapturing funds from |
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school districts, the state reduces the amount of money it needs to |
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allocate directly to districts not required to reduce their local |
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revenue level, freeing up additional resources to fund other state |
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priorities. This can create budgetary savings for the state. |
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"Where do your property taxes go? (name of school district) |
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is required to pay (percentage described by Subdivision (1) for |
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applicable school district) of local tax collections to the state. |
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Recaptured local taxes sent to the state reduce the demand for other |
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state revenue that would be required for the state to contribute to |
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public education through the Foundation School Program." |
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SECTION 2. This Act takes effect January 1, 2026. |