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.