Texas HB275 reduces school district maintenance and operations ad valorem taxes using surplus state revenue.

Texas HB275 aims to reduce school district maintenance and operations ad valorem taxes by utilizing surplus state revenue. The bill modifies the state compression percentage calculation and allows for the appropriation of surplus funds for property tax relief. It also mandates that if the state compression percentage is zero, school districts cannot impose a tier one maintenance and operations tax and are entitled to funding as if they had not imposed such a tax. The changes take effect starting with the state fiscal biennium beginning September 1, 2027.

Texas HB275 reduces school district maintenance and operations ad valorem taxes using surplus state revenue.

Texas HB275 aims to reduce school district maintenance and operations ad valorem taxes by utilizing surplus state revenue. The bill modifies the state compression percentage calculation and allows for the appropriation of surplus funds for property tax relief. It also mandates that if the state compression percentage is zero, school districts cannot impose a tier one maintenance and operations tax and are entitled to funding as if they had not imposed such a tax. The changes take effect starting with the state fiscal biennium beginning September 1, 2027.