HB 2051

AN ACT relating to a limitation on the amount of school property tax

House Bill • Meyer | Plesa

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

Filed

Bill introduced by legislator

In Committee

Hearing Scheduled

Passed Committee

Floor Calendar

Passed Chamber

Sent to Other Chamber

Passed Both Chambers

Sent to Governor

Signed into Law

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Fiscal Note

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What This Bill Does

Limits the amount of school property tax revenue that can be recaptured from school districts by allowing districts to retain maintenance and operations tax revenue sufficient to cover their average per-student costs. The legislation ensures that school districts can keep enough tax revenue to fund basic educational expenses, preventing significant reductions in their operational budgets. The Texas Education Commissioner will calculate these costs based on the district's average maintenance and operations expenditures over the past three years, with adjustments for inflation, and the commissioner's determination will be final and not subject to appeal.

Subject Areas

Education--School Districts Education--Primary & Secondary--Finance EDUCATION, COMMISSIONER OF Taxation--School District

Bill Text

relating to a limitation on the amount of school property tax
revenue that is subject to recapture under the public school
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter D, Chapter 49, Education Code, is
amended by adding Section 49.1531 to read as follows:
Sec. 49.1531.  LIMITATION ON TOTAL COST.  (a)
Notwithstanding any other provision of this chapter, a school
district that executes an agreement to purchase attendance credit
in an amount sufficient to reduce the district's local revenue
level to a level that is equal to or less than the level established
(1)  is entitled to retain maintenance and operations
tax revenue sufficient to pay the district's average maintenance
and operations costs per student in average daily attendance, as
determined under Subsection (b) and adjusted for inflation; and
(2)  may not be required to pay a total amount for
attendance credit that would reduce the district's retained
maintenance and operations tax revenue below the amount described
(b)  For purposes of Subsection (a)(1), the commissioner
shall determine a school district's average maintenance and
operations costs per student in average daily attendance based on
the district's maintenance and operations expenditures per student
in average daily attendance for the preceding three school years.
The commissioner shall adjust a district's average costs to reflect
inflation in a manner determined appropriate by the commissioner.
(c)  A determination by the commissioner under this section
is final and may not be appealed.
(d)  The commissioner shall adopt rules necessary to
SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.