HB 2108

AN ACT relating to the components of a school district's enrichment tax

House Bill • Metcalf | Leo Wilson

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89th Regular Session

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

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What This Bill Does

Modifies the enrichment tax rate for school districts by allowing districts to levy up to nine cents (increased from eight cents) in additional maintenance and operations tax effort. The change impacts how school districts calculate their guaranteed yield per weighted student, potentially providing more local funding flexibility and additional resources for educational expenses. The new tax rate structure will take effect on September 1, 2025, giving school districts time to adjust their financial planning and tax strategies.

Subject Areas

Education--Primary & Secondary--Finance Taxation--School District

Bill Text

relating to the components of a school district's enrichment tax
rate and the calculation of the guaranteed yield under the
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 45.0032(b), Education Code, is amended
(b)  A district's enrichment tax rate consists of:
(1)  any cents of additional maintenance and operations
tax effort, not to exceed nine [eight] cents over the maximum tax
rate described by Subsection (a); and
(2)  any cents of additional maintenance and operations
tax effort that exceeds the sum of the maximum tax rate described by
Subsection (a) and the maximum number of cents permitted under
SECTION 2.  Section 48.202(a-1), Education Code, is amended
(a-1)  For purposes of Subsection (a), the dollar amount
guaranteed level of state and local funds per weighted student per
cent of tax effort ("GL") for a school district is:
(1)  the greater of the amount of district tax revenue
per weighted student per cent of tax effort available to a school
district at the 96th percentile of wealth per weighted student or
the amount that results from multiplying 6,160, or the greater
amount provided under Section 48.051(b), if applicable, by 0.016,
for the first nine [eight] cents by which the district's
maintenance and operations tax rate exceeds the district's tier one
(2)  subject to Subsection (f), the amount that results
from multiplying $6,160, or the greater amount provided under
Section 48.051(b), if applicable, by 0.008, for the district's
maintenance and operations tax effort that exceeds the amount of
tax effort described by Subdivision (1).
SECTION 3.  This Act takes effect September 1, 2025.