HB 5579

relating to the state compression percentage and a school
district's maximum compressed tax rate under the public school
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 48.255(b), Education Code, is amended to
(b)  The state compression percentage is the lower of:
(1)  93 percent, or a lower percentage set by
appropriation for a school year;
(2)  the percentage determined by the following
SCP = PYCP X 1.01 [1.025]/(1 + ECPV); or
(3)  the percentage determined under this section for
SECTION 2.  Section 48.2551(b), Education Code, is amended
(b)  Except as provided by Subsection (c), a district's
maximum compressed rate ("MCR") is the lesser of:
(1)  the rate determined by the following applicable
(A)  if "DPV" exceeds "PYDPV" by an amount equal
to or greater than one [2.5] percent:
MCR = (1.01 [1.025]((PYDPV+E) X PYMCR))/DPV; or
(B)  if Paragraph (A) does not apply:
(2)  the product of the state compression percentage,
as determined under Section 48.255, for the current tax year,
SECTION 3.  This Act takes effect September 1, 2025.