H.B. No. 1553 aims to reduce school district maintenance and operations ad valorem taxes by utilizing surplus state revenue. The bill amends Section 48.255 of the Education Code, introducing new provisions that require the commissioner of education to lower the state compression percentage to the lowest possible level based on funds deposited into the property tax relief fund and any additional appropriated money. Furthermore, if the state compression percentage is determined to be zero, school districts will be prohibited from imposing a tier one maintenance and operations tax for that school year and subsequent years. Instead, they will receive funding as if they had a maximum compressed tax rate and no local share.

Additionally, the bill amends Section 403.109 of the Government Code to establish a process for allocating general revenue to the property tax relief fund. It mandates that 90% of any excess general revenue received in a fiscal biennium, beyond the appropriated amount, be deposited into this fund. The funds can only be appropriated to the Texas Education Agency for property tax relief, but if the available amount exceeds the estimated maintenance and operations taxes for that biennium, the legislature may use the surplus for other purposes. The provisions of this act will take effect starting September 1, 2027, and will be enacted 91 days after the legislative session concludes.

Statutes affected:
Introduced: Education Code 48.255, Government Code 403.109 (Education Code 48, Government Code 403)