H.B. No. 91 aims to reduce school district maintenance and operations ad valorem taxes by utilizing certain surplus state revenue. The bill amends Section 48.255 of the Education Code, specifically modifying Subsection (b) and adding new Subsections (d) and (e). The amendments establish that the state compression percentage will be determined by the lowest percentage possible, influenced by 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 not be allowed to impose a tier one maintenance and operations tax for that school year or any subsequent years, while still receiving funding as if they had a maximum compressed tax rate.

Additionally, the bill amends Section 403.109 of the Government Code by adding Subsections (e) and (f). These new provisions require the comptroller to allocate a portion of general revenue to the property tax relief fund based on the excess of general revenue over appropriations. It also stipulates that funds deposited under this section can only be appropriated to the Texas Education Agency for property tax relief, with any surplus available for other legislative purposes. The provisions of this Act will take effect starting with the state fiscal biennium beginning September 1, 2027.

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