H.B. No. 142 proposes an amendment to the Education Code that introduces a new section, 48.2554, which establishes a maximum compressed tax rate for school districts for the 2026-2027 school year. The bill mandates that the commissioner calculate each district's maximum compressed tax rate by reducing the rate determined under existing sections 48.2551 or 48.2552(b) by an amount appropriated for this purpose. Additionally, if a district's calculated rate falls below 90% of another district's rate, it will be adjusted to match that threshold. The bill also clarifies that references to maximum compressed tax rates in various legal provisions will now refer to the rates determined under this new section.

Furthermore, the bill appropriates federal funds received under the One Big Beautiful Bill Act to the Texas Education Agency for the fiscal year starting September 1, 2026, specifically for the purpose of reducing school district maximum compressed tax rates as outlined in the new section. The provisions of this section will expire on September 1, 2028. The act is set to take effect 91 days after the conclusion of the legislative session.

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