HB4847 - Relating to the dissemination of certain school district ad valorem tax-related information.

  89R25316 PRL-F     By: Hunter, Isaac, Leo Wilson, Plesa, H.B. No. 4847       Garcia Hernandez       A BILL TO BE ENTITLED   AN ACT   relating to the dissemination of certain school district ad valorem   tax-related information.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 26.17, Tax Code, is amended by adding   Subsection (b-1) to read as follows:           (b-1)     This subsection applies only to property that is   located in one or more school districts that have a local revenue   level in excess of entitlement as specified by Section 48.257,   Education Code, and that, for the school year beginning in the   current tax year, have taken measures to reduce the district's   local revenue level in accordance with Section 49.002, Education   Code.   In addition to the information required by Subsection (b) of   this section, the database must include, with respect to each   property to which this subsection applies that is listed on the   appraisal roll for the appraisal district, the following   information, if applicable, for each school district in which the   property is located:                 (1)     the percentage of the taxes for maintenance and   operations imposed by the district for the current tax year that the   district is required to pay under the agreement for the school year   beginning in the current tax year to purchase average daily   attendance credits;                 (2)     the percentage of the taxes for maintenance and   operations imposed by the district for the current tax year that the   district is not required to pay under the agreement for the school   year beginning in the current tax year to purchase average daily   attendance credits; and                 (3)  the following statement:           "How do your property taxes fund public education?   The Texas   Legislature sets the level of funding per student that school   districts are entitled to retain for the maintenance and operations   of the district.   This funding comes first from local property taxes   and then from the state's general revenue.   After (name of school   district) collects the funds attributable to the district's local   tax collections for maintenance and operations, the state makes up   the difference to meet the funding level set by the Texas   Legislature.   Since the local tax collections in (name of school   district) exceed its state entitlement, (name of school district)   is required to reduce its local revenue level, which it has chosen   to do by paying a portion of its local tax collections as recapture   to the state.   The recaptured funds contribute to the state's   overall education funding pool and are used to help balance the   funding each school district receives.   By recapturing funds from   school districts, the state reduces the amount of money it needs to   allocate directly to districts not required to reduce their local   revenue level, freeing up additional resources to fund other state   priorities. This can create budgetary savings for the state.           "Where do your property taxes go?   (name of school district)   is required to pay (percentage described by Subdivision (1) for   applicable school district) of local tax collections to the state.     Recaptured local taxes sent to the state reduce the demand for other   state revenue that would be required for the state to contribute to   public education through the Foundation School Program."          SECTION 2.  This Act takes effect January 1, 2026.