HJR183 - Proposing a constitutional amendment establishing the property tax reduction fund to reduce school district maintenance and operations ad valorem taxes and dedicating certain unencumbered general revenue and certain general revenue that would otherwise be transferred to the economic stabilization fund to that fund.

  89R15872 KJE-D     By: Noble H.J.R. No. 183       A JOINT RESOLUTION   proposing a constitutional amendment establishing the property tax   reduction fund to reduce school district maintenance and operations   ad valorem taxes and dedicating certain unencumbered general   revenue and certain general revenue that would otherwise be   transferred to the economic stabilization fund to that fund.          BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 49-g, Article III, Texas Constitution,   is amended by amending Subsections (c), (c-1), (c-2), and (h) and   adding Subsection (g-1) to read as follows:          (c)  Not later than the 90th day of each fiscal year, the   comptroller of public accounts shall transfer from the general   revenue fund to the economic stabilization fund , the property tax   reduction fund, and the state highway fund the sum of the amounts   described by Subsections (d) and (e) of this section, to be   allocated as provided by Subsections (c-1) and (c-2) of this   section.  However, if necessary and notwithstanding the allocations   prescribed by Subsections (c-1) and (c-2) of this section, the   comptroller shall reduce proportionately the amounts described by   Subsections (d) and (e) of this section to be transferred and   allocated to the economic stabilization fund to prevent the amount   in that fund from exceeding the limit in effect for that biennium   under Subsection (g) of this section.  Revenue transferred to the   state highway fund under this subsection may be used only for   constructing, maintaining, and acquiring rights-of-way for public   roadways other than toll roads.          (c-1)  Of the sum of the amounts described by Subsections (d)   and (e) of this section and required to be transferred from the   general revenue fund under Subsection (c) of this section, the   comptroller shall allocate one-quarter [ one-half ] to the economic   stabilization fund , one-quarter to the property tax reduction fund,   and the remainder to the state highway fund, except as provided by   Subsection (c-2) of this section.          (c-2)  The legislature by general law shall provide for a   procedure by which the allocation of the sum of the amounts   described by Subsections (d) and (e) of this section may be adjusted   to provide for a transfer to the economic stabilization fund of an   amount greater than the allocation provided for under Subsection   (c-1) of this section with the remainder of that sum, if any,   allocated for transfer to the property tax reduction fund and the   state highway fund as provided by general law .  The allocation made   as provided by that general law is binding on the comptroller for   the purposes of the transfers required by Subsection (c) of this   section.           (g-1)     When the comptroller of public accounts acts to   prevent the amount in the economic stabilization fund from   exceeding the limit in effect for a biennium under Subsection (g) of   this section by reducing an amount transferred to the fund from   general revenue as provided by Subsection (b) or (c) of this section   or by crediting to general revenue interest that is due to the fund   as provided by Subsection (i) of this section, the comptroller   shall:                 (1)     determine an amount of general revenue equal to   the amount by which the balance of general revenue is increased by   the reduction of the transfer from general revenue or the crediting   of interest to general revenue; and                 (2)     transfer the amount determined under Subdivision   (1) of this subsection to the property tax reduction fund   established under Section 3-a, Article VII, of this constitution.          (h)  In preparing an estimate of anticipated revenues for a   succeeding biennium as required by Section 49a, Article III,   [ Section 49a, ] of this constitution, the comptroller shall estimate   the amount of the transfers that will be made under Subsections (b),   (d), [ and ] (e) , and (g-1) of this section.  The comptroller shall   deduct that amount from the estimate of anticipated revenues as if   the transfers were made on August 31 of that fiscal year.          SECTION 2.  Article VII, Texas Constitution, is amended by   adding Section 3-a to read as follows:           Sec.   3-a.     (a) The property tax reduction fund is   established as a fund in the state treasury outside the general   revenue fund for the purpose of reducing school district   maintenance and operations ad valorem taxes.           (b)  The fund consists of:                 (1)     money appropriated or transferred to the credit of   the fund; and                 (2)     interest and other earnings on the investment of   money in the fund.           (c)     Not later than the 90th day of each state fiscal   biennium, the comptroller of public accounts shall transfer to the   credit of the fund one-half of any unencumbered positive balance of   general revenue that exists on the last day of the preceding   biennium.           (d)     Money in the fund may be appropriated only for the   purpose of reducing school district maintenance and operations ad   valorem taxes in the manner provided by general law or maintaining   the reduction of those taxes once the amount of those taxes reaches   zero.          SECTION 3.  The following temporary provision is added to   the Texas Constitution:           TEMPORARY PROVISION.     (a)     This temporary provision applies   to the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, establishing the property tax reduction fund   to reduce school district maintenance and operations ad valorem   taxes and dedicating certain unencumbered general revenue and   certain general revenue that would otherwise be transferred to the   economic stabilization fund to that fund.           (b)     The amendments to Section 49-g, Article III, of this   constitution, and Section 3-a, Article VII, of this constitution,   as added by the amendment, take effect September 1, 2027.           (c)  This temporary provision expires September 1, 2028.          SECTION 4.  This proposed constitutional amendment shall be   submitted to the voters at an election to be held November 4, 2025.   The ballot shall be printed to permit voting for or against the   proposition: "The constitutional amendment establishing the   property tax reduction fund to reduce school district maintenance   and operations ad valorem taxes and dedicating certain unencumbered   general revenue and certain general revenue that would otherwise be   transferred to the economic stabilization fund to that fund."