Relating to a reduction in the maximum compressed tax rate of a school district.
relating to a reduction in the maximum compressed tax rate of a
school district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 48, Education Code, is
amended by adding Section 48.2554 to read as follows:
Sec. 48.2554. MAXIMUM COMPRESSED TAX RATE FOR 2025-2026
SCHOOL YEAR. (a) Notwithstanding any other provision of this title
or Chapter 26, Tax Code, for the 2025-2026 school year, the
commissioner shall calculate the value of a school district’s
maximum compressed tax rate by determining the district’s maximum
compressed rate under Section 48.2551 or 48.2552(b), if applicable,
and reducing the tax rate determined under the applicable section
by $0.0331.
(b) If a school district’s maximum compressed tax rate as
calculated under Subsection (a) would be less than 90 percent of
another school district’s maximum compressed tax rate under
Subsection (a), the district’s maximum compressed tax rate is the
value at which the district’s maximum compressed tax rate would be
equal to 90 percent of the other district’s maximum compressed tax
rate.
(c) Notwithstanding any other provision of this title or
Chapter 26, Tax Code, for purposes of determining funding for
school districts for the 2025-2026 school year, a reference in any
of the following provisions of law to a school district’s maximum
compressed tax rate or maximum compressed rate as determined under
Section 48.2551 means the maximum compressed tax rate determined
for the district under this section:
(1) Section 13.054(f);
(2) Section 45.003(d);
(3) Section 45.0032(a);
(4) Section 48.051(a);
(5) Sections 48.2553(a) and (e);
(6) Section 48.2556; and
(7) Section 26.08(n), Tax Code.
(d) For purposes of Section 30.003(f-1), a reference in that
section to Section 48.2551 includes this section.
(e) Notwithstanding any other provision of this title, for
purposes of determining a school district’s maximum compressed tax
rate under Section 48.2551 for the 2026-2027 school year, the value
of the district’s “PYMCR” is the maximum compressed tax rate
determined for the district under this section for the preceding
school year.
(f) This section expires September 1, 2027.
SECTION 2. This Act takes effect September 1, 2025.
