TX HB1553

Requires the comptroller to deposit 90% of surplus state general revenue (amount exceeding the constitutional spending limit) into the property tax relief fund each biennium, with final deposits due within 90 days of the next biennium

Directs the commissioner of education to reduce the state compression percentage to the lowest possible level using money from the property tax relief fund and any additional appropriations, lowering school district maintenance and operations tax rates

Restricts money deposited from surplus revenue to be appropriated only to the Texas Education Agency for property tax relief through compression percentage reduction, unless surplus exceeds estimated school M&O taxes owed

Prohibits school districts from imposing tier one maintenance and operations taxes permanently once the state compression percentage reaches zero, with the state fully funding districts as if they had levied the maximum compressed rate

Takes effect on the 91st day after the legislative session ends, applying beginning with the state fiscal biennium starting September 1, 2027