TX HB275

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 for school district maintenance and operations taxes to the lowest possible level using funds deposited in the property tax relief fund

Restricts appropriation of surplus revenue deposited under this bill to the Texas Education Agency solely for property tax relief through compression percentage reduction, unless funds exceed estimated school district 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 assuming full funding responsibility

Takes effect September 1, 2025, with the surplus revenue allocation provisions applying beginning with the state fiscal biennium starting September 1, 2027