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TX HB5579
Bill
Status
3/14/2025
Primary Sponsor
Ellen Troxclair
Click for details
AI Summary
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Reduces the state compression percentage formula multiplier from 1.025 (2.5%) to 1.01 (1%), which limits annual increases in the compression calculation used for school district tax rates
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Lowers the threshold for triggering the maximum compressed rate (MCR) formula from 2.5% property value growth to 1% growth, meaning more districts will have their rates recalculated when property values increase
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Modifies the MCR calculation formula to use the 1.01 multiplier instead of 1.025, resulting in slower growth in the maximum tax rate school districts can levy
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Caps the state compression percentage at 93% or a lower percentage set by appropriation, whichever is lower
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Takes effect September 1, 2025
Legislative Description
Relating to the state compression percentage and a school district's maximum compressed tax rate under the public school finance system.
Taxation
Last Action
Referred to Ways & Means
4/7/2025