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Bill

Bill

HJR 183

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.

89th Legislature (2025) Introduced by Candy Noble

Texas constitutional amendment redirects state surplus revenue to reduce school property taxes instead of building economic reserves, trading immediate tax relief for reduced fiscal security.

Referred to Appropriations
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Bill Summary · HJR 183

Legislative bill overview

HJR 183 proposes a constitutional amendment to create a dedicated "property tax reduction fund" in Texas that would use unencumbered general revenue to reduce school district maintenance and operations ad valorem taxes. The amendment would redirect state funds that would otherwise go to the economic stabilization fund (the state's "rainy day fund") toward property tax relief instead.

Why is this important

This proposal directly affects Texas homeowners and businesses through reduced school property taxes, but simultaneously reduces the state's financial reserves during a period of economic uncertainty. The trade-off between immediate tax relief and long-term fiscal stability has significant implications for both taxpayers and the state's ability to respond to future budget crises or economic downturns.

Potential points of contention

  • Fiscal reserve reduction: Diverting funds from the economic stabilization fund weakens the state's emergency financial cushion, potentially limiting flexibility during recessions or crises
  • School funding sustainability: While reducing property taxes provides immediate relief, it may create structural funding challenges for school districts dependent on stable revenue streams
  • Constitutional lock-in: Amending the state constitution to mandate this funding mechanism makes it difficult to reverse or adjust the policy if circumstances change, reducing legislative flexibility

Compiled from official sources — confirm details with the bill’s official record.

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