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Bill

HB 91

Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

89th Legislature, 2nd Called Session (2025) Introduced by Andy Hopper and 3 co-sponsors

Texas bill directs state budget surpluses to reduce local school property taxes, shifting education funding from property owners to state revenue.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #educationagency #texas(v9941) #education #commissionerof(v9954) #education--primary&secondary--finance(i0250) #foundationschoolprogram(s0541) #statefinances--management&control(i0748) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--schooldistrict(i0785)
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Bill Summary · HB 91

Legislative bill overview

HB 91 proposes to reduce school district maintenance and operations (M&O) ad valorem taxes by directing surplus state revenue toward offsetting these local property taxes. The bill would use state budget surpluses to lower the tax burden on property owners who fund schools through local taxation, rather than keeping surplus funds in the state treasury or allocating them elsewhere.

Why is this important

School M&O taxes represent a significant portion of local property tax bills in Texas, directly affecting homeowners, businesses, and renters (through higher rent). This mechanism would shift some education funding responsibility from local property taxation to state general revenue, potentially affecting both tax burden distribution and school funding stability across districts with varying property wealth.

Potential points of contention

  • School funding equity: Depending on implementation, this could disproportionately benefit wealthy districts with higher property values while potentially reducing state resources available for equalization funding that helps low-wealth districts
  • Revenue volatility: Tying school tax relief to "surplus" revenue creates uncertainty—schools may face budget instability if surpluses don't materialize, and property tax relief becomes unpredictable
  • Long-term sustainability: Using one-time surpluses for recurring tax reduction raises questions about funding sustainability when surpluses decline, potentially requiring future tax increases or spending cuts

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

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