Tex. Educ. Code Section 48.202
Tier Two Allotment


(a)

Each school district is guaranteed a specified amount per weighted student in state and local funds for each cent of tax effort over that required for the district’s local fund assignment up to the maximum level specified in this subchapter. The amount of state support, subject only to the maximum amount under Section 48.203 (Limitation on Enrichment Tax Rate), is determined by the formula:
where:
“GYA” is the guaranteed yield amount of state funds to be allocated to the district;
“GL” is the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort, which is an amount described by Subsection (a-1) or a greater amount for any year provided by appropriation;
“WADA” is the number of students in weighted average daily attendance, which is calculated by dividing the sum of the school district’s allotments under Subchapters B and C by the basic allotment for the applicable year;
“DTR” is the district enrichment tax rate of the school district, which is determined by subtracting the amounts specified by Subsection (b) from the total amount of maintenance and operations taxes collected by the school district for the applicable school year and dividing the difference by the quotient of the district’s taxable value of property as determined under Subchapter M (Purpose), Chapter 403 (Comptroller of Public Accounts), Government Code, or, if applicable, under Section 48.258 (Adjustment for Rapid Decline in Taxable Value of Property) or by the quotient of the value of “DPV” as determined under Section 48.256(d) if that subsection applies to the district, divided by 100; and
“LR” is the local revenue, which is determined by multiplying “DTR” by the quotient of the district’s taxable value of property as determined under Subchapter M (Purpose), Chapter 403 (Comptroller of Public Accounts), Government Code, or, if applicable, under Section 48.258 (Adjustment for Rapid Decline in Taxable Value of Property) or by the quotient of the value of “DPV” as determined under Section 48.256(d) if that subsection applies to the district, divided by 100.

(a-1)

For purposes of Subsection (a), the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort (“GL”) for a school district is:

(1)

the greater of the amount of district tax revenue per weighted student per cent of tax effort available to a school district at the 96th percentile of wealth per weighted student or the amount that results from multiplying 6,160, or the greater amount provided under Section 48.051 (Basic Allotment)(b), if applicable, by 0.016, for the first eight cents by which the district’s maintenance and operations tax rate exceeds the district’s tier one tax rate; and

(2)

subject to Subsection (f), the amount that results from multiplying $6,160, or the greater amount provided under Section 48.051 (Basic Allotment)(b), if applicable, by 0.008, for the district’s maintenance and operations tax effort that exceeds the amount of tax effort described by Subdivision (1).

(a-2)

The limitation on district enrichment tax rate (“DTR”) under Section 48.203 (Limitation on Enrichment Tax Rate) does not apply to the district’s maintenance and operations tax effort described by Subsection (a-1)(1).

(b)

In computing the district enrichment tax rate of a school district, the total amount of maintenance and operations taxes collected by the school district does not include the amount of:

(1)

the district’s local fund assignment under Section 48.256; or

(2)

taxes paid into a tax increment fund under Chapter 311 (Tax Increment Financing Act), Tax Code.

(c)

For purposes of this section, school district taxes for which credit is granted under Section 31.035 (Performance of Service in Lieu of Payment of Taxes on Homestead of Elderly Person), 31.036 (Performance of Teaching Services in Lieu of Payment of School Taxes on Homestead), or 31.037 (Performance of Teaching Services by Employee in Lieu of Payment of School Taxes on Property of Business Entity), Tax Code, are considered taxes collected by the school district as if the taxes were paid when the credit for the taxes was granted.

(d)

For purposes of this section, the total amount of maintenance and operations taxes collected for an applicable school year by a school district with alternate tax dates, as authorized by Section 26.135 (Tax Dates for Certain School Districts), Tax Code, is the amount of taxes collected on or after January 1 of the year in which the school year begins and not later than December 31 of the same year.

(e)

For purposes of this section, school district taxes for which credit is granted under former Subchapter D, Chapter 313 (Texas Economic Development Act), Tax Code, are considered taxes collected by the school district as if the taxes were paid when the credit for the taxes was granted.

(e-1)

For purposes of this section, the total amount of maintenance and operations taxes collected by a school district includes the amount of taxes refunded under Section 26.1115 (Calculation of Taxes on Residence Homestead Generally)(c), Tax Code.

(f)

For a school year in which the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort (“GL”) under Subsection (a-1)(2) exceeds the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort (“GL”) under Subsection (a-1)(2) for the preceding school year, a school district shall reduce the district’s tax rate under Section 45.0032 (Components of Maintenance and Operations Tax)(b)(2) for the tax year that corresponds to that school year to a rate that results in the amount of state and local funds per weighted student per cent of tax effort available to the district at the dollar amount guaranteed level for the preceding school year. A school district is not entitled to the amount equal to the increase of revenue described by this subsection for the school year for which the district must reduce the district’s tax rate. Unless Section 26.042 (Calculation and Adoption of Certain Tax Rates in Disaster Area)(e), Tax Code, applies to the district, for a tax year in which a district must reduce the district’s tax rate under this subsection, the district may not increase the district’s maintenance and operations tax rate to a rate that exceeds the maximum maintenance and operations tax rate permitted under Section 45.003 (Bond and Tax Elections)(d) or (f), as applicable, minus the reduction of tax effort required under this subsection. This subsection does not apply if the amount of state funds appropriated for a school year specifically excludes the amount necessary to provide the dollar amount guaranteed level of state and local funds per weighted student per cent of tax effort under Subsection (a-1)(2).
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995. Amended by Acts 1997, 75th Leg., ch. 1071, Sec. 21, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 637, Sec. 3, eff. Aug. 30, 1999; Acts 1999, 76th Leg., ch. 396, Sec. 1.20, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 320, Sec. 1, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1187, Sec. 2.09, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1187, Sec. 2.10, eff. Sept. 1, 2002; Acts 2001, 77th Leg., ch. 1505, Sec. 8, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch. 1275, Sec. 2(21), eff. Sept. 1, 2003.
Amended by:
Acts 2006, 79th Leg., 3rd C.S., Ch. 5 (H.B. 1), Sec. 1.08, eff. May 31, 2006.
Acts 2007, 80th Leg., R.S., Ch. 19 (H.B. 5), Sec. 3, eff. May 12, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1191 (H.B. 828), Sec. 2, eff. September 1, 2010.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 63, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1328 (H.B. 3646), Sec. 105(c), eff. September 1, 2009.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 57.26, eff. September 28, 2011.
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 61.08, eff. September 28, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1304 (H.B. 3390), Sec. 21, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 448 (H.B. 7), Sec. 9, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 465 (S.B. 1), Sec. 20, eff. November 3, 2015.
Transferred, redesignated and amended from Education Code, Section 42.302 by Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 1.038, eff. September 1, 2019.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 884 (S.B. 1438), Sec. 2, eff. June 16, 2021.
Acts 2021, 87th Leg., 2nd C.S., Ch. 12 (S.B. 8), Sec. 6, eff. January 1, 2022.

Source: Section 48.202 — Tier Two Allotment, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­48.­htm#48.­202 (accessed Mar. 23, 2024).

48.001
State Policy
48.002
Purposes of Foundation School Program
48.003
Student Eligibility
48.004
Administration of the Program
48.005
Average Daily Attendance
48.006
Average Daily Attendance for Districts in Disaster Area
48.007
Off-campus Programs Approved for Purposes of Average Daily Attendance
48.009
Required Peims Reporting
48.010
Determination of Funding Levels
48.0051
Incentive for Additional Instructional Days
48.051
Basic Allotment
48.052
Sparsity Adjustment
48.053
Allotment for Certain Special-purpose School Districts
48.101
Small and Mid-sized District Allotment
48.102
Special Education
48.103
Allotment for Student with Dyslexia or Related Disorder
48.104
Compensatory Education Allotment
48.105
Bilingual Education Allotment
48.106
Career and Technology Education Allotment
48.107
Public Education Grant Allotment
48.108
Early Education Allotment
48.109
Gifted and Talented Student Allotment
48.110
College, Career, or Military Readiness Outcomes Bonus
48.111
Fast Growth Allotment
48.112
Teacher Incentive Allotment
48.114
Mentor Program Allotment
48.115
School Safety Allotment
48.151
Transportation Allotment
48.152
New Instructional Facility Allotment
48.153
Dropout Recovery School and Residential Placement Facility Allotment
48.154
Tuition Allotment for Districts Not Offering All Grade Levels
48.155
College Preparation Assessment Reimbursement
48.156
Certification Examination Reimbursement
48.201
Purpose
48.202
Tier Two Allotment
48.203
Limitation on Enrichment Tax Rate
48.204
Computation of Aid for District on Military Reservation or at State School
48.251
Financing
48.252
School District Entitlement for Certain Students
48.253
Additional State Aid for Tax Increment Financing Payments
48.254
Additional State Aid for Ad Valorem Tax Credits Under Texas Economic Development Act
48.255
State Compression Percentage
48.257
Local Revenue Level in Excess of Entitlement
48.258
Adjustment for Rapid Decline in Taxable Value of Property
48.259
Adjustment for Optional Homestead Exemption
48.260
Adjustment for Property Value Affected by State of Disaster
48.261
Reimbursement for Disaster Remediation Costs
48.262
Adjustments for Certain Districts Receiving Federal Impact Aid
48.265
Excess Funds for Video Surveillance of Special Education Settings
48.266
Distribution of Foundation School Fund
48.267
Adjustment by Commissioner
48.268
Adjustment for Resolution of Dispute or Error Resulting in Taxation of Same Property by Multiple School Districts
48.269
Estimates Required
48.270
Falsification of Records
48.271
Effect of Appraisal Appeal
48.272
Recovery of Overallocated Funds
48.273
Foundation School Fund Transfers
48.274
Foundation School Fund Transfers to Certain Charter Schools
48.275
Use of Certain Funds
48.277
Formula Transition Grant
48.278
Equalized Wealth Transition Grant
48.279
Maintenance of State Financial Support for Special Education
48.283
Additional State Aid for Certain Districts Impacted by Compression
48.301
Additional Assistance for Districts with Students Using Public Education Grants
48.302
Subsidy for High School Equivalency Examination for Certain Individuals
48.303
Additional State Aid for Regional Education Service Center Staff Salary Increases
48.305
Allotment for Non-enrolled Students Participating in University Interscholastic League Activities
48.307
Additional State Aid for State-approved Instructional Materials
48.308
Additional State Aid for Open Education Resource Instructional Material
48.1041
Compensatory Education Allotment Advisory Committee
48.2541
Additional State Aid for Certain Ad Valorem Tax Refunds
48.2542
Additional State Aid for Adjustment of Limitation on Tax Increases on Homestead of Elderly or Disabled
48.2543
Additional State Aid for Homestead Exemption
48.2551
Maximum Compressed Tax Rate
48.2552
Limitation on Maximum Compressed Rate
48.2556
Posting on Agency Website of Information Related to Reduction of Limitation of Tax on Homesteads of Elderly or Disabled
48.2642
Adjustments for Texas First Early High School Completion Program Graduates
48.2721
Recovery of Funds from Excessive Taxation

Accessed:
Mar. 23, 2024

§ 48.202’s source at texas​.gov