Texas Education Code

Sec. § 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.

(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 26.08 (Automatic Election to Approve Tax Rate of School District)(a-1), 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.
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Jun. 7, 2021