Tex.
Educ. Code Section 48.2552
Limitation on Maximum Compressed Rate
(a)
Each year, the agency shall evaluate the difference between school districts’ maximum compressed rates, as determined under Section 48.2551 (Maximum Compressed Tax Rate).(b)
If a school district’s maximum compressed rate as calculated under Section 48.2551 (Maximum Compressed Tax Rate)(b) would be less than 90 percent of another school district’s maximum compressed rate, the district’s maximum compressed rate is the value at which the district’s maximum compressed rate would be equal to 90 percent of the other district’s maximum compressed rate.(c)
The amount of revenue available to the state as a result of the differences in the amount of state aid and reduction in local revenue between calculating a district’s maximum compressed rate in accordance with Subsection (b) and calculating the district’s maximum compressed rate under Section 48.2551 (Maximum Compressed Tax Rate) shall be used to lower the state compression percentage under Section 48.255 (State Compression Percentage). The agency shall provide estimates to the legislature of the reduction of the state compression percentage based on this subsection.(1)
the rate adopted by the district was previously approved by voters for a tax year subsequent to the 2005 tax year; and(2)
the rate may not exceed the lesser of:(A)
$1.17; or(B)
the district’s maximum compressed tax rate and the additional tax rate necessary to generate the amount of revenue equal to the difference in per student funding.(b)
Before adopting a maintenance and operations tax rate under Subsection (a), a school district must receive approval from the agency. To receive approval from the agency under this subsection the district must submit the following information:(1)
a statement detailing the loss of funding to the district that resulted from the decline in the maximum amount of the basic allotment provided under Section 48.051 (Basic Allotment)(a) or (b);(2)
the proposed additional tax effort and the amount of funding the proposed additional tax effort will generate;(3)
evidence that the proposed additional tax effort described by Subdivision (2) had been previously authorized by voters subsequent to the 2005 tax year; and(4)
any other information required by the commissioner.(c)
The agency’s approval of a district’s tax rate under Subsection (b) expires at the end of each tax year.(d)
Any additional tax effort by a school district authorized under this section is not:(1)
eligible for funding under Subchapter B, C, or D;(2)
eligible for the guaranteed yield amount of state funds under Section 48.202 (Tier Two Allotment); or(3)
subject to the limit on local revenue under Section 48.257 (Local Revenue Level in Excess of Entitlement).(e)
The commissioner shall reduce state aid or adjust the limit on local revenue under Section 48.257 (Local Revenue Level in Excess of Entitlement) in an amount equal to the amount of revenue generated by a school district’s tax effort that is not in compliance with this section or Section 48.2551 (Maximum Compressed Tax Rate).(f)
This section does not apply to a school district to which Section 45.003 (Bond and Tax Elections)(f) applies.(b)
If a school district’s maximum compressed tax rate as calculated under Subsection (a) would be less than 90 percent of another school district’s maximum compressed tax rate under Subsection (a), the district’s maximum compressed tax rate is the value at which the district’s maximum compressed tax rate would be equal to 90 percent of the other district’s maximum compressed tax rate.(c)
Notwithstanding any other provision of this title or Chapter 26 (Assessment), Tax Code, for purposes of determining funding for school districts for the 2023-2024 school year, a reference in any of the following provisions of law to a school district’s maximum compressed tax rate or maximum compressed rate as determined under Section 48.2551 (Maximum Compressed Tax Rate) means the maximum compressed tax rate determined for the district under this section:(1)
Section 13.054 (Academically Unacceptable School Districts)(f);(2)
Section 45.003 (Bond and Tax Elections)(d);(3)
Section 45.0032 (Components of Maintenance and Operations Tax)(a);(4)
Section 48.051 (Basic Allotment)(a);(5)
Sections 48.2553(a) and (e);(6)
Section 48.2556; and(7)
Section 26.08 (Automatic Election to Approve Tax Rate of School District)(n), Tax Code.(d)
For purposes of Section 30.003 (Support of Students Enrolled in Texas School for the Blind and Visually Impaired or Texas School for the Deaf)(f-1), a reference in that section to Section 48.2551 (Maximum Compressed Tax Rate) includes this section.(e)
Notwithstanding any other provision of this title, for purposes of determining a school district’s maximum compressed tax rate under Section 48.2551 (Maximum Compressed Tax Rate) for the 2024-2025 school year, the value of the district’s “PYMCR” is the maximum compressed tax rate determined for the district under this section for the preceding school year.(f)
This section expires September 1, 2025.
Source:
Section 48.2552 — Limitation on Maximum Compressed Rate, https://statutes.capitol.texas.gov/Docs/ED/htm/ED.48.htm#48.2552 (accessed Jun. 5, 2024).
