Tex. Educ. Code Section 49.004
Annual Review of Local Revenues


(a)

Not later than July 15 of each year, using the estimates of enrollment and taxable property value under Section 48.269 (Estimates Required), the commissioner shall review the local revenue level of school districts in the state and shall notify:

(1)

each district with a local revenue level in excess of entitlement;

(2)

each district to which the commissioner proposes to annex property detached from a district notified under Subdivision (1), if necessary, under Subchapter G; and

(3)

each district to which the commissioner proposes to consolidate a district notified under Subdivision (1), if necessary, under Subchapter H.

(a-1)

This subsection applies only if the constitutional amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters in an election held for that purpose. As soon as practicable after receiving revised property values that reflect adoption of the constitutional amendment, the commissioner shall review the local revenue level of districts in the state and revise as necessary the notifications provided under Subsection (a) for the 2023-2024 school year. This subsection expires September 1, 2024.

(b)

If, before the dates provided by this subsection, a district notified under Subsection (a)(1) has not successfully exercised one or more options under Section 49.002 (Options to Reduce Local Revenue Level) that reduce the district’s local revenue level to a level equal to or less than the level established under Section 48.257 (Local Revenue Level in Excess of Entitlement), the commissioner shall order the detachment of property from that district as provided by Subchapter G. If that detachment will not reduce the district’s local revenue level to a level equal to or less than the level established under Section 48.257 (Local Revenue Level in Excess of Entitlement), the commissioner may not detach property under Subchapter G but shall order the consolidation of the district with one or more other districts as provided by Subchapter H. An agreement under Section 49.002 (Options to Reduce Local Revenue Level)(1) or (2) must be executed not later than September 1 immediately following the notice under Subsection (a). An election for an option under Section 49.002 (Options to Reduce Local Revenue Level)(3), (4), or (5) must be ordered before September 1 immediately following the notice under Subsection (a).

(b-1)

This subsection applies only to a district that has not previously held an election under this chapter. Notwithstanding Subsection (b), a district that enters into an agreement to exercise an option to reduce the district’s local revenue level in excess of entitlement under Section 49.002 (Options to Reduce Local Revenue Level)(3), (4), or (5) for the 2023-2024 school year may request and, as provided by Section 49.0042 (Transitional Provisions: Increased Homestead Exemption and Limitation on Tax Increases)(a), receive approval from the commissioner to delay the date of the election otherwise required to be ordered before September 1. This subsection expires September 1, 2024.

(c)

A district notified under Subsection (a) may not adopt a tax rate for the tax year in which the district receives the notice until the commissioner certifies that the district has reduced the district’s local revenue level in excess of entitlement to the level established under Section 48.257 (Local Revenue Level in Excess of Entitlement).

(c-1)

Notwithstanding Subsection (c), a district that receives approval from the commissioner to delay an election as provided by Subsection (b-1) may adopt a tax rate for the 2023 tax year before the commissioner certifies that the district has reduced its local revenue level to the level established by Section 48.257 (Local Revenue Level in Excess of Entitlement). This subsection expires September 1, 2024.

(d)

A detachment and annexation or consolidation under this chapter:

(1)

is effective for Foundation School Program funding purposes for the school year that begins in the calendar year in which the detachment and annexation or consolidation is agreed to or ordered; and

(2)

applies to the ad valorem taxation of property beginning with the tax year in which the agreement or order is effective.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995. Amended by Acts 1999, 76th Leg., ch. 396, Sec. 1.05, eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 465 (S.B. 1), Sec. 11, eff. June 15, 2015.
Transferred, redesignated and amended from Education Code, Section 41.004 by Acts 2019, 86th Leg., R.S., Ch. 943 (H.B. 3), Sec. 1.049, eff. September 1, 2019.
Amended by:
Acts 2023, 88th Leg., 2nd C.S., Ch. 1 (S.B. 2), Sec. 3.09, eff. July 22, 2023.

Source: Section 49.004 — Annual Review of Local Revenues, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­49.­htm#49.­004 (accessed Mar. 23, 2024).

49.001
Definitions
49.002
Options to Reduce Local Revenue Level
49.003
Inclusion of Attendance Credit and Nonresidents in Weighted Average Daily Attendance
49.004
Annual Review of Local Revenues
49.005
Comptroller and Appraisal District Cooperation
49.006
Rules
49.007
Commissioner to Approve Subsequent Boundary Changes
49.008
Homestead Exemptions
49.009
Tax Abatements
49.010
Tax Increment Obligations
49.011
Contingency
49.012
Date of Elections
49.013
Procedure
49.0041
Local Revenue Level in Excess of Entitlement After Review Notification
49.0042
Transitional Provisions: Increased Homestead Exemption and Limitation on Tax Increases
49.051
Agreement
49.052
Governing Law
49.053
Governance Plan
49.054
Incentive Aid
49.101
Agreement
49.102
Governing Law
49.103
Allocation of Appraised Value of Divided Unit
49.104
Allocation of Indebtedness
49.105
Notice
49.0121
Transitional Election Dates
49.151
Agreement
49.152
Credit
49.153
Cost
49.154
Payment
49.155
Duration
49.156
Voter Approval
49.157
Credit for Appraisal Costs
49.158
Limitation
49.201
Agreement
49.202
Voter Approval
49.203
Wada Count
49.204
Transfers
49.205
Career and Technology Education Programs
49.251
Agreement
49.252
Date of Election
49.253
Proposition
49.254
Approval
49.255
Consolidated Taxing District
49.256
Governance
49.257
Maintenance Tax
49.258
Revenue Distribution
49.259
Taxes of Component Districts
49.260
Optional Total Tax Base Consolidation
49.301
Definition
49.302
Determination of Taxable Value
49.303
Property Subject to Detachment and Annexation
49.304
Taxation of Personal Property
49.305
Detachment of Property
49.306
Annexation of Property
49.307
Limitations on Detachment and Annexation
49.308
Orders and Notice
49.309
Treatment of Subdivided Property
49.310
Duties of Chief Appraiser
49.311
Student Attendance
49.312
Bond Taxes
49.313
Determination by Commissioner Final
49.351
Commissioner Order
49.352
Selection Criteria
49.353
Governance
49.354
Dissolution of Consolidated District
49.355
Fund Balances
49.356
Employment Contracts
49.357
Application of Sparse Adjustment and Small and Transportation Allotments

Accessed:
Mar. 23, 2024

§ 49.004’s source at texas​.gov