The Texas Senate Finance Committee has posted a public hearing notice for 10 a.m., Tuesday, September 21. The committee will consider SB 1 by Sen. Paul Bettencourt relating to a temporary reduction in the maximum compressed tax rate (MCR) of a school district and the form of the ballot proposition to be used in an election to approve a tax rate adopted by a school district that exceeds the district’s voter-approval tax rate; making an appropriation.
This compression would be for the 2022-23 school year and funds appropriated by the Legislature would pay for the measure. If a school district’s MCR would be less than 90 percent of another school district’s MCR, the first school district’s MCR would be equal to 90 percent of the other district’s MCR. The bill requires the comptroller to provide the Legislature with an update on the biennial revenue estimate by June 1, 2022.
An identical measure passed the Senate during the most recent second called special session and the estimated cost from the Legislative Budget Board is $2-4 billion. While tax relief is not currently on the call of items the Legislature can consider, the governor could add the issue at any time during this special session.