HB 4456 by Harris, C.J.: Alteration in the Way the No-New-Revenue Tax Rate is Calculated

HB 4456 seeks to clarify the process for determining a school district’s no-new-revenue tax rate by reference to the rate calculation in the Texas Education Code. This new calculation will result in a higher no-new-revenue rate and ultimately higher tax revenues due to the inclusion of both state and local funding as a part of the school finance formula. Changing the way the rate is calculated would potentially prolong the path to the elimination of the property tax altogether. For these reasons, TFR opposes HB 4456.