CHAPTER 48. FOUNDATION SCHOOL PROGRAM – SUBCHAPTER E. TIER TWO ENTITLEMENT

TITLE 2. PUBLIC EDUCATION

SUBTITLE I. SCHOOL FINANCE AND FISCAL MANAGEMENT

Texas Property Tax Code 2023 Edition: The Texas Property Tax Code available on this website are current through the 89th Regular Legislative Session, 2025. The constitutional provisions found on this website are current through the amendments approved by voters in November 2023.

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, is determined by the formula:
GYA = (GL X WADA X DTR X 100) – LR
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, Chapter 403, Government Code, or, if applicable, under Section 48.258 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, Chapter 403, Government Code, or, if applicable, under Section 48.258 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 amount that results from multiplying the maximum amount of the basic allotment provided under Section 48.051 for the applicable school year by 0.02084, 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) the amount that results from multiplying the maximum amount of the basic allotment provided under Section 48.051 for the applicable school year 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 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 Code.
(c) For purposes of this section, school district taxes for which credit is granted under Section 31.035, 31.036, or 31.037, 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 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, Tax Code, are considered taxes collected by the school district as if the taxes were paid when the credit for the taxes was granted.
(e-1) For purposes of this section, the total amount of maintenance and operations taxes collected by a school district includes the amount of taxes refunded under Section 26.1115(c), Tax Code.
(e-2) For purposes of this section, the total amount of maintenance and operations taxes collected by a school district not required to reduce its local revenue level under Section 48.257 includes the amount of tax revenue received from a county-wide equalization tax.
(f) Repealed by Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(2), eff. September 1, 2025.

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.

Amended by:
Acts 2021, 87th Leg., R.S., Ch. 884 (S.B. 1438), Sec. 2, eff. June 16, 2021.
Acts 2021, 87th Leg., 2nd C.S., Ch. 12 (S.B. 8), Sec. 6, eff. January 1, 2022.
Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.17, eff. September 1, 2025.
Acts 2025, 89th Leg., R.S., Ch. 1065 (H.B. 2), Sec. 7.24(2), eff. September 1, 2025.