April 3, 2019
Representative Jared Patterson today joined an overwhelming majority of the Texas House in voting for House Bill 3, also known as The Texas Plan. This comprehensive legislation will fundamentally transform the public school finance system in Texas, paving the way for real, meaningful property tax relief. Representative Patterson had previously joined Chairman Dan Huberty and a majority of his House colleagues as a coauthor on the bill.
“I am incredibly excited to see HB 3 win such overwhelming approval in this chamber, and feel honored to be playing a role in this transformative measure,” said Representative Patterson. “This legislation is the first step to authentic, meaningful property tax reform – which must begin with a school finance overhaul.”
House Bill 3 invests $9 billion above enrollment growth and current law entitlement toward student achievement, teacher quality and property tax reform, and will put more money into Texas classrooms than ever before. It represents the first major rewrite of the state’s public school finance system undertaken without threat of a court order. Initial reports indicate that House Bill 3 will decrease “Robin Hood” recapture by more than $100 million in the school districts of HD 106, including eliminating it entirely in four districts. HB 3 will reduce annual recapture in these 10 districts from $109,395,068 under current law to $7,945,503. Statewide, recapture will decrease by 38% going forward, dropping from $7.7 billion to $4.7 billion.
Estimates indicated that maintenance and operations property tax rates for HD 106 school districts will decline as a result of HB 3. Aubrey, Frisco, Little Elm, Pilot Point, Prosper, and Sanger ISDs, all currently taxing at the maximum rate of $1.17, will decline 8 cents to $1.09. Denton and Lewisville ISDs will also see a tax rate decline, due to the tax rate compression provisions of the legislation. HB 3 introduces stricter voter approval requirements for tax rate increases, requiring a tax ratification election for any rate hike above a penny.
“In conjunction with House Bill 2 and other legislation to come, the House is taking aggressive action to provide real property tax relief – defined as actual, lower property tax bills for homeowners. Skyrocketing property taxes are the single biggest policy issue afflicting North Texas, and I thank Speaker Bonnen and my House colleagues for prioritizing relief,” said Rep. Patterson. “As an HB 3 coauthor, I look forward to working with the Texas Senate going forward to ensure this legislation crosses Governor Abbott’s desk for signature.”
