Texas Statutes
Subchapter A. General Provisions
Section 49.004. Annual Review of Local Revenues

Sec. 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, 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.
(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 that reduce the district's local revenue level to a level equal to or less than the level established under Section 48.257, 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, 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(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(3), (4), or (5) must be ordered before September 1 immediately following the notice under Subsection (a).
(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.
(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.

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