Bill Caption

Relating to the applicability of certain laws to certain public schools and certain requirements of a charter school that receives certain tax revenues.

Fiscal Notes

Estimated two-year net impact to general related funds for HB 3610, as engrossed: a negative impact of ($2,898,000) through the biennium ending August 31, 2023.

In addition to the costs associated with exempting from the property tax the value of real property that is leased to charter schools, provisions of the bill would exempt the portion of real property leased to an independent school district or community college district. As a result, taxable property values could be reduced and the related costs to the Foundation School Fund could be increased through the operation of the school finance formulas.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

HB 3610 would classify an open-enrollment charter school as a political subdivision for purposes of exempting property leased or owned by charter schools from property taxes.

The owner of the tax exemption shall transfer the amount of savings from the exemption to the tenant or reduce the common area maintenance fee in a proportionate amount based upon square footage of the property.

Vote Recommendation Notes

Texas Action supports HB 3610 which would eliminate an unnecessary barrier to the successful operation of charter schools and help promote choice within the public school system.