HB 218 amends Section 403.109 of the Texas Government Code to direct the allocation of certain surplus state revenue toward the property tax relief fund. Specifically, if the state’s general revenue for a biennium exceeds 104% of the revenue received in the previous biennium, the comptroller is required to allocate the excess to the property tax relief fund. These funds are earmarked solely for the Texas Education Agency to reduce school district maintenance and operations (M&O) ad valorem taxes through adjustments to the state compression percentage, as defined by Section 48.255 of the Education Code. This bill applies to the biennium beginning September 1, 2027, and takes effect on September 1, 2025​.