HB 264 adds Section 403.108 to the Texas Government Code, mandating that a portion of surplus state revenue be allocated exclusively for ad valorem (property) tax relief. Specifically, the bill requires the comptroller to deposit 50% of surplus general revenue, determined at the end of each state fiscal biennium, into a dedicated account within the general revenue fund. These funds may only be appropriated by the legislature for the purpose of reducing property taxes. This Act applies to bienniums beginning on or after September 1, 2027, with an effective date of September 1, 2025​.