HB 275 proposes using surplus state revenue to reduce school district maintenance and operations (M&O) property taxes. The bill amends Section 48.255 of the Education Code to include a mechanism for reducing the state compression percentage (SCP) used to determine M&O tax rates. Specifically, it mandates that any surplus state revenue be deposited into a property tax relief fund, which the commissioner will use to reduce the SCP to the lowest possible percentage. If the SCP reaches zero, school districts would be prohibited from imposing a Tier 1 M&O tax, and districts would receive state funding as though they had a maximum compressed tax rate. This change is contingent upon a constitutional amendment and is set to take effect in the fiscal biennium beginning September 1, 2027​.