Midland ISD Sues Texas Agency Over $83 Million School Tax Recapture
Updated
Updated · The Center Square · Jul 23
Midland ISD Sues Texas Agency Over $83 Million School Tax Recapture
3 articles · Updated · The Center Square · Jul 23
Summary
$83 million of Midland ISD’s $313 million in 2025-26 property-tax revenue is being recaptured by the state, prompting the district to sue the Texas Education Agency and seek to void the system as unconstitutional.
The lawsuit argues Texas is effectively levying a statewide property tax barred by Article VIII, Section 1-e because TEA sets the district’s M&O rate above local needs and forces Midland to send the excess to Austin.
Midland also challenges the 2019 HB 3 funding changes, saying they stripped elected trustees of authority to set tax rates and left the board controlling only a fraction of its locally raised money.
The unanimous board-approved case could test who controls local school tax revenue in Texas, where property-rich districts send excess collections to the state under the recapture system.