Budget & Taxes

introduced · Texas · House Aug 15, 2025

HB 107: Relating to municipal and county ad valorem tax relief.

HB 107 requires Texas counties and municipalities to use excess tax revenue for property tax relief. It defines "surplus revenue" as funds collected above amounts needed to cover budget growth adjusted for population increases and inflation. Local governments must apply this surplus to directly reduce the property taxes owed by residents in the current fiscal year. The bill establishes specific formulas using the state's consumer price index and population growth rate to calculate the required relief.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates use of surplus revenue for property tax relief, directly reducing taxes for residents per defined formulas.95% confidence

Sub-Topics Property Tax Revenue

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introduced · Texas · Senate Aug 15, 2025

SB 36: Relating to powers of regional transportation authorities.

This bill allows local governments within regional transportation authorities to use up to 25% of their annual sales tax revenue for local mobility projects. It directly affects cities and counties that are part of these regional authorities, enabling them to fund sidewalks, trails, streetlights, traffic signals, and drainage improvements. Funds must be distributed with 50% provided at the start of the fiscal year and 50% reimbursed later, with unused funds required to pay down debt secured by a 1% sales tax. The bill creates a formal process for local units to allocate transportation funds while maintaining regional oversight.

Topics ✓ Budget & TaxesSupports Budget & TaxesPermits local governments to allocate existing sales tax revenue toward public infrastructure projects, supporting budget allocation for essential services.85% confidence ✓ TransportationSupports TransportationBill allocates 25% of sales tax revenue for transportation infrastructure projects including sidewalks, trails, and traffic signals, directly funding mobility improvements.95% confidence

Sub-Topics Business Taxes Debt & Bonds Sales Tax Airports Transportation Funding Tags Local Government

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in committee · Texas · House Aug 18, 2025

HB 67: Relating to the allocation and deposit of certain surplus state revenue to the property tax relief fund for use in reducing school district maintenance and operations ad valorem taxes.

HB 67 would require Texas to deposit half of any surplus state general revenue at the end of each biennium into a property tax relief fund. This fund would be used exclusively by the Texas Education Agency to reduce school district property taxes through adjustments to the state's "compression percentage" formula. The bill directly affects school districts and property taxpayers by creating a mechanism to lower maintenance and operations tax rates. It applies starting with the 2027-2029 state fiscal biennium and takes effect 91 days after the legislative session ends.

Topics ✓ Budget & TaxesSupports Budget & TaxesMandates deposit of surplus revenue into property tax relief fund to reduce school district property taxes, directly providing tax relief to property taxpayers.95% confidence ✓ EducationSupports EducationBill directs surplus state revenue to reduce school district property taxes via dedicated fund, directly strengthening school funding stability and lowering taxpayer burden for education.95% confidence

Sub-Topics Property Tax Revenue State Budget

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in committee · Texas · House Aug 18, 2025

HB 142: Relating to a reduction in the maximum compressed tax rate of a school district; making an appropriation.

HB 142 reduces the maximum tax rate school districts can levy for the 2026-2027 school year by directing $200 million in federal border security funds to the Texas Education Agency. It requires the commissioner to calculate each district's current maximum tax rate and reduce it equally using these funds, while ensuring no district's rate falls below 90% of another district's rate. This change directly affects all Texas public school districts by lowering their allowable tax rates for that school year. The bill updates how school funding formulas reference these tax rates, ensuring the reduction is reflected in calculations for state funding. The appropriation expires September 1, 2028.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces school district tax rates using federal funds, providing direct tax relief for public education funding while maintaining fiscal responsibility.95% confidence ✓ EducationSupports EducationRedirects $200M federal border funds to lower school district tax rates, increasing district funding without local tax hikes per TEA appropriation.95% confidence

Sub-Topics School Funding

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in committee · Texas · House Aug 18, 2025

HB 166: Relating to the elimination of school district maintenance and operations ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

HB 166 would prohibit Texas school districts from imposing maintenance and operations property taxes starting January 1, 2028, directly affecting all school districts and property owners in those districts. It allows districts to instead levy a new "enrichment tax" of up to $0.17 per $100 in property value, separate from state funding. The bill also creates a joint legislative committee to study alternative revenue sources, such as expanding state consumption taxes, to fulfill Texas's constitutional duty to fund public schools. This bill focuses on restructuring school funding mechanisms rather than changing existing tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates school district property taxes (a major tax burden) and replaces with lower enrichment tax ($0.17/$100), providing direct tax relief to property owners per bill's explicit language.95% confidence ✗ EducationOpposes EducationBill replaces mandatory M&O property taxes with a capped enrichment tax ($0.17/$100), reducing school district revenue potential and shifting funding burden to state alternatives.95% confidence

Sub-Topics Property Tax School Funding

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introduced · Texas · House Aug 18, 2025

HCR 10: Urging Congress to propose and submit to the states for ratification a federal balanced budget amendment to the U.S. Constitution.

This concurrent resolution (HCR 10) urges the U.S. Congress to propose a constitutional amendment requiring a balanced federal budget. It does not create new law but expresses Texas's support for a constitutional change that would prevent federal deficit spending by mandating that annual government spending not exceed revenue. The resolution directs Texas officials to send copies to Congress and request its inclusion in the Congressional Record as a formal request. This is a symbolic action with no legal effect on federal budgeting.

Topics ✓ Budget & TaxesSupports Budget & TaxesUrges federal balanced budget amendment, promoting fiscal responsibility by requiring annual spending not to exceed revenue, aligning with 'promotes fiscal responsibility' indicator.95% confidence

Sub-Topics Government Spending State Budget

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in committee · Texas · House Aug 18, 2025

HB 180: Relating to a temporary reduction in the maximum compressed tax rate of a school district; making an appropriation.

HB 180 temporarily reduces the maximum tax rate school districts can set for the 2026-2027 school year by using federal border security funds appropriated to the Texas Education Agency. It directly affects all Texas public school districts by lowering their calculated tax rate, ensuring no district's rate falls below 90% of another district's rate under the new calculation. The bill modifies several education code provisions to reflect this reduced rate for funding purposes and expires September 1, 2028. This is a concrete policy change using specific federal funds to lower school district tax burdens for one school year.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill temporarily reduces school district tax rates using federal funds, providing tax relief and aligning with fiscal management goals for education funding.90% confidence ✓ EducationSupports EducationBill uses federal funds to temporarily lower school district tax rates, increasing available funding without local tax increases, directly supporting school finance stability.95% confidence

Sub-Topics School Funding

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in committee · Texas · House Aug 20, 2025

HB 178: Relating to efficiency audits for certain political subdivisions.

HB 178 requires non-school district political subdivisions (like cities, counties, and special districts) that exceed the "no-new-revenue tax rate" for five consecutive tax years to conduct an independent efficiency audit. The audit examines fiscal management, resource use, and operational efficiency, with the political subdivision covering all costs. Exceptions apply for areas declared disaster zones under state law, allowing voter approval to bypass the audit during a two-year window. Results must be discussed in an open meeting and posted online within 30 days of the meeting, and audits must be completed within three months of hiring an auditor.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires efficiency audits for fiscal management, promoting responsible spending by local governments under Taxation--General subject.85% confidence

Sub-Topics Audits & Accountability Property Tax State Budget

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in committee · Texas · House Aug 20, 2025

HB 246: Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

HB 246 creates a joint legislative committee to study how to replace ad valorem taxes (property taxes) with local sales taxes. The committee, composed of five House members and five Senators appointed by leadership, will examine what sales tax rates would be needed to maintain current local tax revenue, address disparities between communities, and evaluate options for redistributing funds. It must submit a report by December 1, 2026, and the bill simultaneously bans all ad valorem taxes effective January 1, 2027. This affects local governments that currently rely on property taxes for revenue, requiring them to transition to sales tax systems. The bill focuses on the structural shift in tax policy, not specific revenue outcomes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly proposes abolishing property taxes and studying replacement with sales taxes, directly addressing tax policy change within the Budget & Taxes topic.90% confidence

Sub-Topics Business Taxes Property Tax Sales Tax

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in committee · Texas · House Aug 20, 2025

HB 222: Relating to reducing school district maintenance and operations ad valorem taxes through the use of certain surplus state revenue.

HB 222 uses surplus state revenue to reduce property tax rates for Texas school districts. It directs 90% of excess general revenue (over 104% of the previous biennium) into a property tax relief fund, which the state comptroller must allocate to lower the "state compression percentage" in school funding formulas. If this percentage reaches zero, school districts cannot impose tier one maintenance and operations property taxes and receive full state funding as if they had the maximum allowable tax rate. The bill directly affects all Texas public school districts and takes effect for the 2025-2027 fiscal biennium.

Topics ✓ Budget & TaxesSupports Budget & TaxesUses surplus state revenue to directly reduce school district property taxes, providing tax relief via state funds per bill's allocation mechanism.95% confidence ✓ EducationSupports EducationDirects surplus revenue to lower state compression percentage, increasing state funding for schools and reducing reliance on district property taxes.90% confidence

Sub-Topics Audits & Accountability Property Tax Revenue School Funding

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