Budget & Taxes (Sales Tax) in Texas

in committee · Texas · House Aug 20, 2025

HB 177: Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.

HB 177 affects junior college districts, hospital districts, and other non-school taxing units with maintenance/operations property tax rates of 2.5 cents or less per $100 of taxable value. It temporarily treats "foregone revenue" as zero for these units before 2026, altering how tax rates are calculated to avoid requiring voter approval for certain rate increases. The bill provides specific formulas for determining "no-new-revenue" and "voter-approval" tax rates, including adjustments when new sales tax revenue is generated. These changes expire December 31, 2028.

Topics ✗ Budget & Taxes

Sub-Topics Property Tax Revenue Sales Tax

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HB 177: Relating to the calculation of certain ad valorem tax rates of a taxing unit and the manner in which a proposed ad valorem tax rate that exceeds the voter-approval tax rate is approved; making conforming changes.