Budget & Taxes (Business Taxes)

introduced · Texas · House Aug 19, 2025

HB 261: Relating to a limitation on increases in the appraised value of certain commercial real property for ad valorem tax purposes.

HB 261 limits annual increases in the tax assessment value for commercial properties under $10 million in market value. It restricts how much a property's appraised value can rise each year to either the prior year's market value or a formula (20% of last year's appraised value plus last year's value plus new improvements). This applies to properties held for income production and takes effect January 1, 2027, for tax years following that date. The bill excludes properties appraised under specific subchapters of the tax code.

Topics ✗ Budget & TaxesOpposes Budget & TaxesLimits annual property tax assessment increases for commercial properties, reducing tax revenue growth and providing tax relief to commercial owners.90% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Texas · House Aug 19, 2025

HJR 28: Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of certain commercial real property for ad valorem tax purposes.

HJR 28 proposes a constitutional amendment allowing Texas lawmakers to cap the taxable value of certain commercial properties. It would let the legislature limit a property’s appraised value for property taxes to 120% (or a higher percentage set by law) of its prior year’s value, but only for properties meeting specific definitions and market value thresholds. This cap would apply only to commercial real estate owners who qualify under future laws defining "commercial property" and meeting eligibility rules. The amendment requires voter approval in 2026 and would expire if a property changes ownership or no longer qualifies as commercial.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill caps taxable value of commercial property at 120% of prior year, reducing tax revenue for qualifying properties, opposing stronger tax collection.90% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Texas · House Aug 19, 2025

HJR 27: Proposing a constitutional amendment to authorize the legislature to limit the maximum appraised value of certain commercial real property for ad valorem tax purposes.

This constitutional amendment proposal would allow Texas lawmakers to cap the taxable value of commercial properties for property tax purposes. Specifically, it would authorize the legislature to limit a property's appraised value to either 110% (or a higher percentage) of its previous year's appraised value or its current market value - whichever is lower. The cap would apply only to properties meeting legislative definitions and eligibility criteria, such as having a market value below a specified threshold. The amendment requires voter approval in a 2026 election before taking effect.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes capping commercial property tax appraisals, reducing taxable value for eligible properties to provide tax relief.95% confidence

Sub-Topics Business Taxes Property Tax

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in committee · Texas · House Aug 20, 2025

HB 92: Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.

HB 92 proposes replacing certain existing state and local taxes - including school district property taxes - with a new 6.72% state value added tax (VAT) on business transactions. The bill directly affects businesses selling goods or services in Texas, requiring them to pay tax on their sales (output tax) minus tax paid on their purchases (input tax), with exemptions for small businesses, government entities, and nonprofits. Key provisions include excluding financial services, intercompany transactions, and federally prohibited items from the tax, while directing all revenue to the state general fund. This reform aims to overhaul school finance by shifting revenue sources, though it does not specify how school funding will be adjusted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill replaces property taxes with new 6.72% VAT, directly altering tax structure and imposing new tax obligations per its title and summary.92% confidence

Sub-Topics Business Taxes Sales Tax State Budget

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introduced · Texas · House Aug 27, 2025

HB 304: Relating to a franchise tax credit for entities that establish a grocery store or healthy corner store in a food desert.

HB 304 creates a state franchise tax credit for businesses opening grocery stores or "healthy corner stores" (under 2,000 sq. ft. with 20% fresh food space) in designated food deserts. It directly affects businesses that open such stores after January 1, 2026, in low-income areas with limited healthy food access. To qualify, stores must accept WIC and SNAP benefits within 90 days of opening and operate year-round. The credit reduces the business’s state tax liability for establishing these stores, aiming to improve healthy food access in underserved communities.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates franchise tax credit reducing business tax liability for qualifying grocery stores in food deserts, directly providing tax relief under Taxation--Franchise.95% confidence ✓ HealthcareSupports HealthcareBill targets food deserts with tax incentives for healthy food access, directly addressing public health via Health and Human Services subjects while requiring WIC/SNAP acceptance in underserved areas.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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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 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 77: Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.

HB 77 creates a statewide 6.72% value-added tax (VAT) on business transactions in Texas, replacing certain existing local property taxes for school districts. It directly affects businesses (including small businesses, which are exempt), school districts (through the repeal of some local property taxes), and taxpayers who supply goods or services. The bill calculates tax as the difference between "output tax" (tax on sales) and "input tax" (tax paid on business purchases), with exemptions for governments, nonprofits, and specific services like financial transactions. This tax would fund school finance reforms while modifying how local and state taxes are collected.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes statewide VAT to replace school district property taxes, funding school finance reform and creating new tax revenue for state budget.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Texas · House Aug 20, 2025

HB 98: Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.

HB 98 would establish a 6.72% state value-added tax (VAT) on businesses selling goods or services in Texas, replacing certain existing local taxes like school district property taxes. Businesses would pay tax only on the "value added" to their products or services - subtracting taxes paid on business inputs from taxes collected on sales. The bill exempts small businesses, government entities, and nonprofits from the tax, while excluding financial services and other specified transactions. This VAT would fund school finance reform by replacing some local school district taxes with a new statewide revenue stream.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill imposes 6.72% state VAT, replacing local taxes, directly advancing tax policy for fiscal management and school finance reform.90% confidence

Sub-Topics Business Taxes Sales Tax

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