HB 46 sets a spending cap for Texas counties, cities, school districts, and other local governments authorized to levy property taxes or issue bonds. It limits annual expenditures to either the previous year's total spending or that amount adjusted for population growth and inflation. Local governments must calculate this annual adjustment using data from the U.S. Census Bureau and post it online by January 31. Exceptions allow exceeding the cap if two-thirds of voters approve additional spending in a special election.
HB 203 limits annual spending for Texas local governments (like counties, cities, school districts, and special districts) that impose property taxes or issue bonds. It requires these entities to cap annual spending increases at the combined rate of inflation (based on the consumer price index) and population growth, excluding disaster relief costs. The bill defines key terms like "inflation rate" and "disaster relief cost" to calculate the spending limit. This directly affects how local governments budget and adjust tax rates each year. The law aims to control spending growth by tying it to measurable economic and demographic factors.
HB 111 requires a two-thirds majority vote of all voters in an election to approve general obligation bonds issued by Texas political subdivisions (like cities, counties, or school districts). It changes the existing standard by mandating that at least 66.7% of voters must approve bond issuances, instead of a simple majority. This applies only to bonds authorized on or after the law's effective date. The bill does not affect existing bond authorizations or alter the process for other types of bonds.
HJR 16 proposes a constitutional amendment to exempt the full market value of a primary residence from property tax for two groups: homeowners aged 65 or older who have held the homestead exemption for at least 10 years, and surviving spouses who were 55 or older when their spouse died and continue living in the home. The amendment requires the legislature to create revenue protection formulas for school districts and allows continued tax collection for property-secured debt obligations until those debts are paid. If approved by voters in May 2026, the exemption would take effect January 1, 2027, providing significant tax relief for eligible elderly homeowners and their surviving spouses.
This bill proposes a constitutional amendment to ban ad valorem taxes (property taxes) in Texas after January 1, 2031. It would prevent cities, counties, and other local governments from levying these taxes on real or personal property starting in 2031. The amendment also requires the state to guarantee repayment of school district bonds issued before November 4, 2025, that were secured by pre-2031 property taxes. The proposed amendment must be approved by voters in the November 4, 2025, election.
HB 301 changes the voter approval threshold for local tax rate increases that exceed a community's existing voter-approved tax rate. Currently, a simple majority (over 50%) of votes is required, but this bill would raise that to a two-thirds majority. It amends Texas codes to update election notices, requiring clear comparisons of the proposed tax rate, the "no-new-revenue" rate, and the voter-approval rate. This directly affects cities, counties, and school districts seeking to raise property taxes beyond their current approved limits without holding an election.
HB 97 would reduce property taxes for Texas school districts by using surplus state revenue. It requires the state to lower the "compression percentage" (the formula determining how much local property taxes can be reduced) when funds are deposited into the property tax relief fund. If this percentage reaches zero, school districts cannot impose certain local maintenance taxes and will receive full state funding as if they had the maximum tax rate with no local share. This bill directly affects all Texas public school districts by changing how state funds are allocated to offset local property tax burdens.
This joint resolution proposes a constitutional amendment to repeal the Dementia Prevention and Research Institute of Texas and its dedicated fund. It would redirect $3 billion from that fund to the Texas Education Agency to reduce property taxes through lower state compression percentages. If approved by voters in the November 2025 election, the amendment would eliminate dedicated dementia research funding while shifting those resources to property tax relief. The bill does not change existing dementia research programs but redirects existing funding to a different state priority.
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.
HB 99 replaces school districts' local property taxes (M&O taxes) with a state value-added tax (VAT) starting in 2030, if voters approve a related constitutional amendment. The bill repeals school district authority to levy M&O property taxes and creates a 6.72% state VAT on goods and services, with all revenue directed to the Foundation School Fund for public education operations. It also repeals specific sections of the Tax Code and Education Code related to local property taxes. The law requires voter approval for the constitutional change before taking effect on January 1, 2030.
