SB 9 Texas Senate · 89th Legislature, 1st Called Session (2025)

Relating to the calculation of the voter-approval tax rate for certain taxing units.

SB 9 amends Texas Tax Code sections to update how local taxing units (like cities, counties, and school districts) calculate voter-approval tax rates when implementing or adjusting sales taxes. It introduces specific formulas that account for new sales tax revenue by adding a "sales tax gain rate" to the calculation, ensuring the voter-approval rate reflects the impact of the new revenue source. The bill differentiates rules based on the taxing unit type, applying multipliers of 1.08 for special districts, 1.035 for small municipalities/counties (<30,000 population), and 1.025 for others. These changes directly affect how local governments determine tax rates that require voter approval when they add or modify sales taxes.

Bill status passed 3 of 5 stages cleared

Introduction

Jul 2025

Committee Review

Aug 2025

Senate Passage

Aug 2025

House Passage

Governor

Introduced Jul 30, 2025 Last action Aug 6, 2025

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What changed between versions

Introduced → Engrossed · 5 edits · Aug 6, 2025

MODERATE

This bill updates the formulas used to calculate voter-approval tax rates in Texas, raising the population thresholds for different taxing units and adjusting the multipliers applied to maintenance and operations costs. It also introduces a new 'disaster relief rate' component for certain jurisdictions and clarifies how tax rates are calculated when sales taxes are added or removed.

Scope change

The bill expands the applicability of higher tax rate multipliers to larger municipalities and counties by increasing the population threshold from 30,000 to 75,000 for the specific formula that includes an 'unused increment rate'.

ELIGIBILITY

Increased the population threshold for municipalities and counties eligible for a specific voter-approval tax rate formula from 30,000 to 75,000 residents.

FISCAL

Adjusted the multipliers used to calculate the base tax rate, increasing the rate for special taxing units from 1.035 to 1.08 and the rate for smaller municipalities from 1.025 to 1.035.

Added a new 'disaster relief rate' component to the voter-approval tax rate calculation for municipalities and counties with populations under 75,000.

DEFINITION

Updated the definition of 'sales tax gain rate' to apply to the following year instead of the current year, and refined the definition of 'sales tax loss rate' to include a four-quarter revenue lookback period.

TECHNICAL

Replaced the term 'last year's maintenance and operations expense' with 'last year's levy' in the no-new-revenue tax rate calculation for consistency.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Aug 6, 2025

Upper · Passed

Passed

upper

Aug 4, 2025

Upper · Passed

Committee report printed and distributed

upper

Aug 4, 2025

Upper · Passed

Reported favorably as substituted

upper

Aug 1, 2025

Upper · Passed

Vote taken in committee

upper

Aug 1, 2025

Upper · Passed

Testimony taken in committee

upper

Jul 30, 2025

Committee

Referred to Local Government

upper

Jul 30, 2025

Introduced

Read first time

upper

16 primary · 0 co-sponsors