Ways and Means

SB 10 amends Texas tax code to change how local governments calculate two key tax rates requiring voter approval. It defines new formulas for the "no-new-revenue tax rate" (based on property value changes) and "voter-approval tax rate" (which adjusts for maintenance, debt, and unused tax increments). The bill specifies different multipliers for different taxing units: 1.08 for special districts, 1.035 for small cities/counties (under 75,000 population), and 1.025 for other units. This directly affects all Texas taxing units - like cities, counties, and special districts - that need voter approval for tax increases.

HB 21 modifies Texas property tax penalties and interest rates for late payments. It reduces the initial penalty from 6% to 3% for the first month a payment is late, then 0.5% per month (down from 1%) for each additional month. For taxes delinquent on July 1, the total penalty drops from 12% to 6%. The bill also halves the interest rate to 0.5% per month and applies only to penalties accruing after its effective date.

HB 183 would create a property tax exemption for the full appraised value of primary residences owned by Texas homeowners aged 65 or older who have held this exemption for at least 10 consecutive years. Surviving spouses aged 55 or older who maintained the home as their primary residence after their spouse’s death (if the deceased spouse qualified for the exemption) would also qualify. The exemption applies to the entire tax year starting when eligibility begins. This bill requires voter approval of a constitutional amendment (H.J.R. 133) in 2025 to take effect.

This bill proposes a constitutional amendment that would allow the Texas legislature to cap the annual increase in property tax appraisals for homesteads (primary residences) at 105% of the previous year's value, rather than using full market value. It directly affects homeowners with homestead properties by potentially limiting how much their property taxes could rise each year. The key provision would let the legislature set this 105% cap through general law, with the limitation taking effect the year after the law is enacted and expiring if the owner sells the property or no longer qualifies for homestead exemption. The amendment requires voter approval in a 2026 election. It does not change current tax rates but modifies how appraised values are calculated for tax purposes.

HB 85 changes the voter approval requirement for property tax increases in Texas. It requires a two-thirds majority (instead of a simple majority) of votes cast in an election to approve a tax rate exceeding a taxing unit’s current voter-approved rate. The bill mandates that election notices clearly show three rates: the proposed tax rate, the "no-new-revenue" rate (same as previous year), and the "voter-approval" rate (highest rate without an election). This directly affects cities, school districts, and other local taxing units seeking to raise property taxes beyond their existing approved limit. The change aims to strengthen voter control over significant tax hikes.