HB 211 changes how Texas taxing units (like school districts and counties) must obtain voter approval to raise property tax rates above current levels. It requires a 60% approval threshold (instead of a simple majority) in elections held on the November uniform election date, with elections for rate increases no longer allowed as emergency votes. If approved, the tax rate becomes final, and governing bodies cannot disapprove it or the budget based solely on that rate. The bill also removes specific Tax Code restrictions (like Section 26.07) that would otherwise limit the approved rate's application for that tax year.
HB 178 requires non-school district political subdivisions (like cities, counties, and special districts) that exceed the "no-new-revenue tax rate" for five consecutive tax years to conduct an independent efficiency audit. The audit examines fiscal management, resource use, and operational efficiency, with the political subdivision covering all costs. Exceptions apply for areas declared disaster zones under state law, allowing voter approval to bypass the audit during a two-year window. Results must be discussed in an open meeting and posted online within 30 days of the meeting, and audits must be completed within three months of hiring an auditor.
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 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.
HB 49 restricts how local governments in Texas can use property tax revenue from specific elections. It prohibits cities, counties, and local government corporations from using increased maintenance and operations tax revenue (derived from certain property tax elections) to repay public securities like bonds. The bill amends both the Tax Code and Government Code to explicitly ban dedicating or pledging this property tax revenue for debt payments. This applies only to public securities issued after the bill's effective date.
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.
HB 220 requires local taxing units (like cities, counties, or school districts) to obtain higher approval thresholds for certain tax and bond decisions. Specifically, it mandates that governing bodies must secure at least 60% approval to issue general obligation bonds and 80% approval to set property tax rates exceeding previously voter-approved levels. The bill applies only to tax years beginning after the law takes effect (about 90 days after the legislative session ends). This changes existing procedures by raising the bar for local governments to increase taxes or borrow funds without direct voter approval.
HB 249, titled "Relating to a limitation on increases in the appraised value of real property for ad valorem tax purposes," aims to restrict how much a property's taxable value can increase annually for local tax assessments. The bill would directly affect property owners by potentially limiting annual tax increases tied to rising property appraisals. However, the full text of the bill is currently unavailable (noted as "coming soon" with only a PDF placeholder), and no specific mechanisms, thresholds, or affected property types are described in the provided context. Without access to the bill's actual provisions, a detailed summary of its policy changes cannot be provided.
HJR 14 proposes a constitutional amendment to end ad valorem property taxes in Texas. It would prohibit local governments from levying these taxes on real or personal property after January 1, 2031, and require the state to guarantee repayment of school district bonds issued before November 4, 2025, that were secured by such taxes. The amendment must be approved by voters in the November 4, 2025 election. This directly affects all Texas counties, cities, and school districts currently using ad valorem taxes for funding.
