HB 39 amends Texas law to adjust how school districts calculate property values for state funding. It directs that taxable value for school finance purposes must exclude certain homestead exemptions, including those under Tax Code Sections 11.13(b), (c), and (n), as well as captured appraised value in designated reinvestment zones. This change directly affects Texas public school districts by altering the property value base used to determine state funding allocations. The bill modifies Education Code Section 7.062(c) and Government Code Section 403.302(d) to implement this adjustment in funding calculations.
SB 40 would exempt property owned by qualifying nonprofits in Texas counties with 3.3 million+ residents from property taxes. The exemption applies to nonprofits using land for agriculture promotion, youth programs, and community education - specifically those organized exclusively for charitable, educational, or scientific purposes under state law. It covers both real and personal property but excludes for-profit leaseholders of such property. The law takes effect January 1, 2026, applying only to tax years beginning after that date.
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.
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.
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.
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.
HB 219 limits annual increases in the appraised value used to calculate property taxes for Texas primary residences (homesteads). It caps yearly increases at either the previous year's market value or a formula based on 10% of last year's value plus last year's value plus new improvements. The bill directly affects homeowners with homestead properties by preventing rapid tax increases tied to rising property values. It would take effect January 1, 2027, but only if voters approve a related constitutional amendment in 2025. If the amendment fails, the bill has no effect.
HB 100 directs Texas to use federal border security funds (from Public Law 119-21) to issue one-time cash payments to qualifying Texas homestead property owners. The comptroller would deduct up to $28 million for administrative costs from funds received by April 30, 2026, then divide the remainder equally among all households with a homestead exemption as of January 1, 2026. Each eligible household would receive a single payment by August 1, 2026, with the rebate treated as non-taxable income that won’t affect state benefit eligibility. Any federal funds received after May 1, 2026, would instead be deposited into the state treasury for school district property tax rate compression.
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 changes how Texas property tax collectors handle overdue payments. It requires tax collectors to apply payments first to the actual tax amount owed, not penalties or interest, unless the property owner specifies otherwise in writing. It also caps total penalties and interest on delinquent taxes at $500, regardless of what would otherwise be calculated under existing law. These changes apply only to payments received after the bill becomes effective.
