TexasMany Texas local governments would use 2.5% in property tax calculations
Texas local governments would use set growth factors to calculate property tax rates tied to voter approval, with separate rules for debt and disasters.
What it does
Many local governments would use a 2.5% growth factor for everyday operations in their voter-approval property tax calculation. Cities and counties with fewer than 75,000 residents would use 3.5%, unless they are special taxing units, which would use 8%.
Governments that qualify under separate disaster rules could use a property tax calculation that adds disaster relief. The result could not exceed the rate calculated for a special taxing unit.
Argument forThe 2.5% growth factor could help limit the operating-tax benchmark that covered governments use when setting property taxes.
Argument againstA 2.5% growth factor could leave covered governments less room in the tax benchmark to cover rising costs for everyday services.
More detail
Local governments would use set growth factors to calculate their voter-approval property tax rates. The 2.5% factor would cover governments outside the special taxing unit category, except cities and counties with fewer than 75,000 residents. Those smaller cities and counties would use 3.5%. Special taxing units would use an 8% growth factor. The formulas add a separate rate for debt payments. Governments outside the special category also include an allowance for unused tax-rate growth. Separate formulas account for governments starting, collecting, or ending an additional sales tax. The proposal specified January 1, 2026, as its effective date and would apply only to property tax years beginning on or after that date.
Governments that qualify under separate disaster rules could direct staff to calculate a voter-approval property tax rate using the disaster formula. This option would apply only to governments allowed to use the calculation under separate disaster eligibility rules. Staff would use the lower of the rate calculated for a special taxing unit and the applicable rate with disaster relief added. The disaster formula would use 3.5% for cities and counties with fewer than 75,000 residents that are not special taxing units. Other governments would use 2.5%. The proposal would apply this formula to property tax years beginning on or after its stated effective date of January 1, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Sep 2Reason for vote recorded in JournalLatest
- Vote recorded other. Result: fail.Lower
- Sep 2Statement(s) of vote recorded in Journal
- Sep 2Record vote
- Sep 2House refuses to adopt conference comm. rept.
- Aug 28Conf. Comm. Report distributed
- Aug 28Conference committee report filedMinor
- Aug 27House appoints conferees-reported
- Aug 27House grants request for conf comm-reported
- Aug 27House appoints conferees
- Aug 27House grants request for conference committee
- Aug 27Senate appoints conferees-reported
- Aug 27Senate requests conference committee-reported
- Aug 27Senate refuses to concur-reported
- Aug 26Senate appoints conferees
- Aug 26Senate requests conference committee
- Aug 26Senate refuses to concur
- Aug 26Read
- Aug 26House amendment(s) laid before the SenateMinor
- Aug 26House passage as amended reportedMajor
- Aug 25Reason for vote recorded in Journal
- Vote recorded adoption of amendment. Result: pass.Lower
- Vote recorded table Amendment No. 2. Result: fail.Lower
- Vote recorded passage. Result: pass.Lower
- Vote recorded passage. Result: pass.Lower
- Vote recorded passage. Result: pass.Lower
- Aug 25Statement(s) of vote recorded in Journal
- Aug 25Record vote
- Aug 25PassedPassed House
- Aug 25Statement(s) of vote recorded in Journal
- Aug 25Record vote
- Aug 25Amendment fails of adoptionMinor
- Aug 25Read 3rd timeMinor
- Aug 25Statement(s) of vote recorded in Journal
- Aug 25Record vote
- Aug 25Passed to 3rd reading as amendedMajor
- Aug 25Amendment withdrawnMajor
- Aug 25Statement(s) of vote recorded in Journal
- Aug 25Record vote
- Aug 25AmendedMajor
- Aug 25AmendedMajor
- Aug 25Statement(s) of vote recorded in Journal
- Aug 25Record vote
- Aug 25Motion to table fails
- Aug 25Amendment(s) offeredMinor
- Aug 25AmendedMajor
- Aug 25Read 2nd timeMinor
- Aug 25Placed on Major State Calendar
- Aug 24Considered in Calendars
- Aug 24Committee report sent to Calendars
- Aug 22Committee report distributed
- Aug 22Comte report filed with Committee CoordinatorMinor
- Aug 22Reported favorably w/o amendment(s)Minor
- Aug 22Testimony taken/registration(s) recorded in committee
- Aug 22Considered in public hearing
- Aug 20Referred to Ways & MeansMinor
- Aug 20Read first timeMinor
- Aug 20Received from the SenateMinor
- Aug 19Reported engrossed
- Vote recorded final passage. Result: pass.Upper
- Aug 19Reason for vote recorded in Journal
- Aug 19Record vote
- Aug 19PassedPassed Senate
- Aug 19Read 3rd timeMinor
- Aug 19Laid before the SenateMinor
- Aug 18Record vote
- Vote recorded passage. Result: pass.Upper
- Vote recorded passage to engrossment. Result: pass.Upper
- Aug 18Read 2nd time & passed to engrossmentMinor
- Aug 18Record vote
- Aug 18Rules suspended-Regular order of business
- Aug 15Committee report printed and distributed
- Aug 15Reported favorably w/o amendmentsMinor
- Aug 15Vote taken in committee
- Aug 15Considered in public hearing
- Aug 15Scheduled for public hearing on . . .
- Aug 15Record vote
- Aug 15Posting rule suspended
- Aug 15Referred to FinanceMinor
- Aug 15Read first timeMinor
- Aug 15FiledMinor
- Aug 15Received by the Secretary of the SenateIntroduced
- Sep 2Reason for vote recorded in JournalLatest
Taxes & Budget