Texas Senate OKs Property Tax Relief Plan for Cities and Counties

On August 6, the Texas Senate approved a bill that limits property tax hikes in cities and counties with more than 75,000 residents.

Governor Greg Abbott prioritized property tax relief for the current special legislative session, which ends August 19. In June, Abbott said local governments are charging homeowners excessively high property taxes.

Texas senators voted 18-3 to pass Senate Bill 9 by Sen. Paul Bettencourt, which lowers the cap on property tax growth from 3.5% to 2.5% and require voter approval to exceed that limit. The change applies only to the maintenance and operations portion of the tax rate. New construction added to tax rolls and any city or county with fewer than 75,000 residents would not be affected by the bill.

Bettencourt said county and city property taxes are rising about 3% faster than school district taxes, and in many areas, their combined total is higher than school tax bills. He added that lowering tax rates could attract more businesses to Texas, boosting property tax revenue through economic growth.

However, the bill’s future in the state House is uncertain, as Democratic members have left Texas to block a GOP-led redistricting plan aimed at securing more Republican seats in next year’s midterms.

Earlier this year, Republican lawmakers committed $51 billion over the next two years to cut school district property taxes and, at Gov. Greg Abbott’s urging, are also seeking ways to lower local taxes during a 30-day special session filled with other conservative priorities.

The bill now moves to the House, where it awaits action amid the Democratic quorum break. Some top Republicans support it, including State Rep. Morgan Meyer of University Park, who chairs the House’s tax-writing committee and filed a similar bill earlier this week.