Texas lawmakers return to Austin on July 21. The Capitol doors open at noon. Governor Greg Abbott has set the agenda. Property taxes are near the top. Two items stand out. One calls for legislation to reduce the tax burden. The other aims to cap spending by entities that levy property taxes. Cities. Counties. School districts. All in the crosshairs.
The session runs thirty days. Abbott controls the list. No other topics can be added unless he says so. Property tax reform joins seventeen other items. Flood recovery. THC regulation. Redistricting. Judicial restructuring. All stacked. But tax relief is front and center.
Representative Brian Harrison filed ten bills tied to property taxes. One proposes a constitutional amendment to abolish ad valorem taxes entirely. Another calls for a 40% cut funded by $90 billion in budget reductions. Harrison says the regular session failed to deliver. He wants immediate action.
Senate Bill 4, passed earlier this year, raised the homestead exemption from $100,000 to $140,000. Senate Bill 23 added $50,000 more for seniors and disabled Texans. Those changes take effect January 1, 2025. But Abbott wants more. He wants structural reform. He wants spending limits.
House Bill 9, also passed, raised the exemption for business personal property from $2,500 to $125,000. That bill kicks in January 1, 2026. It includes aggregation rules. Related entities must combine assets. No stacking exemptions. Appraisal districts must coordinate across counties. Enforcement will be tight.
The governor’s call includes language to “impose spending limits on entities authorized to impose property taxes.” That means caps. That means audits. That means budget ceilings tied to inflation or population growth. No formal bill text yet. But drafts are circulating.
The Texas Municipal League is watching closely. Cities rely on property taxes to fund police, fire, water, and roads. Any cap hits those budgets. Counties face similar pressure. School districts already operate under state formulas. New limits could trigger layoffs or service cuts.
Abbott’s team says the goal is discipline. No more unchecked growth. No more runaway valuations. The state wants control. The voters want relief. The legislature has thirty days to deliver.
Sources:
https://www.cbsnews.com/texas/news/texas-special-session-2025-agenda/
https://gilldenson.com/2025-texas-legislative-session-changes-in-property-tax-laws/
https://gov.texas.gov/news/post/governor-abbott-announces-special-session-agenda-
