Bill > HB4407

This bill provides comprehensive property tax relief and reform through several key provisions. First, for the 2025-2026 school year, the bill reduces school district maximum compressed tax rates by $0.15, with a mechanism to ensure no district's rate falls below 90% of another district's rate. Second, the bill modifies property tax escrow account rules by requiring collectors to enter escrow contracts at a property owner's request, removing previous discretionary language. Third, the bill significantly expands the limitation on property value increases, changing it from applying only to residence homesteads to applying more broadly to real property, reducing the maximum annual value increase from 10% to 5%, and establishing new rules for how and when these limitations apply, including provisions for property transfers between spouses and multiple property owners. The bill also removes references to a previous "circuit breaker" limitation and makes technical changes to various related tax code sections. The bill's effectiveness is partially contingent on a constitutional amendment, with most provisions set to take effect on September 1, 2025, or January 1, 2026, depending on the specific provision and potential voter approval of the related constitutional amendment.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4407