Bill > HB4968

This bill allows certain large counties (defined as having a population of at least 2.1 million and containing at least two cities with 350,000 or more residents) to substitute a one percent sales and use tax for all or part of their property taxes through a local election. The county commissioners court can call an election where voters will decide whether to adopt or abolish this sales tax, which would be used specifically for property tax reduction. If approved, the tax would take effect on the next January 1st that is at least six months after the election results are reported to the state comptroller. The ballot language will clearly state the purpose is to reduce the county property tax rate. The bill modifies existing tax code to include this new sales and use tax category, and specifies that any revenue generated from this tax will be considered additional sales and use tax revenue. The provisions of this bill are set to take effect on September 1, 2025, with specific tax code amendments becoming effective on January 1, 2026. This legislation provides an alternative mechanism for counties to potentially lower property tax burdens by implementing a dedicated sales tax.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4968