TX
Texas House Bill HB4407

Texas 2025 - 89th Regular

Texas House Bill HB4407

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

Impact

The enactment of HB4407 is likely to affect various components of the Texas Tax Code, particularly those related to property appraisal and taxation. It establishes a new maximum compressed tax rate for school districts, which is intended to maintain equity across districts and prevent disproportionate increases in property tax rates. Additionally, it allows for property owners to create escrow accounts for tax payments, offering a structured way to manage those financial obligations. Another notable aspect of the bill is the introduction of limitations on the increase in property values for tax purposes, aimed at providing stability for homeowners against rapid market fluctuations.

Summary

House Bill 4407, known as the Property Tax Relief Act, introduces significant revisions to Texas's property tax framework primarily aimed at reducing the financial burden on property owners through adjustments in the public school finance system. The bill specifically establishes parameters for school district tax rate compression for the 2025-2026 academic year, with the intent to lower tax rates by $0.15 per $100 of valuation, thereby easing the overall property tax load on citizens. This gradual introduction of tax rate adjustments reflects an effort to make property taxes more manageable for residential areas struggling with high taxes amid fluctuating property values.

Contention

However, the bill is not without controversy. Critics argue that while the tax rate compression is beneficial in theory, it may lead to decreased funding for schools, as the initial tax revenue may fall short if property valuations do not align with projections. Additionally, amendments that stipulate conditions under which appraisal values can be raised may generate pushback from local appraisal boards. The bill's effectiveness hinges on the broader structure of educational funding in Texas and public perception regarding the impact of potential reductions in school funding against the backdrop of rising real estate values.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 1. General Provisions
    • Section: 12
    • Section: New Section

Government Code

  • Chapter 403. Comptroller Of Public Accounts
    • Section: 302

Education Code

  • Chapter 48. Foundation School Program
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX HB2

Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

TX SB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.

TX HB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.

TX SB1

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB26

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX HB62

Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.

TX HB38

Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.

TX HB3336

Relating to a limitation on increases in the appraised value of commercial real property and single-family rental property for ad valorem tax purposes.

TX HB28

Relating to a limitation on increases in the appraised value of commercial real property and single-family rental property for ad valorem tax purposes.

Similar Bills

TX HB2

Relating to providing property tax relief through the public school finance system and property tax appraisal and administration.

TX SB3

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.

TX HB62

Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.

TX SB2

Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.

TX SB1

Relating to a reduction in the maximum compressed tax rate of a school district and additional state aid for certain school districts impacted by compression, an increase in the amount of certain exemptions from ad valorem taxation by a school district applicable to residence homesteads, an adjustment in the amount of the limitation on school district ad valorem taxes imposed on the residence homesteads of the elderly or disabled to reflect increases in the exemption amounts, and the protection of school districts against the resulting loss in local revenue.

TX SB26

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.

TX SB1

Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.