Texas bill to slow property tax revenue growth passes Senate

A Texas bill that would restrain property tax revenue growth for larger cities and counties passed the Senate on Wednesday, sending the measure to the House, which has been unable to meet after a group of Democratic lawmakers left the state. 

The legislation, which breezed through the Republican-controlled Senate in an 18-3 vote, would tighten the state’s limit on annual growth in maintenance and operations property tax revenue to 2.5% from 3.5% unless voters approve a higher tax rate. It would apply to cities and counties with populations of 75,000 or more.

“Senate Bill 9 further reduces the rollback rate for large cities and counties to 2.5%, ensuring out-of-control local governments cannot keep driving up Texans’ tax bills,” Lt. Gov. Dan Patrick, who leads the Senate, said in a statement.  

Republican State Sen. Paul Bettencourt, a bill sponsor, said taxpayers need a break and that a 2.5% limit on cities and counties would match the limit already imposed on public school districts.

“City and county taxes are growing, at least on average, three times faster than school taxes for the average school taxpayer,” he said on the Senate floor.

Democratic State Sen. Juan “Chuy” Hinojosa said consideration of the measure, which had its first hearing before a Senate committee on Friday, should be slowed.

“I don’t think that the cities have had enough time to really digest the consequences,” he said, pointing out local governments are also dealing with unfunded state mandates and cutbacks in federal funding. 

While several bills seeking to constrain local taxes and bond issues were filed for the 30-day special legislative session that began July 21, SB 9 was flagged as a high-priority measure. Limiting property taxes was included on the session’s agenda by Republican Gov. Greg Abbott in an effort to prevent local governments from eroding $51 billion in state-funded tax relief in the current biennium.

A lack of quorum in the Republican-controlled House leaves SB 9 in limbo. A group of House Democrats left Texas on Sunday, contending that a special session intended to address July’s deadly floods and other pressing issues was instead focusing on mid-decade Congressional redistricting for President Donald Trump, who wants a five-district Republican gain.

Patrick said his chamber “will continue passing this critical taxpayer protection in every legislative session until House Democrats return from their ‘vacation’ and get back to work for the people of Texas.”

House Democrats who fled to Illinois and other states have been threatened with arrest or expulsion from office.