As part of the first 30-day special session of 2025, property tax relief is once again on the agenda—and rightly so. Texans continue to struggle under the weight of one of the highest property tax burdens in the nation. Governor Abbott’s call for the special session was clear:
“CUT PROPERTY TAXES: Legislation reducing the property tax burden on Texans and legislation imposing spending limits on entities authorized to impose property taxes.”
Senate Bill 9 (SB9), filed by Sen. Paul Bettencourt, is the Legislature’s first response. The bill proposes to lower the voter-approval tax rate multiplier from 1.035 to 1.025 for most taxing units—reducing the amount local governments can increase property tax revenues without voter approval from 3.5% to 2.5% annually.
To be fair, that’s an improvement, and it may help slow the growth of property tax bills. Under a 3.5% growth rate, a tax levy doubles in about 21 years. At 2.5%, it would take 28 years.
But SB 9 does NOT cut taxes. It does not “reduce the property tax burden on texans,” as specifically called for by the Governor. Neither does it close key loopholes, or impose new spending limits on local governments, also something specifically called for by Governor Abbott. If this is the only bill passed this session, it will fall short of what Texans were promised—and what they truly need.
What SB9 Actually Does
- Reduces the M&O property tax voter-approval multiplier from 3.5% to 2.5% for many local taxing units.
- Leaves in place higher multipliers for:
- Special taxing units, which can still grow M&O tax revenue by 8% annually.
- Local governments under 30,000 population, which retain the 3.5% cap.
- Special taxing units, which can still grow M&O tax revenue by 8% annually.
- Preserves carveouts for disaster exceptions, new property growth, and “unused increment rates.”
In other words, the same structural loopholes that local governments have used to erode previous relief efforts remain intact.
Texans for Fiscal Responsibility has long warned that unless the Legislature imposes strict local spending limits and voter control over all property tax increases, meaningful relief efforts passed by the Legislature will continue to be undermined. We’ve seen this repeatedly since the 2019 property tax reforms.
The Bigger Picture
Texas is in a strong position to go further. The Comptroller has reported $3.1 billion available for additional tax relief, and the state’s Rainy Day Fund is projected to exceed $28 billion. There is also plenty of the unnecessary spending in the budget that could be cut after lawmakers passed a 2026–27 budget that increased state spending by 40% over just two biennia.
At the same time, local property tax levies have grown by nearly 90% over the past decade, while population and inflation rose less than 50%. This gap reflects what we’ve long documented: local overspending is the primary driver of rising property tax burdens.
Why Broader Reform Is Still Needed
Property taxes don’t just impact homeowners. They hit renters (through higher housing costs), small businesses, and first-time buyers, like young families, trying to enter the market. Many Texans face tax bills today that exceed their original mortgage payments.
Yet these burdens are often left out of policy models and budget tables. Texans for Fiscal Responsibility believes these harms are just as real—and should be central to any reform effort.
What Must Still Be Done
To deliver real, lasting relief, and actually deliver on Governor Abbott’s bold special session agenda, lawmakers should:
- Lower the voter-approval multiplier to 1.000 (0%) for all taxing units, requiring any revenue growth to be approved by voters.
- Close carveouts for disaster zones, new property, and small jurisdictions.
- Require all tax elections to be held on uniform election dates in November to ensure transparency and broad participation.
- Impose strict local spending limits tied to a maximum of population growth plus inflation, or less.
- Use state surpluses to fully eliminate school district M&O taxes as quickly as possible.
Conclusion
SB9 may be an incremental improvement—but it won’t stop the drivers of rising property taxes or fulfill the full promise of relief and the Governor’s special session call. Without additional legislation to address spending growth and revenue loopholes, local governments will continue to outpace and outmaneuver state-level reforms.
Texans for Fiscal Responsibility remains committed to holding lawmakers accountable—not just for what they pass, but also for what they fail to fix. Texans deserve to own their homes—not rent them back from the government. We call on the Legislature to finish the job before the special session ends.
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