Transcript Highlights:

• Excuse me, the old rollback rate, but now we call it the voter-approved rate.
• tax rates at the voter-approval tax rate, and how often voters have approved tax rates in excess of
• the voter-approval rate.
• rate, and 19% of cities approved by voters tax rates above the voter-approval rate.
• counties had tax rates above the voter-approval rate that were approved by voters.

Bills: SB9

Keywords: property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap, tax rollback, tax levy, maintenance and operations, debt rate, disaster relief rate, Texas Legislature, local taxing unit

Summary: The Senate Committee on Local Government met to hear Senate Bill 9, which would lower the voter-approval tax rate for certain local taxing units from 3.5% to 2.5%. Sen. Bettencourt, the bill author, argued the change would continue the state’s property tax reforms begun in 2019, slow local levy growth, and give voters more say over larger tax increases. He and supporters cited data showing property tax levies have grown faster than population plus inflation, and said the bill would help protect taxpayers while preserving the state’s broader investments in school tax relief, water, rural law enforcement, and ambulance funding. Supporters included the Texas Taxpayers and Research Association, the Texas Association of Business, the Texas Public Policy Foundation, and the Texas Association of Manufacturers. They said the bill would improve transparency, encourage more disciplined budgeting, and create certainty for homeowners and businesses. They argued that lower tax-rate growth would help attract and retain employers and investment, and that voters would still be able to approve higher rates when needed. Local officials and other opponents said the bill would constrain cities and counties facing rapid growth, inflation, infrastructure needs, and public safety costs. Testimony from county judges, city finance officials, firefighters, and urban county representatives emphasized pressures from jail operations, roads, water, EMS, police and fire staffing, and unfunded mandates. Several witnesses asked for carve-outs or exemptions for public safety and disaster-related costs, warning that a one-size-fits-all cap could force service cuts or shift costs elsewhere. The committee heard extensive questioning but no final vote or disposition on the bill was taken in the portion provided.

Transcript Highlights:

• resources be used first for the purposes... ...for which they were collected, which is management and maintenance
• And then you're telling me that the Public Utilities Commission sets a rental rate essentially for that
• It's just the PUC sets a rate. They pay the PUC, and I'm calling it rent. Is that a fair...
• I did want to clarify that the cable companies do have that rate set by the PUC of 5%, but the telecom
• companies' rate is set by the municipality, so there is that difference.

Bills: HB3713, HB3953, HB4055, HB4272

Keywords: telecommunications, local exchange companies, universal service fund, rate maintenance, business expansion, broadband access, internet service, multiunit residential properties, urban areas, affordability programs, fiber-optic cables, public land, construction permits, environmental impact, notification requirements, municipal projects, infrastructure, facility relocation, public right-of-way, 1184

Transcript Highlights:

• Excuse me, the old rollback rate, but now we call it the voter-approved rate.
• Draw attention to tax rates.
• Tax rates matter.
• no new revenue rate.
• rate.

Bills: SB9, SB 9

Keywords: property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap, tax rollback, tax levy, maintenance and operations, debt rate, disaster relief rate, Texas Legislature, local taxing unit, school assessment

Transcript Highlights:

• It simply reduces the rollback rate, a.k.a. now the voter-approved tax rate, for taxing jurisdictions
• It simply reduces the rollback rate, a.k.a. now the voter-approved tax rate, for taxing jurisdictions

Bills: SB2, SB3, SB5, SB9, SB10, SB14, SB16, SB34, SB18

Keywords: flooding, public safety, outdoor warning sirens, disaster preparedness, emergency response, flood warning, outdoor sirens, local government, safety measures, flood management, emergency preparedness, municipal safety, disaster response, disaster relief, emergency funding, Meteorological forecasting, local government assistance, training facilities, hemp regulation, consumable products

Summary: The Senate Committee on Finance met in the second special session and considered a series of bills, mostly related to flood response, water infrastructure, taxation, school accountability, property fraud, and legislative procedure. Senator Zaffirini presented SB 18 on TCEQ permit exemptions for certain erosion, floodwater, and sediment control dams or reservoirs; Senator Perry presented SB 2 on flood relief preparedness, SB 14 on credit impact fees and water supply/conservation incentives, and SB 5 on Hill Country relief funding; Senator Bettencourt presented SB 3 on early warning flood sirens, SB 9 on replacing STAAR with three annual tests and strengthening A-F accountability, and SB 10 on lowering the rollback tax rate from 3.5% to 2.5%; Senator West presented SB 16 on property transaction ID requirements and new real property theft/fraud offenses; and Chair Huffman laid out SB 34, which changes legislative witness immunity rules from transactional immunity to testimonial immunity consistent with federal law. The committee also heard brief explanations that several bills were the same as versions previously passed by the Senate or committee, and there was limited public testimony, with no witnesses on most bills and only position cards on SB 16. Senator West raised a concern on SB 10 about a possible carve-out for police pay raises, but Senator Bettencourt said no change would be made at that time. For SB 34, Chair Huffman explained the bill would still allow compelled testimony before the legislature but would no longer provide blanket immunity, while preserving the right to counsel. The committee voted favorably on all bills considered. SB 18, SB 2, SB 14, SB 3, SB 16, SB 5, and SB 34 were reported out unanimously or near-unanimously, while SB 9 passed 10-1 and SB 10 passed 8-3. At the end of the meeting, Senator West requested to be shown voting nay on SB 9, and the chair granted unanimous consent. The committee then recessed subject to the call of the chair.

Transcript Highlights:

• SB 1277 is a local bill extending the reauthorization period of the street maintenance.
• This bill proposes... ...extending the reauthorization interval for the municipal street maintenance
• above the voter approval tax rate for a specific purpose.
• Built into that bill was what we call an unused increment rate.
• That rate allowed a taxing entity that adopted a rate below the cutoff to... ...be able to bank the difference

Bills: SB1277, SB1531, SB2452, SB2520, SB2521, SB2529, SB2538, SB2539, SB2541, SB2873

Keywords: municipal sales tax, street maintenance, local option tax, Tax Code Chapter 327, sales and use tax, street repair, sidewalk maintenance, water infrastructure, wastewater system, stormwater system, local election, ballot language, reauthorization, municipal finance, infrastructure funding, Texas municipalities, street and sidewalk tax, special district tax, public works, property tax

Bills: SB15, SB9, SB7, SB1, SB2, SB67, SB15, SB9, SB7

Keywords: real property, fraud, theft, elderly, disabled, statute of limitations, criminal offense, property rights, property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap

Transcript Highlights:

• the voter approval tax rate, previously known as the rollback rate, for cities and counties from a certain
• Lowers the rollback of the old rollback rate, now the voter-approved rate, to two and a half percent.
• Affect debt rate setting across the state.
• current tax rates from 3.5% to 2.5% or less.
• They would allow them to increase the tax rate.

Bills: SB15, SB9, SB7, SB1, SB2, SB67, SB15, SB9, SB7

Keywords: real property, fraud, theft, elderly, disabled, statute of limitations, criminal offense, property rights, property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap

Transcript Highlights:

• Texas' current rate is $5,000.
• Senate Bill 1453 does permit a taxing entity to adopt an INS rate higher than the minimum tax rate if
• there is a motion that states the proposed rate, states the difference between those rates, and describes
• The effect of keeping rates stagnant while values soar is higher taxes.
• Adjusting their INS tax rates.

Bills: SB263, SB467, SB850, SB1030, SB1352, SB1453, SB2064, SB2206, SB2779, SJR84

Keywords: SB 263, Texas franchise tax, cost of goods sold, COGS, broadcasters, television broadcasting, radio broadcasting, media tax, broadcast license, FCC, 47 C.F.R. Part 73, 47 C.F.R. Part 74, film production, television production, tax deduction, margin tax, Texas Tax Code, depreciation, amortization, broadcast rights

Transcript Highlights:

• We appreciate and recognize the rate compression policies in place today and lowering the rate for all
• Our, our total tax rate, including road and bridge, INS, and maintenance and operations, is right at
• Sure, so we have the voter approved rate, which is the highest rate that you could approve without a,
• to keep our property tax rate low.
• But what you're saying is right, that yes, tax rates go up and then that tax rate is paid by everyone

Bills: HB8, HB9, HJR1, HB 22

Keywords: HB 8, Texas public school accountability, school accountability, public school transparency, STAAR, state assessments, instructionally supportive assessment program, Student Success Tool, Texas Education Agency, TEA, accountability ratings, A-F ratings, through-year assessment, benchmark testing, norm-referenced assessment, college career military readiness, CCMR, local accountability plan, school district performance, campus turnaround

Transcript Highlights:

• We appreciate and recognize the rate compression policy. and lowering the rate for all taxpayers helps
• What's your all's tax rate?
• Our total tax rate included in road and bridge, INS, and maintenance and operations is right at 46 cents
• to keep our property tax rate low.
• If rates go up, if they're not lowered, somebody's going to pay. for that higher rate.

Bills: HB8, HB9, HJR1, HB22, HB8, HB9, HJR1, HB22

Keywords: HB 8, school finance, compressed tax rate, maximum compressed tax rate, MCR, PYMCR, property tax, school district taxes, Education Code, Tax Code, state aid, school funding formula, local school taxes, Texas school finance, tax rate compression, public education funding, ad valorem tax, tangible personal property, income-producing property, business personal property

Transcript Highlights:

• And definitely outside of a rate case, there is a rate case expense rider.
• They could do these update riders in between the rate cases, and then they would have a rate case.
• Part of why they get a 9% to 10% rate of return built into their rates is to compensate them for that
• update or a base rate proceeding.
• Water rate cases are not as expensive as the electric rate cases.

Bills: SB483, SB522, SB783, SB1239, SB1254, SB1255, SB1259, SB1341, SB1664, SB1762, SB1856, SB1877, SB1977

Keywords: utility, proprietary information, customer data, data protection, electric service, customer information, emergency communication, electric utility, privacy, certification, public accountants, interstate licensing, accounting, regulatory amendment, energy efficiency, construction regulations, building codes, Texas, sustainability, cost-effectiveness

Bills: HB 4, HB 1, HB 2, HB 18, HB 19, HB 20

Keywords: appropriations, funding, budget, state finance, public services, public education, teacher compensation, certification, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, rural health, hospital funding, healthcare access, mental health services, financial stability

Bills: HB 4, HB 1, HB 2, HB 18, HB 19, HB 20

Keywords: appropriations, funding, budget, state finance, public services, public education, teacher compensation, certification, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, rural health, hospital funding, healthcare access, mental health services, financial stability

Bills: HB 1, HB 2, HB 18, HB 19, HB 20, HB 4

Keywords: appropriations, funding, budget, state finance, public services, public education, teacher compensation, certification, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, rural health, hospital funding, healthcare access, mental health services, financial stability

Transcript Highlights:

• It does permit a taxing entity to adopt an interest and sinking taxing rate higher than the minimum rate
• If there is a motion that states the minimum interest and sinking tax rate, states the proposed rate,
• from 27 cents to 15 cents, a 46% reduction in just one rate.
• The inverse relationship of value and rate is key, and this will restrain interest and sinking tax rates
• The inverse relationship of value and rate is key, and this will restrain interest and sinking tax rates

Bills: SB32, SB464, SB996, SB1163, SB1173, SB1277, SB1452, SB1453, SB1548, SB1882, SB1883, SB2016

Keywords: ad valorem taxation, tax exemption, franchise tax credit, income production, personal property, SB 464, school buffer zone, tobacco retailer, vape shop, e-cigarette, vaping, nicotine, tobacco products, retail permit, comptroller, Class A misdemeanor, school proximity, youth access, public school, private school

Summary: The Senate Local Government Committee heard several bills by Senator Bettencourt focused on property tax and local government accountability. SB 32 would provide about $700 million in business tax relief by raising the business personal property exemption from $2,500 to $25,000 and continuing a 20% franchise tax credit for inventory taxes paid. Witnesses from NFIB, the Texas Retailers Association, and Texas Realtors supported the bill, saying business personal property and inventory taxes are burdensome and especially hard on small businesses. After no opposition testimony, SB 32 was left pending. The committee also heard SB 1453, which would change how interest and sinking tax rates are calculated by using only the minimum debt service required under bond schedules, while still allowing a higher rate with a 60% governing body vote and a public explanation. A witness from the Texas Taxpayers and Research Association supported the bill as a way to keep debt rates from rising as property values increase and to preserve tax relief. The bill was left pending after testimony. SB 1883 would tighten rules on local impact fees by requiring 60 days of public availability for capital improvement plans and land use assumptions, raising the approval threshold for adopting impact fees from a simple majority to two-thirds, limiting how often fees can be increased, and expanding notice requirements. Builders and developers testified in support, arguing that impact fees are often poorly reviewed, lack accountability, and are passed on to homebuyers, worsening housing affordability. Committee members discussed adding audit provisions and questioned the lack of city testimony. The bill was left pending with subcommittee action. SB 1452 would require a voter election to decide whether a municipal management district continues to exist, with dissolution if voters reject it; supporters said it would add accountability, while others noted some districts provide essential services and infrastructure. The committee heard testimony from district representatives and builders, then left SB 1452 pending before recessing.

Transcript Highlights:

• It's a local bill that extends the reauthorization period for the street maintenance tax for the city
• The street maintenance tax, or SMR is, a special sales tax in the tax code used by some cities to repair
• Under current law, street maintenance tax, or SMR, expires for most cities 4 years after it was approved
• This is this, the citizens of Koppel have reauthorized the quarter cent sales and maintenance tax by

Bills: SB 32, SB 464, SB 996, SB 1163, SB 1173, SB 1277, SB 1452, SB 1453, SB 1548, SB 1882, SB 1883, SB 2016

Keywords: ad valorem taxation, tax exemption, franchise tax credit, income production, personal property, SB 464, school buffer zone, tobacco retailer, vape shop, e-cigarette, vaping, nicotine, tobacco products, retail permit, comptroller, Class A misdemeanor, school proximity, youth access, public school, private school

Transcript Highlights:

• the Texas Municipal retirement System with greater flexibility in determining employee contribution rates
• Under current law, a city may set member contribution rates at 5%, 6%, or 7% of employee compensation
• It does not mandate an increase in contribution rates.
• Municipalities that adopted different contribution rates for different departments prior to September
• adds the option that is completely voluntarily voluntary by municipality to add an 8% contribution rate

Bills: HB104

Keywords: property tax, ad valorem tax, tax rate election, voter-approval tax rate, no-new-revenue tax rate, de minimis rate, local government, special district, tax increase, tax notice, public hearing, tax code, Health and Safety Code, Texas property taxes, taxing unit, election threshold, two-thirds vote, majority vote, budget approval

Transcript Highlights:

• of return, uh, and the interest rates on the ESF and I understand the importance of liquidity, but I
• A $5 billion investment at that rate earns about $210 million a year.
• Their average rate of return has been 8%.
• What's the, what's the rate of return on that?
• Uh, filing it with the rates as an expense or, uh, filing it, uh, with individual policyholders.

Bills: HB104

Keywords: property tax, ad valorem tax, tax rate election, voter-approval tax rate, no-new-revenue tax rate, de minimis rate, local government, special district, tax increase, tax notice, public hearing, tax code, Health and Safety Code, Texas property taxes, taxing unit, election threshold, two-thirds vote, majority vote, budget approval

Transcript Highlights:

• And definitely outside of a rate case, there is a rate case expense rider.
• And definitely outside of a rate case, there is a rate case expense rider.
• And definitely outside of a rate case, there is a rate case expense rider.
• A base rate.
• For the rate cases, given what they stand to benefit from a rate increase.

Bills: SB483, SB522, SB783, SB1239, SB1254, SB1255, SB1259, SB1341, SB1664, SB1762, SB1856, SB1877, SB1977

Keywords: utility, proprietary information, customer data, data protection, electric service, customer information, emergency communication, electric utility, privacy, certification, public accountants, interstate licensing, accounting, regulatory amendment, energy efficiency, construction regulations, building codes, Texas, sustainability, cost-effectiveness

Summary: The Senate Business and Commerce Committee met with a quorum and first took up pending business, voting out several bills. Senate Bills 1697, 1569, 1202 as substituted, 1029, 1364, 1185, 924, 1008 as substituted, 264, 1376, and 1358 as substituted were reported favorably, with some sent to the local and uncontested calendar. The committee also adopted a substitute for SB 1202 and later corrected votes on several measures. SB 924 and SB 1376 drew some opposition, while the rest of the pending bills were reported without dissent or with limited nays. The committee then heard testimony on SB 1856, which would create an annual capacity-cost recovery rider for Entergy Texas customers in the MISO region. The author and Entergy argued the bill would better match rates to actual capacity costs and improve transparency, while the Texas Association of Manufacturers and the Public Utility Commission raised concerns about the short 10-day review period, rider proliferation, and the preference for full rate cases over piecemeal adjustments. The bill was left pending. The committee also heard and left pending SB 522 on CPA reciprocity, SB 1664 requiring TDUs to provide clearer, standalone rate-change disclosures, SB 1877 expanding OPUC’s access to market data, SB 1254 and SB 1255 as TDLR cleanup bills on professional employer organizations and mold assessors, SB 1341 updating manufactured housing rules, SB 1239 on sovereign debt and Texas governing law, and SB 1259 streamlining the surveyor-in-training licensing process. Additional bills discussed included SB 1977, which would cap recoverable legal expenses in electric, water, and sewer rate cases; OPUC and some consumer advocates supported the idea as a way to reduce ratepayer costs, while utility representatives warned it could discourage participation and increase rate shock. The committee also heard SB 1762 clarifying that geothermal energy conservation wells are not battery resources, and SB 783 allowing SECO to proceed with future energy-code rulemaking for state-funded buildings. Both drew supportive testimony from industry and environmental groups. All remaining bills heard during the meeting were left pending, and the committee recessed subject to the call of the chair.

Transcript Highlights:

• It simply reduces the rollback rate, also known as the voter-approved tax rate, for...

Bills: SB2, SB3, SB5, SB9, SB10, SB14, SB16, SB34, SB18, SB 2, SB 3, SB 5, SB 9, SB 10, SB 14, SB 16, SB 18, SB 34

Keywords: flooding, public safety, outdoor warning sirens, disaster preparedness, emergency response, flood warning, outdoor sirens, local government, safety measures, flood management, emergency preparedness, municipal safety, disaster response, disaster relief, emergency funding, Meteorological forecasting, local government assistance, training facilities, hemp regulation, consumable products