Texas House Bill HB 4949

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the calculation of the voter-approval tax rate of certain counties and the procedure for the adoption by such a county of a tax rate that exceeds that rate; making conforming changes.

Summary

HB 4949 revises Texas property tax law for certain counties, with a particular focus on counties with populations of 500,000 or more. The bill changes how those counties calculate the voter-approval tax rate and the no-new-revenue tax rate, generally treating them differently from other taxing units and aligning them more closely with the formulas already used for special taxing units in some circumstances. It also makes conforming changes to related Tax Code provisions governing tax rate notices, rollback elections, de minimis rates, and disaster-related tax rate calculations. The bill updates several formulas in Chapter 26 of the Tax Code to account for counties that impose additional sales and use taxes and to specify how those revenues affect tax-rate calculations when a county begins, continues, or stops collecting such taxes. It also clarifies that the revised rules apply only to ad valorem tax years beginning on or after the bill’s effective date, January 1, 2026. In practical terms, the measure would affect county budgeting, tax-rate setting, and the circumstances under which voters may be asked to approve a tax rate above the voter-approval threshold.

Impact

HB 4949 would amend multiple sections of the Texas Tax Code, especially Sections 26.012, 26.04, 26.041, 26.042, 26.063, 26.07, and 26.075. Its main legal effect is to create a separate voter-approval tax rate formula for counties with populations of 500,000 or more and to adjust related procedures for tax-rate adoption and rollback elections. The bill would also change how additional sales and use tax revenue is incorporated into tax-rate calculations, and it would update disaster-related tax-rate provisions and notice requirements to reflect the new county category.

Sentiment

Based on the bill text and available history, the measure appears technical and policy-focused rather than highly controversial in the available record. There are no committee transcripts or recorded votes provided, so there is no direct evidence of public support or opposition in the materials supplied. The bill’s framing suggests an effort to refine tax-rate calculation rules for large counties and to make conforming changes across the property tax code.

Contention

The main point of potential contention is the special treatment of counties with populations of 500,000 or more, which are carved out from the general formulas used for other taxing units. Supporters would likely view the bill as a clarification and modernization of tax-rate calculations, especially where sales tax revenues interact with property tax limits. Opponents, if any, would likely focus on whether the revised formulas make it easier or harder for large counties to raise property taxes, and whether the changes alter voter control over tax increases. No specific objections or supporters are identified in the provided committee materials.