Which Bills Will Affect Property Taxes?
The 86th Texas legislative session ended May 27, and the final deadline for Gov. Greg Abbot to sign or veto legislation was June 16.
House Bill 3, which has repercussions for Conroe ISD and surrounding schools districts in the form of additional money allocated for students as well as for teacher and other staff raises.
The bill is also designed to reduce property taxes, reducing the maintenance and operations tax rate by up to $0.08 cents in the next academic year.
Meanwhile, Senate Bill 2 passed this year to limit property tax revenue growth to 3.5% more than the previous year in cities, counties and other taxing units. The legislation, signed into law in June, would trigger an election if property tax revenue exceeds that 3.5% threshold.
Another measure—House Joint Resolution 3— which would have provided property tax relief by increasing state sales tax rate, was vetoed by the governor when it reached his desk.
School officials, teachers and staff are not the only ones affected by HB 3. Additionally, property taxes will drop for local taxpayers. Creighton said school district property tax rates will decrease the next two years with an average drop of $.08 per $100 valuation across the state in 2020 and $0.13 in 2021.
The cost of the property tax reduction aspect of HB 3 is around $5.1 billion, and it is the largest amount the state has ever provided. In addition to HB 3, the Legislature also approved Senate Bill 2, which is dedicated to the state’s property tax system. Creighton said the bill has a provision requiring cities and counties to hold an election if they want to raise property tax revenue generated more than 3.5% than the previous year.