AUSTIN, TX – Today, the Texas Senate has passed Senator Paul Bettencourt’s (R-Houston) Senate Bill 9 (SB 9) to the Texas House following an 18 to 3 floor vote, and prior 4-1 vote in the Senate Local Government Committee. SB 9, a priority legislation to Lt. Governor Dan Patrick, during the 89th First Called Special Session by Governor Greg Abbott. The bill lowers the voter-approval tax rate (VATR), previously known as the roll back rate, for most large cities and counties from 3.5% to 2.5%, matching the growth limit already applied to school districts statewide.

“In 2019, we passed SB 2, another priority of Lt. Gov. Dan Patrick, to cut the Voter Approval Tax Rate from 8% to 3.5%, slowing statewide city & county levy property tax growth for the first time in 38 years,” said Senator Bettencourt. “After historic relief on school property taxes, it’s time to take the next big step and rein in on growth of city and county tax bills. SB 9 is that logical next step, aligning city and county VATR with the 2.5% collection limit already in place for school districts, letting voters decide to agree to tax increases above the limit in November.” He added.

Despite the success from the 2019 reforms in SB 2 which lowered VATRs from 8% to 3.5%, where ISD levy growth dropped from 18.26% to 3.21% annually. County levies growth climbed from 8.74% to 9.65% annually and city levies growth dropped to 8% annually.

Key Components of SB 9

• Reduces the VATR multiplier from 3.5% to 2.5% for cities/counties with pop. over 75,000.
• Requires majority of voter approval for any increases above 2.5% VATR.
• Retains 3.5% threshold for cities and counties under 75,000 population.

“Simply put, cities and counties have been raising property tax bills 3 times faster than schools, even after we reformed the system in 2019,” Bettencourt said. “SB 9 closes that gap to make property tax rates go down as values go up, saving taxpayer money to deliver real, lasting property tax relief.” Senator Bettencourt concluded.

Senator Bettencourt noted the Legislature committed $1.921 billion in direct local funding support for 2026–27 to local taxing units like counties and cities, including:

• $1.5B for water projects
• $331M for rural law enforcement salary supplements
• $90M for ambulances

During the Senate Committee hearing on Local Government, only 12 current or former local tax unit officials testified against SB 9, the lowest opposition to a property tax relief bill in more than a decade. Even the City of Austin CFO acknowledged the success of the 2019 reforms, SB 2 as passed in 2019, while testified “On” SB 9 in 2025. The bill now heads to the Texas House where Chairman Morgan Meyers has filed its companion, HB 9.

This November, Texans will also vote on record school homestead and business personal property tax exemptions that could save 5.7 million homeowners an average of $484/year, and seniors/disabled Texans up to $907/year, with a supermajority of the latter, paying no ISD taxes at all.

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