AUSTIN— Today, the full Texas House preliminarily passed Senate Bill 2, the Property Tax Reform & Relief Act of 2019. The bill lowers the rollback tax rate, now called the “no-new-revenue tax rate,” from 8 percent to 3.5 percent for cities, counties, and some special districts. It also imposes a rollback rate of 2 percent for school districts. Under current law, the rollback rate is the threshold above which taxpayers can initiate a challenge to the increase.

“Texas is on the verge of realizing truly meaningful tax reform,” said Texas Public Policy Foundation’s Executive Director Kevin Roberts. “Homeowners and businesses have long labored under a broken property tax system that takes too much and gives too little. The reforms preliminarily passed today chart a bold, new path that should excite every Texan.”

“The days of local governments raising property taxes at a rate that forces too many Texans out of their homes and businesses could soon come to an end after the House’s passage of today’s historic property tax reform,” said Dr. Vance Ginn, director of the Center for Economic Prosperity. “The lowered rollback rates will trigger an automatic election in November that should provide Texans with a louder voice in rate-setting process. By passing property tax reforms and limiting state spending growth, there’s an opportunity for real cuts to property taxes this session.”

“Texans are clamoring for real tax reform, and that’s exactly what this bill offers. Lowering the rollback tax rate is something that hasn’t been done in four decades and is long overdue. This bill resets this rate to be more in line with people’s ability to pay, and residents and businesses across Texas will benefit,” said Think Local Liberty’s Ellen Troxclair. “Texas taxpayers desperately need the protection that comes along with their ability to have a direct vote in any property tax increase over 3.5%, and I applaud the House for getting us one step closer.”