Texas Legislature Pushes Property Tax Cap—but Critics Call It Cosmetic

In a move hailed by some state lawmakers as a disciplined approach to property tax restraint, the Texas House on Monday approved Senate Bill 10, aiming to lower the annual cap on property tax revenue growth for cities and counties—without triggering voter approval—from the current 3.5% to 1%.

However, the vote underscores rising frustration among conservatives with critics questioning whether the measure delivers meaningful relief for homeowners.

State Rep. Morgan Meyer (R–University Park), who carried the bill in the House, emphasized accountability. “I believe that we need to venture and do everything we can at the state level to provide lower taxes to our constituents,” Meyer said during floor debate, framing the legislation as a taxpayer safeguard for the state's rapidly expanding population.

Despite proponents’ framing of SB 10 as a bold act of restraint, the reaction from more conservative Republicans was noticeably underwhelmed. State Rep. Mitch Little (R–Lewisville) voiced skepticism about the real benefits, warning constituents that the tax relief may amount to “a Starbucks run.” “Everyone in my district who has calculated this suggests that this bill roughly equates to a Starbucks run in tax relief,” he said. That metaphor captures mounting concern that the proposed cap—while tighter than before—may not translate into tangible savings.

As filed, Senate Bill 10, authored by Sen. Paul Bettencourt (R–Houston) and carried in the House by Meyer, would reduce the cap to 2.5% starting in 2026. It would have only applied to 51 of Texas’ 254 counties and only about 57 Texas cities because of the 75,000 minimum population threshold.

​Rep. Tony Tinderholt pointed out some of the problems with the legislation.

​Moving in that direction, the House adopted, through a surprising coalition of conservatives and House Democrats, Representative Brent Money’s amendment applying the provisions of SB 10 to all Texas cities and counties regardless of population. And the same coalition also pushed through Rep. Andy Hopper’s amendment that extended the bill’s provisions to special purpose districts; the current voter approval rate for those districts is 8%.

​Rep. Shelley Luther supported Money’s expansion of the bill.

The more aggressive 1% threshold came via an amendment offered by Rep. Jared Patterson (R–Frisco), who succeeded in exempting public safety spending from the limit in a 94–43 vote. The effect of the public safety exemption has some conservatives concerned that it could undermine the reduction in the cap.

The Texas Legislature has been promoting tax relief every legislative session since 2019. Yet property taxes keep increasing.

​Overall, during that period the property tax levy has increased $23.6 billion, even while the Legislature has used $51 billion of state tax dollars to slow the growth of school taxes. County taxes have grown 63% and cities by 50%.

Critics of the Legislature’s effort says meaningful tax relief will only come when legislators start paying attention to Texans.