TX HB4248

Creates a new exception allowing certain municipalities to adopt additional sales and use taxes even if located in a county containing a regional transportation authority with a principal city over 1.1 million population

The exception applies specifically to municipalities with more than 70,000 population that span two counties, where 90% of territory is in a county with over 800,000 population and the remainder is in a county with over 4 million population

Raises the combined sales and use tax cap from 2% to 3% for municipalities qualifying under this new exception, allowing them to impose higher total local sales taxes

Maintains the existing 2% combined rate cap for all other municipalities not meeting the specific population and geographic criteria

Takes effect September 1, 2025