TX HB4949

Counties with a population of 500,000 or more would be subject to a stricter voter-approval tax rate formula that allows zero automatic increase for maintenance and operations, calculated as: no-new-revenue maintenance and operations rate plus current debt rate

These large counties would be excluded from the definition of "special taxing unit" and could not use the 8% or 3.5% automatic increase multipliers that other taxing units may apply to their voter-approval tax rates

Large counties would be prohibited from using the disaster exception provision that allows other taxing units to temporarily calculate their voter-approval tax rate using the more lenient special taxing unit formula

Counties with 500,000+ population would not be eligible to use the "de minimis rate" alternative that allows smaller taxing units to potentially adopt rates exceeding the voter-approval rate without triggering an automatic election

The bill takes effect January 1, 2026, and applies to ad valorem taxes imposed for tax years beginning on or after that date