TX HB774

Counties and municipalities must use all "surplus revenue" from the preceding fiscal year to provide property tax relief, with surplus defined as revenue exceeding the prior year's budget adjusted for population growth and inflation

Establishes an annual cap on county and municipal property tax rates based on a formula that limits revenue growth to the previous year's total revenue adjusted for population growth and inflation

Requires the comptroller to determine and publish the state inflation rate in the Texas Register by July 1 each year

Designated county or municipal officers must calculate the maximum allowable tax rate by August 7 and submit it to the governing body

Allows counties and municipalities to exceed the tax rate cap only when necessary to avoid impairing existing debt obligations where taxes were pledged for payment

Takes effect January 1, 2025, applying to fiscal and tax years beginning on or after that date