How property tax rate limits changed in 2019 (DRAFT – not published)

In short

Texas limits how much more tax money a city or county can raise each year without a vote. The old line was 8%. Voters had to petition for an election.¹ A 2019 law, Senate Bill 2, cut the line to 3.5% for most units. Now the vote is automatic.²³

The 30-second version

• Old rule: about 8% more day-to-day money a year, called the “rollback rate.”²³
• Old way to challenge: voters had to gather petition signatures to force an election.¹
• New rule (from 2020): 3.5% for most cities and counties, called the “voter-approval rate.”²⁴
• New way: going above it triggers an automatic November election.³

What changed, in more detail

	Before SB 2	After SB 2
Name	Rollback rate	Voter-approval rate2
Comparison rate name	Effective rate	No-new-revenue rate2
Growth allowed (most units)	8%	3.5%2
Special units (junior colleges, hospital districts, very low-rate units)	8%	still 8%45
Going above it	Voters could petition for an election	Automatic election on the November date35

Only the day-to-day part is capped. The 3.5% applies to maintenance and operations money. Debt payments are added on top.³⁴

Unused room carries over. If a unit stays below the line, it can use the unused part in later years, for up to three years.²

School districts follow different rules, set mostly by a separate 2019 law (HB 3) and state funding formulas.⁵⁴

The bill was signed June 12, 2019. Most parts started Jan 1, 2020.⁶

How it shows up here

Each August, the county, city and other units post their no-new-revenue and voter-approval rates. See tax assessor collector for the county’s numbers and property tax calendar for when.

The other side (counterweight)

• Supporters said 8% let taxes grow faster than inflation and that petitions were too hard. A lower line and automatic elections give voters the final say.¹
• Critics, including many city and county leaders, said 3.5% can lag behind fast growth, rising costs and new needs like public safety. They warned it would push more choices onto ballots or squeeze services.³
• A lower rate limit does not cap your bill. Values and new building can still raise total taxes.

Questions to ask

• Where does each taxing unit post its no-new-revenue and voter-approval rates?
• How does the tax office post the rate calculations for each unit?

What you can do next

• In August, compare each unit’s adopted rate to its voter-approval rate.
• New words? See glossary.
• Read the rate notices that come by mail or email each August.⁵

Your property tax, step by step

1. Start: how your bill works → 2. Key dates → 3. Exemptions → 4. Protest your value → 5. Paying and getting help → 6. Appeals after the ARB → 7. Who does what → 8. Rate limits

Short reference pages: Where your tax bill goes · A 2026 bill, worked out · Estimated-tax website · Exemption checklist · Glossary

Changes to this page

• Nov. 2, 2026: We re-checked every figure and date against our sources.
• Nov. 2, 2026: Rewrote the questions to ask so each is open, neutral and addressed to the public body.
• Nov. 2, 2026: Added questions to ask.

Footnotes

1. House Research Organization, bill analysis of CSHB 2 (Apr 11, 2019): background on rollback petitions and supporters’ arguments. https://hro.house.texas.gov/pdf/fr2019/190411A.pdf ↩ ↩² ↩³

2. Texas Legislature Online, Enrolled Bill Summary, 86(R) SB 2 (8% to 3.5%; renames rollback and effective rates; unused increment for up to three years). https://capitol.texas.gov/billlookup/BillSummary.aspx?Bill=SB2&LegSess=86R ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

3. Texas Municipal League, “Property Tax Process Post-Senate Bill 2 (2019) – Explanatory Q&A,” last updated March 3, 2026 (old 1.08 vs new 1.035 formula; automatic November election; written for cities). https://www.tml.org/DocumentCenter/View/4138/Post-Senate-Bill-2-Property-Tax-Process---Explanatory-QA-updated-March-2026 (checked 2026-11-01). ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

4. Texas Comptroller, “Truth-in-Taxation.” https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/ (saved copy, retrieved Nov 2026) ↩ ↩² ↩³ ↩⁴

5. Texas Real Estate Research Center, “2019 Legislation Lowdown.” https://trerc.tamu.edu/article/2019legislationlowdown-2254/ ↩ ↩² ↩³ ↩⁴

6. Texas Legislature Online, 86(R) SB 2 history (signed June 12, 2019; most sections effective Jan 1, 2020). https://capitol.texas.gov/BillLookup/History.aspx?LegSess=86R&Bill=SB2 ↩