Texas Senate passes property tax bill

An altered Senate Bill 2 advanced through the Texas Senate Monday with a slightly higher election trigger than originally proposed. The bill now would allow municipalities to increase property taxes by 3.5 percent, instead of 2.5 percent, before voter approval is required. In the current version of the bill, school districts would be held to the more severe 2.5 percent standard. That’s still far lower than the 8 percent increase currently allowed. SB 2 passed in an 18-12 vote and will now move on to the House for further debate. Meanwhile, the House has modified its version of property tax reform by exempting school districts, community colleges, emergency service districts and hospital districts from the new trigger, though discussion of that bill is now on hold until next week.