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Bill

HB 264

Relating to the dedication of certain surplus state revenue for ad valorem tax relief.

89th Legislature (2025) Introduced by Keith Bell

HB 264 redirects Texas surplus state revenue to reduce property tax burdens on taxpayers rather than allocating funds to other state purposes.

Referred to Appropriations
#comptrollerofpublicaccounts(v2608) #education--primary&secondary--finance(i0250) #statefinances--budget(i0747) #taxation--property-assessment&collection(i0798) #taxation--property-taxrate(i0794) #taxation--schooldistrict(i0785)
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Bill Summary · HB 264

Legislative bill overview

HB 264 proposes to dedicate a portion of surplus state revenue to provide ad valorem (property) tax relief for Texas taxpayers. The bill would direct excess state funds toward reducing property tax burdens rather than allowing them to remain in the general revenue fund or be allocated to other state priorities.

Why is this important

Property taxes are a significant expense for homeowners and businesses in Texas, and any relief mechanism could affect household budgets and business operations across the state. The bill also reflects broader fiscal policy choices about how Texas uses budget surpluses—whether to reduce taxes, fund services, or reserve funds for future needs.

Potential points of contention

  • Revenue dedication mechanism: Questions about how "surplus" is defined, when it triggers, and whether automatic dedications reduce legislative flexibility in budgeting during economic downturns
  • Fairness across property types: Unclear whether relief applies equally to residential, commercial, and agricultural properties, or if some groups benefit more than others
  • Local government impact: Property taxes fund schools and local services; state-directed relief could shift fiscal pressure to local governments or require compensating appropriations from the state
  • Competing priorities: Debate over whether surplus funds should go to tax relief versus education, healthcare, infrastructure, or budget reserves

Compiled from official sources — confirm details with the bill’s official record.

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