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HB 176

Relating to the repeal of provisions providing for the calculation of an unused increment rate and the use of that rate in calculating certain other ad valorem tax rates.

89th Legislature, 2nd Called Session (2025) Introduced by Hillary Hickland

HB 176 repeals Texas property tax provisions that calculate an unused increment rate used in determining ad valorem tax rates, simplifying tax calculations.

Referred to Ways & Means
#citygovernment--employees/officers(i0061) #countygovernment--employees/officers(i0095) #taxation--property-assessment&collection(i0798) #taxation--property-taxrate(i0794)
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Bill Summary · HB 176

Legislative bill overview

HB 176 proposes to repeal provisions in Texas law that establish an "unused increment rate" and eliminate the use of this rate in calculating certain ad valorem (property) tax rates. The bill would simplify the tax calculation methodology by removing this specific rate-setting mechanism from the state's property tax code.

Why is this important

Property tax calculation methods directly affect how much homeowners, businesses, and other property owners pay in taxes. Eliminating the unused increment rate could alter the baseline from which tax rates are calculated, potentially affecting tax bills across the state. This change could impact school funding and local government revenues that depend on property tax collections.

Potential points of contention

  • Revenue impact unclear: Without specifics on how the unused increment rate currently affects calculations, it's uncertain whether this repeal increases or decreases overall tax revenue or shifts burdens between property types
  • Local government funding: Schools and municipalities relying on predictable property tax revenue may face funding uncertainties if this rate mechanism is removed
  • Implementation complexity: Repealing a long-standing calculation method may create transition issues and require recalibration of existing tax structures already dependent on this mechanism

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

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