Bettencourt’s Bill lowers Voter-Approval Tax Rate from 3.5% to 2.5% for Populations Over 75,000
AUSTIN, TX — During the Second Called 89th Special Session by Governor Greg Abbott, The
Texas Senate has passed Senator Paul Bettencourt’s (R-Houston) Senate Bill 10 (SB 10) on
a 18 to 12 vote. The bill, a priority legislation of Lt. Governor Dan Patrick, lowers the voter-approval
tax rate (VATR), previously known as the rollback rate, for most large cities and counties from
3.5% to 2.5%, matching the growth cap already applied to school districts statewide.
“In 2019, we passed SB 2, another priority of Lt. Gov. Dan Patrick, to cut the VATR from
8% to 3.5%, slowing city and county property tax levy growth for the first time in 38 years,”
said Senator Bettencourt. “Speaker Burrows was my house sponsor”, he added.
Despite the 2019 success, where ISD levy growth dropped from 18.26% to 3.21% annually. Both
county levy growth climbed from 8.74% to 9.65% and City levy growth slowed to 8% annually.
“Simply put, cities and counties have raised their tax bills three times faster than schools,
even after we reformed the system,” Bettencourt adds. “SB 10 closes that gap to make
property tax rates go down as values go up, to deliver lasting property tax relief.”
Key Components of SB 10:
• Reduces the VATR multiplier from 3.5% to 2.5% for cities/counties with pop. over 75,000.
• Requires majority voter approval for any increases above 2.5% in VATR elections.
• Retains the 3.5% threshold for cities and counties under 75,000 population.
• Delivers $1.92B in direct local funding for 2026–27, including $1.5B for water projects,
$331M for rural law enforcement, and $90M for ambulances.
“After $22.7 billion dollars of ISD property tax reductions in 2023, and $10 billion more in
2025, SB 10 is needed to slow the growth of county and city taxes, from the 3.5% VATR,
down 29.57% to 2.5% not counting new growth. For more property tax relief across the
board,” He stated.
“It’s time to take another step and rein in growth of city and county tax bills. That logical
next step is SB 10, aligning city and county VATR with the 2.5% collection limit already in
place for school districts, letting voters decide to approve tax increases above the limit in
November,” Senator Bettencourt concluded.
Senator Bettencourt also gave examples of double digit blockbuster property tax increases
proposed in 2025 by city and county governments not yet voted on. SB 10 now heads to Chair
Morgan Meyers in the House Ways and Means Committee.
Additional property tax relief coming this November, Texans will vote on, is record school
homestead and business personal property tax exemptions that could save 5.7 million
homeowners an average of $484/year, and seniors/disabled Texans up to $907/year, with a
supermajority of the latter, paying no ISD taxes at all.