Texas HB774 establishes limits on municipal and county ad valorem tax rates using inflation and population growth rates.

Texas HB774 amends the Local Government Code and the Tax Code to provide ad valorem tax relief using surplus revenue. It defines "consumer price index," "inflation rate," and "population growth rate." The bill mandates that the comptroller determine the inflation rate by July 1 and publish it in the Texas Register. It limits the tax rate a county or municipality can adopt based on the previous year's revenue and these rates. The bill also allows for higher tax rates if the county or municipality pledged the taxes for debt payment. It takes effect January 1, 2025.

Texas HB774 establishes limits on municipal and county ad valorem tax rates using inflation and population growth rates.

Texas HB774 amends the Local Government Code and the Tax Code to provide ad valorem tax relief using surplus revenue. It defines "consumer price index," "inflation rate," and "population growth rate." The bill mandates that the comptroller determine the inflation rate by July 1 and publish it in the Texas Register. It limits the tax rate a county or municipality can adopt based on the previous year's revenue and these rates. The bill also allows for higher tax rates if the county or municipality pledged the taxes for debt payment. It takes effect January 1, 2025.