Texans for Fiscal Responsibility has issued the following vote notice for May 7th, 2025

Texas House of Representatives

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Subject: House Bill 30 (HB 30) – Disaster tax loophole

• Author: State Rep. Ellen Troxclair (R-Spicewood)
• Caption: Relating to the effect of a disaster and associated costs to remove debris or wreckage on the calculation of certain tax rates and the procedure for adoption of a tax rate by a taxing unit.
• TFR Position: OPPOSE / AMEND
• Background: 
  • While CSHB 30 makes some minor improvements about when local governments can raise property taxes after a disaster, it ultimately falls short of meaningful reform. The bill leaves intact the core loophole that allows local officials to bypass voter approval and hike taxes under the cover of a disaster declaration. The committee substitute version of House Bill 30 reinforces an existing loophole in Texas law that lets local governments raise property taxes after a disaster without voter approval. It introduces a new “disaster debris rate” and allows local taxing units to continue calculating inflated tax rates for up to three years post-disaster. By embedding a formula that permits higher rates under the guise of recovery costs, the bill creates a pathway for tax hikes without public consent. This directly undermines the principle of voter-approved tax limits and erodes taxpayer protections. This approach prioritizes bureaucratic revenue stability over meaningful tax relief and accountability. The originally filed version took the correct approach by eliminating this special carve-out and restoring taxpayer control. Lawmakers should amend HB 30 to return to its originally filed language and close this loophole once and for all.

Subject: House Bill 175 (HB 175) – New Grant program

• Author: State Rep. Mary González (D-San Elizario)
• Caption: Relating to establishing optional certifications for child-care providers participating in the Texas Rising Star Program and establishing a grant program for those providers.
• TFR Position: OPPOSE
• Background: 
  • HB 175 sets up a new system of optional certifications for child-care providers in the Texas Rising Star Program, with a focus on inclusion of children with disabilities. These certifications are intended to help providers improve their rating, and in turn, become eligible for state-administered grants. While well intentioned, the bill creates a new ongoing grant funding stream without any clear caps or long-term fiscal guardrails. This expands government footprint in child care regulation and funding. Lawmakers should instead consider simplifying or reforming existing support mechanisms rather than introducing new taxpayer-backed subsidies.

Subject: House Bill 851 (HB 851) – Tax relief reporting

• Author: State Rep. Mike Schofield (R-Katy)
• Caption: Relating to the determination and reporting of the number of residence homesteads of certain property owners for which the owner is receiving certain ad valorem tax benefits.
• TFR Position: SUPPORT
• Background: 
  • HB 851 requires appraisal districts to collect and report better data on how many homeowners—such as seniors, people with disabilities, and veterans—are using key school property tax benefits. This includes tax freezes and deferrals meant to protect fixed-income Texans. The state comptroller must then publish this information so lawmakers and the public can clearly see how these benefits are being used across the state. By enhancing transparency, this bill supports smarter budgeting and ensures existing benefits are well-documented and properly monitored.

Subject: House Bill 3913 (HB 3913) – Simplifies real estate broker rules

• Author: State Rep. Sam Harless (R-Spring)
• Caption: Relating to the licensing and regulation of certain real estate professionals by the Texas Real Estate Commission.
• TFR Position: SUPPORT
• Background: 
  • HB 3913 makes it easier and more transparent for Texans to navigate the homebuying process. It allows real estate brokers to show homes to prospective buyers without immediately forming an agency relationship, giving consumers more freedom and less pressure early in their search. By requiring written agreements only when actual brokerage services are performed, it ensures clarity and avoids hidden fees or surprise commitments. The bill also simplifies licensing education by allowing the Real Estate Commission to modernize course requirements without micromanaging topics in statute. This reduces regulatory bloat and allows for flexibility as the market evolves. It reinforces accountability by strengthening notice procedures and setting clear disciplinary grounds for violations. From a fiscally conservative standpoint, this bill reduces unnecessary red tape, protects consumers, and promotes free market dynamics in the real estate industry.

Subject: House Bill 3045 (HB 3045) – Corporate Welfare

• Author: State Rep. Stan Gerdes (R-Smithville)
• Caption: Relating to a franchise tax exemption for corporations operating a spaceport for certain national defense purposes.
• TFR Position: OPPOSE
• Background: 
  • HB 3045 creates a new corporate tax exemption for companies that run spaceports tied to national defense contracts. While well intentioned to promote space-related investment, the bill offers a complete franchise tax exemption to qualifying corporations. The bill is framed as a necessary measure to compete with other States, but as recent history has demonstrated, Texas is already attractive to these companies based on Texas’ business friendly environment, population talent and resources. The bill would drain millions from the Property Tax Relief Fund and require backfilling with general revenue—effectively shifting the tax burden to other Texans. It undermines tax neutrality by favoring specific industries over others and invites special-interest carveouts in the tax code. Taxpayers should not subsidize corporations with permanent handouts that weaken the overall tax base.

Subject: House Bill 4373 (HB 4373) – Disannexation Clean-up

• Author: State Rep. Jay Dean (R-Longview)
• Caption: Relating to the authority of a special district to exercise certain powers and duties following municipal disannexation of certain areas.
• TFR Position: SUPPORT
• Background: 
  • HB 4373 empowers local limited districts to fully function after a city disannexes their territory. It ensures these districts retain the same authority they had before being brought into a city through annexation deals. Without this clarification, cities could potentially limit district powers by leaning on old agreements, even after disannexation, or services could be disrupted because of legal confusions. This bill prevents that overreach and restores local self-governance. It protects taxpayers from city overcontrol and allows communities to manage their own services more efficiently. By reinforcing local control and reducing dependency on centralized city governments, this bill promotes a more accountable and limited form of governance. It also helps ensure that residents aren’t stuck in limbo without clear service authority or representation after disannexation.

Subject: House Bill 4735 (HB 4735) – Corporate tax credits

• Author: State Rep. Trent Ashby (R-Lufkin)
• Caption: Relating to rural development funds and insurance tax credits for certain investments in those funds; authorizing fees.
• TFR Position: OPPOSE
• Background: 
  • HB 4735 sets up a taxpayer-subsidized investment scheme using insurance tax credits to steer capital into select rural businesses via government-approved funds. While marketed as rural economic development, the bill authorizes up to $150 million in tax credits to private investors, directly reducing state revenues with no guaranteed return for taxpayers. The program’s oversight mechanisms hinge on optimistic job creation estimates and self-reported data. Tax credits are handed out before any benefits are measured, and the bill allows participants to exit the program while keeping profits and potentially short-changing taxpayers. The program creates a new administrative bureaucracy, adds at least seven state employees, and imposes millions in tech development costs—all funded indirectly by taxpayers. From a limited government perspective, HB 4735 is a costly and unnecessary intervention in the private economy.

Subject: House Bill 4944 (HB 4944) – Indigent Grant Program

• Author: State Rep. Joe Moody (D-El Paso)
• Caption: Relating to the establishment of a grant program to provide financial assistance to counties for transportation assistance to indigent litigants.
• TFR Position: OPPOSE
• Background: 
  • HB 4944 sets up a new taxpayer-funded grant program to subsidize transportation costs for indigent individuals needing to attend court proceedings. The program will be run by the state Comptroller, who must hire new staff and build a dedicated online system at significant cost. Although the bill doesn’t directly allocate funds, it opens the door to ongoing taxpayer obligations—over $1 million in just the first two years. This proposal grows government bureaucracy, adds recurring administrative expenses, and creates another layer of dependence on state funding. Instead of solving inefficiencies in the court system, it outsources the burden to taxpayers.

Subject: House Bill 4396 (HB 4396) – Corporate Welfare

• Author: State Rep. Ken King (R-Canadian)
• Caption: Relating to the eligibility of the American Performance Horseman and the American Rodeo for funding under the major events reimbursement program.
• TFR Position: OPPOSE
• Background: 
  • HB expands a government-run subsidy program that reimburses costs for hosting certain major events, adding more private rodeo-related productions to the list of eligible recipients. By designating specific companies and their events for financial incentives, it increases taxpayer exposure to what is essentially a form of corporate welfare. Rather than focusing on essential services or broad tax relief, this bill commits public funds to selectively support private entertainment enterprises. It opens the door for more special interests to lobby for similar treatment, continuing the trend of ever-expanding government handouts. This undermines fiscal discipline and misallocates public resources to private entities under the guise of economic development. A more limited government approach would prioritize letting the free market determine the viability of such events without taxpayer backing.

Subject: House Bill 2284 (HB 2284) – Music Therapy Occupational License

• Author: State Rep. Ann Johnson (D-Houston)
• Caption: Relating to the licensing and regulation of music therapists; requiring an occupational license; authorizing fees.
• TFR Position: OPPOSE
• Background: 
  • HB 2284 mandates a new occupational license for music therapists in Texas, creating a costly regulatory regime where none currently exists. This bill expands government bureaucracy by assigning rulemaking, enforcement, and licensing duties to state agencies. The licensing requirements and recurring fees create a barrier to entry, reducing access to alternative therapeutic services. By adding yet another occupational license, the bill contributes to the ongoing growth of the administrative state and limits professional freedom.

Subject: House Bill 5195 (HB 5195) – State Website modernization

• Author: State Rep. Giovanni Capriglione (R-Southlake)
• Caption: Relating to modernization of state agency Internet websites and digital services.
• TFR Position: SUPPORT
• Background: 
  • HB 5195 pushes Texas state agencies to bring their websites into the 21st century. It encourages a review of outdated digital systems to cut red tape and make government more accessible for taxpayers and small businesses. The bill focuses on low-cost improvements like clearer navigation, mobile-friendliness, and fewer paperwork burdens. It empowers agencies to eliminate duplicative manual processes and reduce regulatory friction that slows down entrepreneurship. By leaning on the Department of Information Resources to provide templates and technical help, it avoids unnecessary bureaucracy and spending. The bill fosters consistency across agency websites, saving time and money for Texans navigating government services. This is a smart, market-friendly way to improve efficiency without growing government.

Subject: House Bill 4166 (HB 4166) – Weakens consumer mortgage protections

• Author: State Rep. Ryan Guillen (R-Rio Grande City)
• Caption: Relating to an exemption for certain property owners from regulatory requirements for residential mortgage loan originators.
• TFR Position: OPPOSE
• Background: 
  • HB 4166 creates a new exemption allowing certain residential property owners who self-finance property sales to bypass key state licensing and regulatory requirements. While they must still use a licensed mortgage originator for paperwork, the owners themselves avoid accountability under Texas mortgage laws. This opens the door to regulatory arbitrage, potentially undermining consumer protections and making it harder for regulators to ensure transparency and fairness. Carving out special exemptions distorts the free market by giving certain actors preferential treatment. It also expands loopholes that could be exploited by bad actors seeking to avoid compliance costs, selectively removing oversight. This kind of also risks shifting the burden of fraud or abuse to taxpayers through enforcement or court costs. For these reasons, TFR opposes HB 4166.

Subject: House Bill 3370 (HB 3370) – Inheritance tax protection

• Author: State Rep. Trent Ashby (R-Lufkin)
• Caption: Relating to late applications for the appraisal of land for ad valorem tax purposes as qualified timber land following the death of the owner of the land.
• TFR Position: SUPPORT
• Background: 
  • HB 3370 helps families who inherit timber land by giving them a break if they miss a tax paperwork deadline due to a loved one’s death. It ensures the property can still qualify for the lower tax rate under timber appraisal rules without facing a financial penalty, as long as it was already appraised that way before. It corrects a gap in current law that treats timber land differently from agricultural land in similar situations. By extending fairness to timber landowners, the bill reduces bureaucratic red tape during times of personal loss. It also ensures that families aren’t hit with surprise tax hikes or penalties simply because they weren’t aware of technical filing requirements. Supporting this measure aligns with protecting private property rights and preventing unnecessary government overreach.

Texas Senate

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Subject: Senate Bill 209 (SB 209) – New Corporate Welfare

• Author: State Sen. Royce West (D-Dallas)
• Caption: Relating to the creation of the Texas technology and innovation program.
• TFR Position: OPPOSE
• Background: 
  • SB 209 creates a new state grant program to provide additional taxpayer funding to businesses that already receive federal innovation grants. While intended to promote technology and job growth, it duplicates federal efforts and expands state taxpayer corporate welfare. The bill imposes new costs on taxpayers, totaling nearly $2 million in just the first two years and requiring new state employees and infrastructure. Moreover, the actual grant costs are indeterminate, meaning the financial liability to taxpayers could grow substantially over time with no built-in cost cap. Texas already competes well for innovation without creating yet another taxpayer-funded subsidy system. This bill expands the role of state government in picking economic winners and losers through grants. Rather than grow bureaucracy, Texas should reduce tax and regulatory burdens across the board to spur innovation organically.

Subject: Senate Bill 517 (SB 517) – Illegal Gambling Loophole

• Author: State Sen. Mayes Middleton (R-Galveston)
• Caption: Relating to gambling criminal offenses and a defense to prosecution for a gambling offense; increasing criminal penalties.
• TFR Position: SUPPORT
• Background: 
  • SB 517 strengthens Texas law to combat the growing problem of illegal gambling through “eight-liner” machines. These devices often operate in a legal gray area and attract criminal activity while burdening law enforcement with unclear rules. By redefining key legal terms and removing outdated loopholes, the bill gives prosecutors the tools to crack down on illegal gambling without restricting legitimate amusement games. It also raises penalties for organized gambling offenses, sending a clear message that exploitation won’t be tolerated. Importantly, the law creates consistent statewide standards, preventing cities or counties from creating conflicting rules that confuse enforcement and allow bad actors to shop for lenient jurisdictions. From a fiscally conservative viewpoint, this bill upholds the rule of law, prevents public resources from being drained by illicit gambling operations, and reduces regulatory uncertainty.

Subject: Senate Bill 867 (SB 867) – HFC Reforms

• Author: State Sen. Paul Bettencourt (R-Houston)
• Caption: Relating to housing finance corporations; authorizing a fee.
• TFR Position: SUPPORT
• Background: 
  • SB 867 reins in housing finance corporations that have abused broad authority to offer tax exemptions far beyond their jurisdictions. The bill ensures that tax exemptions must provide measurable public benefit, mandating that rent reductions reflect at least 60% of the savings received. It increases transparency by applying open meetings and records laws to HFCs and requiring annual compliance audits submitted to the state. This oversight helps verify that taxpayer funds are not indirectly subsidizing high-rent developments under the guise of affordability. By closing loopholes and strengthening accountability, the bill discourages the misuse of public tax breaks and promotes efficient government. Requiring local approval gives voters and officials a say in whether their communities should support subsidized developments. For these reasons, TFR supports SB 867.

Subject: Senate Bill 945 (SB 945) – Anti-ESG

• Author: State Sen. Bryan Hughes (R-Mineola)
• Caption: Relating to the adoption of political shareholder proposals by insurers and insurer holding companies.
• TFR Position: SUPPORT
• Background: 
  • SB 945 protects insurance companies from activist shareholders who try to hijack corporate governance to push environmental or political agendas. It stops proposals that seek to punish fossil fuel companies or force insurers to track emissions or deny coverage based on political concerns. By blocking these proposals, the bill defends free-market principles and ensures insurers focus on financial soundness, not ideological activism. This shields Texas companies from ESG-style mandates that could raise costs and reduce access to insurance for lawful energy businesses. It also preserves the rights of businesses to operate without being coerced into politically driven decisions.

Subject: Senate Bill 946 (SB 946) – Blocks ideological credit discrimination

• Author: State Sen. Bryan Hughes (R-Mineola)
• Caption: Relating to the prohibition on certain discrimination in the extension of credit to organizations based on social credit or value-based standards.
• TFR Position: SUPPORT
• Background: 
  • SB 946 protects organizations from being penalized by lenders for their religious beliefs, political values, or participation in lawful industries. It ensures that credit decisions are based strictly on financial criteria rather than subjective ESG or social credit scoring systems. This helps small businesses and nonprofits avoid unfair treatment by politically biased lenders. It also curbs the growing trend of ideological gatekeeping in financial services. From a limited government standpoint, the bill reins in the abuse of credit lenders to enforce progressive orthodoxy. It reinforces neutrality in finance, ensuring that credit remains a tool for economic growth, not social control.

Subject: Senate Bill 1071 (SB 1071) – HOT Tax Subsidy

• Author: State Sen. Sarah Eckhardt (D-Austin)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue derived from a hotel and convention center project.
• TFR Position: OPPOSE
• Background: 
  • SB 1071 creates a carveout allowing Pflugerville to keep state tax revenue for a local hotel and convention center project, effectively turning taxpayer dollars into a subsidy for a specific development. While dressed as economic development, this measure shifts state tax collections away from general use and funnels them toward one city’s project, raising fairness concerns. Over the long term, it results in millions in lost state revenue, setting a precedent for more cities to seek similar treatment, which could snowball into broader budgetary holes. Rather than encouraging private investment through competitive market forces, the bill promotes government picking winners by subsidizing select developments. Taxpayer funds should support broad-based relief or essential services—not corporate partnerships.

Subject: Senate Bill 1086 (SB 1086) – HOT Tax expansion

• Author: State Sen. Charles Perry (R-Lubbock)
• Caption: Relating to the authority of certain counties to impose a hotel occupancy tax.
• TFR Position: OPPOSE
• Background: 
  • SB 1086 allows Childress County to impose a hotel occupancy tax on short-term rentals outside the City of Childress. This new tax could reach up to 7% and would be added on top of the price paid by visitors. While the goal is to fund tourism promotion, the bill effectively expands government taxing authority and sets a precedent for counties to seek new local taxes. The bill also allows the tax to be implemented at any time, giving officials too much discretion without voter input. Instead of focusing on lean government and organic economic growth, it relies on increased taxation to fund promotional efforts. A better approach would be to foster local business through deregulation and tax relief.

Subject: Senate Bill 1087 (SB 1087) – HOT Tax expansion

• Author: State Sen. Charles Perry (R-Lubbock)
• Caption: Relating to the authority of certain counties to impose a hotel occupancy tax.
• TFR Position: OPPOSE
• Background: 
  • SB 1087 gives Mason County new authority to impose a county-level hotel occupancy tax, adding yet another layer of taxation on short-term visitors. While it excludes hotels already taxed within the city of Mason, this bill still increases the overall tax burden on travelers staying in surrounding unincorporated areas. Expanding local tax authority sets a dangerous precedent for further county-level taxation across Texas. This approach raises concerns about government overreach, especially when tax revenue is earmarked for tourism promotion—an area better handled by the private sector. Rather than encouraging fiscal discipline or tax relief, the bill authorizes government spending on marketing and promotion activities with no clear accountability.

Subject: Senate Bill 1483 (SB 1483) – HOT Tax Subsidy

• Author: State Sen. Adam Hinojosa (R-Corpus Christi)
• Caption: Relating to the authority of certain municipalities to receive certain tax revenue derived from a hotel and convention center project and to pledge certain tax revenue for the payment of obligations related to the project.
• TFR Position: OPPOSE
• Background: 
  • SB 1483 would let South Padre Island receive state tax rebates to support a future convention center hotel. Specifically, the city could keep state hotel and sales tax revenue generated from the hotel and nearby businesses for up to ten years. This money would be used to pay off debt or other costs associated with building the facility. The bill diverts public tax dollars away from the state’s general fund—impacting taxpayers across Texas. The bill creates another carveout in the Tax Code, expanding a growing list of cities receiving similar perks. These targeted subsidies undermine the free market by favoring politically selected projects. From a fiscally conservative perspective, this is yet another example of corporate welfare—where state funds are funneled into local developments that should stand on their own merits.

Subject: Senate Bill 1553 (SB 1553) – HOT Tax expansion

• Author: State Sen. Pete Flores (R-Pleasanton)
• Caption: Relating to the authority of certain counties to impose a hotel occupancy tax.
• TFR Position: OPPOSE
• Background: 
  • SB 1553 gives Kerr County the power to impose an additional hotel tax outside city limits. While marketed as a way to fix up local venues like the Hill Country Youth Event Center, the bill opens the door for long-term reliance on hotel taxation to fund local infrastructure. From a fiscally conservative perspective, this measure avoids tackling spending prioritization and instead grows government by creating a new revenue stream. It also sets a precedent for more counties to push for special taxing authority, further expanding local government reach. HOT taxes are often passed under the radar, but they accumulate over time and increase the tax burden on taxpayers. Rather than increasing taxes, local officials should reprioritize existing funds.

Subject: Senate Bill 2133 (SB 2133) – HOT Tax Subsidy

• Author: State Sen. Juan Hinojosa (D-McAllen)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects.
• TFR Position: OPPOSE
• Background: 
  • SB 2133 allows the City of McAllen to divert state tax revenues into a local hotel and convention center development through a 10-year rebate scheme. Although framed as economic development, this bill effectively subsidizes local infrastructure using state taxpayer dollars, creating a special carveout for one city. It sets a concerning precedent of expanding corporate-style giveaways to municipalities under the guise of tourism enhancement. This arrangement risks draining millions from the state’s general revenue fund. Rather than encouraging self-sustaining local growth, the bill fosters dependency on state subsidies for local ventures. Fiscally responsible governance should limit such tax diversions and focus instead on equitable, statewide tax relief.

Subject: Senate Bill 2477 (SB 2477) – Urban housing reform

• Author: State Sen. Paul Bettencourt (R-Houston)
• Caption: Relating to certain municipal regulation of conversion of certain office buildings to mixed-use and multifamily residential occupancy.
• TFR Position: SUPPORT
• Background: 
  • SB 2477 cuts red tape and costs for converting vacant office buildings into much-needed housing in urban Texas. By eliminating burdensome permitting fees, unnecessary zoning changes, and expensive infrastructure demands, the bill removes financial roadblocks that deter private investment. It reduces government overreach by limiting local micromanagement of private development, while still ensuring compliance with basic health and safety standards. The bill helps maximize use of existing infrastructure and avoids taxpayer-funded expansion of public utilities or roads. It discourages urban blight by making it easier for property owners to repurpose unproductive assets. Streamlined administrative approvals protect developers from arbitrary delays by city councils. By preventing new impact fees or parkland taxes, the bill stops cities from extracting extra money from taxpayers under the guise of regulation. Overall, this is a smart, market-driven solution that increases housing without growing government.

Subject: Senate Bill 2622 (SB 2622) – HOT Tax Subsidy

• Author: State Sen. Phil King (R-Weatherford)
• Caption: Relating to the authority of certain municipalities to use certain tax revenue derived from a hotel and convention center project.
• TFR Position: OPPOSE
• Background: 
  • SB 2622 is a targeted subsidy that allows the City of Burleson to keep millions in state hotel occupancy and sales tax revenue generated from a planned hotel and convention center. Instead of those tax dollars going to fund state priorities, they will be handed back to local developers and city officials. This bill creates an uneven playing field, privileging one city with special tax treatment while other municipalities and taxpayers receive no such benefit. It effectively commits the state to over $5 million in future revenue losses. By codifying a decade-long rebate, it shifts local development risk onto state taxpayers. From a limited government perspective, this is another example of economic favoritism that expands state entanglement in local projects. Rather than lowering taxes or curbing spending, the bill redistributes public funds to incentivize a politically connected project. Lawmakers should reject this carveout and protect taxpayers from funding speculative municipal ventures.

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Reminder: Vote Notices are provided to both Texas state lawmakers and the general public, sharing Texans for Fiscal Responsibility’s position on issues eligible to be rated as a part of the Fiscal Responsibility Index. Notices are provided prior to votes being taken in each legislative chamber.

Disclaimer: We reserve the right to consider amendments to legislation that may be introduced without notice as a part of issues to be rated on the Fiscal Responsibility Index. We will make every effort to provide notice on amendments that are pre-filed.