If you read my last post on SB 9 and how it could impact DFW communities, you’ll want this important update. The legislative landscape has shifted, and now SB 10 is at the center of the property-tax conversation in Texas.
SB 9 Has Changed Course
When we last looked at SB 9, the bill proposed reducing city and county property tax revenue caps from 3.5% to 2.5% for communities over 75,000 people. That would have meant cities like Allen, Plano, and Frisco were in, while smaller suburbs like Prosper, Celina, and Anna were out.
But in the latest special session, SB 9 was repurposed into an education bill. It now focuses on replacing the STAAR test with shorter assessments while keeping the school A–F rating system. In other words: it’s no longer about property taxes.
Enter SB 10: The Real Property Tax Bill
Now, the heavy lifting on property tax reform belongs to SB 10. Here’s what it does:
- Caps city and county property tax revenue growth at 2.5% for populations over 75,000, the same level already applied to school districts.
- Requires voter approval if local governments want to exceed that cap.
- Includes funding (about $1.9B in 2026–27) for critical infrastructure like water, law enforcement, and emergency services.
- The House version of SB 10 goes even further—expanding the cap to all cities and counties, not just larger ones, while exempting public safety spending.
This means the “under 75K” communities we highlighted in the last post may soon be pulled into the same framework, depending on how final negotiations play out.
Why Smaller Cities Could Be Pulled In
This is where things get especially important for the DFW area. Many of the suburbs under 75,000 residents—Celina, Prosper, Little Elm, Princeton, Anna, and Melissa—are also some of the fastest-growing communities in Texas.
- Rapid growth = rising costs. These cities are adding thousands of new residents each year, which drives demand for roads, schools, parks, utilities, and public safety.
- Revenue flexibility is critical. Under the current 3.5% cap, smaller cities have slightly more breathing room to fund growth without voter approval. If SB 10 extends to all cities, they’ll be locked at 2.5%—potentially straining their ability to keep up.
- Risk of lagging services. Without new voter-approved revenue, infrastructure projects could be delayed, leaving new neighborhoods waiting longer for the roads, schools, and services they were promised.
For fast-growing DFW suburbs, this isn’t just a tax issue—it could shape the quality of life for years to come.
What This Means for DFW Homeowners
- Allen, Plano, and Frisco: Already firmly in the 2.5% cap group under SB 10. Residents could see smaller annual increases in property taxes, but city leaders may face tougher budget choices.
- Dallas, Fort Worth, Arlington, and other large cities: Also covered, with similar trade-offs between tax relief and budget flexibility.
- Smaller suburbs (Prosper, Celina, Little Elm, Princeton, Anna, Melissa, etc.): If the House expansion is adopted, they too will face tighter limits—potentially changing how quickly they can fund new roads, schools, and services as populations grow.
For homeowners, this means more say at the ballot box—but also the possibility of delayed projects if voters are reluctant to approve higher tax rates.
Other Property Tax Relief on the Horizon
Don’t forget: November’s ballot will also ask Texans to approve:
- A homestead exemption increase from $100K to $140K (with $200K for seniors and disabled homeowners).
- A big jump in the business personal property exemption, from $2,500 to $125,000.
These measures are designed to provide direct relief, while SB 10 reshapes how local governments raise revenue going forward.
Bottom Line
The property tax debate is far from over. SB 9 is no longer part of the discussion, but SB 10 could have long-lasting effects on how DFW cities—from Dallas to Allen, Plano, Frisco, and beyond—plan their budgets.
As growth continues across North Texas, the balance between tax relief and funding essential services will be at the heart of local conversations. And with more decisions potentially landing on voters’ ballots, homeowners will have a direct hand in shaping the future of their communities.
👉 Missed the first post? Catch up here:
SB 9 and the DFW Metroplex: Which Communities Are In and Which Are Out
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