As the calendar turns to a new year, a wide range of laws passed by the Texas Legislature during the most recent regular session and a second special session take effect on Jan. 1. Taken together, these changes touch many aspects of daily life in Texas, from property taxes and housing to artificial intelligence, app store accountability, insurance, workforce regulation, and local government finance. While some of the measures are narrow and technical, others reflect broader policy debates that have been unfolding for years. What follows is a detailed, neutral overview of the most significant laws that will begin to apply at the start of the year, with an emphasis on how they fit together and what Texans may reasonably expect from them.
A strong focus on property taxes and transparency
One of the most consistent themes among the new laws is property taxation. Lawmakers continued to refine limits on how much local taxing entities can increase tax rates and how those rates are calculated and disclosed to the public. Several of these measures were linked to proposed constitutional amendments that voters approved in November, giving them additional legal weight.
Among the most notable is HB 9, which exempts $125,000 of personal property used to generate income from property taxes. This change is particularly relevant for small businesses and sole proprietors that rely on equipment, tools, or other tangible assets to operate. By removing a portion of that value from taxation, the Legislature appears to be aiming to reduce operating costs and encourage business activity, especially at the local level.
HB 22 takes a broader step by amending the Tax Code to make all intangible personal property exempt from property taxation. Intangible assets, such as certain financial instruments or intellectual property, are often difficult to value and administer for tax purposes. Exempting them simplifies the system and reduces disputes, though it may also shift the tax burden more heavily onto tangible property.
Several bills adjust the mechanics of tax rate calculation and approval. HB 30 revises how voter-approval tax rates (VATR) are calculated and adopted in disaster areas and removes the ability of most taxing units in those areas to exceed the VATR without holding an election. SB 1023 adds a transparency component by requiring tax rate calculation forms to be capable of including hyperlinks to documents that support the accuracy of the figures used, making it easier for taxpayers to review and verify the numbers.
Other measures focus on specific circumstances. HB 1392 clarifies that property tax payments are considered timely if the due date falls on a day when the tax collector’s office is closed and payment is made on the next regular business day. HB 1951 revises how and when penalty notices are delivered for late rendition statements, adding clearer deadlines and certified mail requirements in certain cases.
There are also targeted exemptions and appraisal rules. HB 1244 ensures that certain open-space agricultural land does not lose appraisal eligibility solely due to a change in ownership, as long as the land use and oversight remain the same. HB 2723 directs appraisal districts to grant cemetery tax exemptions even when no formal application is filed, if the use of the land for burial is clear. HB 2525 provides a property tax exemption for certain charitable organizations that provide housing and services to people aged 62 and older, linking the exemption to a minimum level of charitable spending.
Taken together, these provisions reflect an ongoing effort to balance tax relief, administrative clarity, and local government revenue needs.
Artificial intelligence governance enters state law
One of the most high-profile policy developments taking effect is HB 149, also known as the Texas Responsible Artificial Intelligence Governance Act. This law establishes a regulatory framework for the use of artificial intelligence systems in Texas, an area that has been evolving rapidly and, until now, has been governed mostly by federal guidance and industry standards rather than comprehensive state law.
HB 149 creates mandatory disclosure requirements for certain users of AI systems, including governmental agencies, signaling an emphasis on transparency when automated systems are used in decision-making. It also prohibits the development or distribution of AI systems designed to produce or assist in producing certain sexually explicit content or child pornography, codifying restrictions that align with existing criminal laws but apply them explicitly to AI technologies.
The law also establishes the Texas Artificial Intelligence Council, which is expected to study AI trends, advise policymakers, and potentially recommend future legislative action. While the full impact of HB 149 will depend on how it is implemented and enforced, it marks a clear recognition by state lawmakers that AI is no longer a niche issue but a core governance concern.
Immigration enforcement and local jails
SB 8 introduces new requirements for counties that operate jails or contract with private vendors to do so. Under this law, sheriffs must request and enter into an immigration law enforcement agreement with U.S. Immigration and Customs Enforcement. The bill also establishes a grant program to help fund these efforts.
Supporters view the law as a way to standardize cooperation with federal immigration authorities and provide financial assistance to local governments. Critics have raised concerns about local discretion and resource allocation. Regardless of perspective, SB 8 represents a clear policy choice to formalize and expand the role of local law enforcement in immigration matters.
App stores, minors, and digital accountability
Another significant and potentially far-reaching law is SB 2420, the App Store Accountability Act. This measure establishes duties for app stores and app developers related to age verification, parental consent, data protection, and age ratings.
Under the law, app store operators must use a commercially reasonable method to verify a user’s age category. If the user is a minor, their account must be linked to a parent or guardian account, and parental permission is required before downloads or purchases. The bill also sets guidelines for age ratings and protecting personal information.
The law reflects growing concern among policymakers about children’s access to digital content and data privacy. Its practical effects will depend on how app stores implement age verification and how developers adapt to the new requirements, but it places Texas among the states taking an assertive approach to online child protection.
Housing, evictions, and insurance
Several laws address housing and related issues. Most of SB 38 takes effect in January, amending the law on evictions of people who are not authorized to enter or occupy premises. While technical in nature, changes in eviction law can have significant implications for landlords, tenants, and courts, particularly in areas with housing shortages or high turnover.
In the insurance sector, HB 2067 revises notice requirements when insurers decline, cancel, or refuse to renew certain policies. It also requires insurers to submit quarterly reports to the Texas Department of Insurance summarizing their reasons for these actions, with the department posting aggregated summaries online. This reporting requirement is designed to give regulators and the public greater insight into insurance market practices without disclosing individual policyholder information.
Labor, finance, and business regulation
A number of bills taking effect Jan. 1 are aimed at refining regulatory frameworks for labor, finance, and commerce. HB 3699 clarifies terms used in initial unemployment claims, a change that could affect eligibility determinations and administrative consistency. SB 1455 shifts the funding mechanism for regulating workers’ compensation from maintenance taxes to surcharges, altering how costs are assessed and collected.
In the financial sector, HB 4395 requires electronic submission of public securities documents to the attorney general, modernizing a process that has traditionally involved paper filings. HB 4738 and HB 4739 adjust how certain fees are allocated and used, including directing funds toward research and financial education.
SB 1058 affects registered securities market operators by excluding certain transaction rebate payments from franchise tax revenue calculations, a technical change with potentially significant tax implications for affected entities. SB 2206 repeals some tax credits and exemptions while maintaining and expanding the franchise tax credit for qualified research expenses.
Local government finance and infrastructure
Several laws modify how local governments manage assessments, debt, and infrastructure funding. SB 1106 requires municipalities and counties to submit and update assessment rolls for Public Improvement Districts and to post service plans, reinforcing transparency. SB 1453 allows governing bodies to approve debt rates above statutory limits only with a supermajority vote and a clearly stated purpose, adding procedural safeguards.
SB 1502 restricts school districts from adopting certain disaster-related tax rates without voter approval under specified circumstances, reinforcing the role of elections in tax decisions. SB 2520 revises how school districts calculate limits on ad valorem taxes for elderly or disabled homeowners, a group that has long received special consideration under Texas tax law.
Finally, SB 14 requires political subdivisions to credit developers for eligible water and wastewater infrastructure that promotes reuse, conservation, or savings. This measure ties development incentives to long-term resource management, reflecting growing attention to water supply challenges.
A year defined by incremental but meaningful change
Viewed as a whole, the laws taking effect on Jan. 1 do not represent a single sweeping overhaul of Texas law. Instead, they illustrate a pattern of incremental adjustments across many policy areas. Property tax relief and transparency remain central legislative priorities, while emerging issues such as artificial intelligence and digital child protection are beginning to receive structured legal treatment. At the same time, the Legislature continues to fine-tune long-standing systems in insurance, labor, finance, and local governance.
For most Texans, the immediate effects may be subtle rather than dramatic. Some changes will show up in tax bills, others in online app experiences, and still others in how local governments and businesses handle compliance and reporting. Over time, however, these laws will collectively shape how the state balances economic growth, individual protections, and public accountability as it moves into the new year.
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