Taylor City Council gets briefing on 89th session
New laws passed by the 89th Legislature including changes to the tax code could take a toll on Taylor’s municipal finances, an official said.
Assistant City Manager Carly Pearson gave a breakdown of the bills most likely to affect the town during the Thursday, July 24, City Council meeting at City Hall, 400 Porter St.
Most laws take effect Sept. 1. “This session was another doozy. It wasn’t quite as bad as 2021, but it was worse than 2023. So, we’ll see. We’re trending downwards in the Legislature here,” Pearson said. Though the regular Legislature gaveled out June 2, Gov. Greg Abbott has called a special session to tackle issues ranging from THC sales to flood recovery.
The Texas Municipal League works with local cities including Taylor to stay on top of proposed legislation and what those bills can mean for local governments, Pearson said.
“By the time both chambers adjourned the session, they sent a total of 1,231 bills and joint resolutions to the governor for his signature. Roughly 260 of those will have a direct impact on Texas cities,” the TML said in a nearly 100-page summary.
“There were almost 9,000 bills filed,” Pearson said. “I personally tracked about 1,283 bills.”
Approved legislation that could have an impact on Taylor include:
• House Bill 9 adjusts the tax code to increase the exemption on personal property used for a business from less than $2,500 to $125,000. It will become effective Jan. 1, 2026, if approved by voters in November.
Pearson said this bill could reduce Taylor’s property tax revenue by $1.4 million.
• Senate Bill 924 prohibits cities from charging a cable-franchise fee to a cable or video service provider. Currently the provider pays the city 5% of their gross revenue. Taylor could lose $450,000 under this bill, which becomes effective Sept. 1.
• HB 24 outlines zoning protest requirements, affecting the way the community can have an impact on undesired land usages near them, as is happening with Blueprint Data Centers and the south Taylor community. The bill appears to say in part that if 60% of owners within 200 feet of a project submit written protests, the council would need a threefourths
majority vote to pass the bill against the wishes of those residents.
“The wording of this one is purposefully confusing, but really what it does is it increases the threshold for people to protest land uses around them that they don’t like, once again making it more difficult for people to voice their opposition to the land use in their area,” Pearson said.
• SB 1173 raises the competitive bidding threshold from $50,000 to $100,000 and is effective Sept. 1.
“Cities have lobbied to raise that for several sessions now because you hit $50,000 every time you blink with inflation now,” Pearson said. “So, you won’t have to go out to bid unless you’re going to pass that $100,000 threshold.”
• HB 500 appropriates all unspent and unallocated balances, about $572 million, from appropriations made last session and transfers that money to the Texas Semiconductor Innovation Fund (also known as the federal CHIPS Act).
“There’s a lot of money coming down for the Chips Act. This was supported and this will impact (Samsung Austin Semiconductor), obviously, so that’s good for Taylor,” Pearson said.
• HB 2844 provides standardized licensing, operational practices and inspections statewide for food trucks, restricting Taylor’s authority over food-truck regulation.
• HB 21 requires housing finance corporations operating outside their jurisdiction to be approved by a local governing body. Previously these out-of-town corporations set up housing while taking existing property out of a city’s tax base.
• SB 7 introduces a new Office of Water Supply Conveyance Coordination within the Texas Water Development Board to help with water infrastructure.
• SB 1883 limits cities’ updates of impact fees to once every three years. Officials said this can be a challenge for fast-growth municipalities requiring flexibility to evaluate large developments.
• HB 1522 Governmental bodies must provide notices for public meetings within three days. For Taylor’s Thursday meetings, notices must be posted by 5 p.m. Tuesday. The change, however, could affect special meetings held on Mondays or Tuesdays.
• SB 1062 allows the city to communicate legal notices by alternate methods including text or email if residents opt in.
Pearson told council members her office will work with Texas Municipal League, professional organizations, legal counsel and city departments to monitor and implement the new laws as they become effective.
