New Year Brings New Laws for Texas Residents

A series of significant legislative changes will take effect in Texas starting January 2025, introducing reforms across property taxes, data privacy, vehicle regulations, and more. Here is a closer look at the key laws shaping the Lone Star State’s future: 

Property Tax Relief Act 

The Property Tax Relief Act, or Senate Bill 2, includes provisions to alleviate property tax burdens for homeowners and ensure predictable rates. Sections of the bill, effective in January, will provide additional federal funding to schools struggling with local property tax revenue shortfalls. 

This initiative is particularly beneficial for elderly and disabled homeowners, as it imposes “circuit breaker” limitations on property value appraisals not covered by a homestead exemption.

Lt. Gov. Dan Patrick hailed the legislation as the “biggest property tax cut in history,” marking a milestone for the state’s 5.7 million homeowners.

Enhanced Data Privacy Protections 

The Texas Data Privacy & Security Act (House Bill 4) strengthens consumer data protection by mandating that businesses honor unified opt-out mechanisms for targeted advertising, data sales and profiling. 

Companies failing to comply with transparency requirements face civil penalties, ensuring Texans have more control over their online data. 

Vehicle Inspection Reforms 

House Bill 3297 eliminates the requirement for annual safety inspections for noncommercial vehicles. 

Instead, drivers will pay a $7.50 replacement fee in addition to the registration fee. However, emissions testing remains mandatory in 17 counties, including Dallas, Harris and Tarrant, with Bexar County joining the list in 2026. The streamlined process reflects a shift toward efficiency while maintaining environmental oversight. 

Electric vehicles (EVs), motorcycles and diesel-powered vehicles are exempt from emissions testing, though EV owners are subject to a $200 annual registration fee. 

Judicial System Expansion 

House Bill 3474 will establish the 477th Judicial District in Denton County, addressing the region’s growing legal needs. This addition reflects Texas’ commitment to improving judicial access as its population rises. 

Simplified Criminal Codes 

House Bill 4505 introduces a clarified and reorganized Code of Criminal Procedure, enhancing accessibility for both legal professionals and the public. The revision is part of a broader initiative to streamline and simplify Texas statutes. 

Fiscal Year Adjustment for San Antonio River Authority 

The fiscal year for the San Antonio River Authority will now end on September 30, beginning in 2025, aligning its operations with state recommendations.