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Houston took advantage of a COVID property tax loophole. GOP lawmakers want to close it. By Taylor Goldenstein and Raga Justin, Austin Bureau © Eric Gay, STF / Associated Press This fiscal year was the first real test of a new law limiting large Texas cities and counties to 3.5-percent budget increases annually as the state Legislature tries to tamp down spiraling property tax bills. The majority of local governments seem to have made that revenue cap work, according to data from the Texas comptroller’s office, informal surveys and a review of news clips by Hearst Newspapers. But at least 45 local governments, the city of Houston included, either went over 3.5 percent or considered doing so by using an escape clause written into the legislation that allows a return to the previous maximum of 8 percent during a state disaster. Higher tax increases are possible, but would require voter approval.

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