Politics
Texas Senate Bill 456 Caps City Property Tax Growth and Shifts Costs in Killeen
Killeen homeowners face smaller annual tax increases under the new state limit while city departments prepare for tighter revenue starting in the 2027 budget year.
How we reported this
Texas Senate Bill 456 limits annual property tax revenue growth for cities to 3.5 percent beginning September 1, 2026. The cap directly affects Killeen because the city relies on property taxes for roughly 42 percent of its general fund, according to the most recent city budget document.
The bill passed during the regular session after lawmakers reviewed appraisal data showing Bell County property values rose 11 percent between 2024 and 2025. State records indicate the measure applies to all municipalities above 5,000 residents, placing Killeen under the same formula used for larger Texas cities.
Household and service changes
Residents in Killeen will see their city portion of the tax bill rise more slowly. An average home valued at $245,000 would face an added city tax of about $42 next year instead of the $128 increase recorded in 2025. Local advocates note the change arrives as many military families in the city already manage variable housing allowances tied to Fort Cavazos.
City staff have listed possible reductions in street maintenance contracts and delayed equipment purchases for the parks department. The legislation states that cities may seek voter approval to exceed the cap, yet no such election has been scheduled in Killeen.
Next steps for implementation
The Texas Comptroller’s office will issue guidance to cities by August 15. Killeen finance staff are scheduled to present a revised revenue forecast to the city council on July 28 that incorporates the 3.5 percent limit. Bell County appraisal district records show 68,400 parcels inside city limits will be subject to the new calculation when 2027 tax statements are mailed.