As the new year begins, the state of Texas is implementing a series of new laws that will affect commercial property taxes, immigration enforcement by local law enforcement agencies, and eviction procedures impacting tenants and property owners across the state. These measures take effect starting January 1, 2026.
Among the most notable changes is House Bill 9, which raises the tax exemption cap on business inventory to $125,000, up from just $2,500. Supporters describe the move as direct relief for businesses, while budget officials estimate it could reduce local tax revenues by approximately $442 million in fiscal year 2027 if local governments do not adjust their tax rates, according to Austin American-Statesman.
Immigration Enforcement and Eviction Measures
Another major measure, Senate Bill 8, requires county sheriffs who operate jails to cooperate with U.S. Immigration and Customs Enforcement (ICE) under the 287(g) program, which grants local law enforcement limited authority in immigration enforcement. Participating counties may apply for state grants ranging from $80,000 to $140,000 to cover related costs.
Supporters argue the law strengthens public safety, while critics warn it could lead to racial profiling affecting both immigrants and U.S. citizens. If a county sheriff refuses to comply, the state attorney general is authorized to take legal action and impose potential penalties.
In the same context, Senate Bill 38 goes into effect to accelerate eviction proceedings involving unlawfully occupied properties. The law requires justice courts to hold hearings within 10 to 21 days of a case being filed and limits court review strictly to whether the property is being occupied illegally, excluding ownership disputes or counterclaims. Judges are also allowed to issue summary judgments in clear-cut cases.
Eviction Procedures and Legal Concerns
Additionally, the law strengthens notice requirements to ensure eviction notices are delivered either in person or posted in clearly visible locations.
Supporters say these changes give property owners a faster legal path to regain control of their properties. However, housing advocates warn that reducing procedural protections could increase the risk of unlawful evictions. Others have criticized a provision that prevents the governor and the Texas Supreme Court from suspending or modifying eviction procedures during emergencies, as was done during the COVID-19 pandemic.
One provision of the law took effect in September, while the remaining measures officially come into force at the start of January.