Austin, TX, December 28, 2025
Several new laws will come into effect across Texas on January 1, 2026, impacting technology, business, education, and public safety. Key regulations include the App Store Accountability Act aimed at protecting minors, a framework for responsible AI governance, increased property tax exemptions for businesses, and reforms in the eviction process. These laws reflect Texas’s commitment to innovation, safety, and support for the local economy. Residents and businesses must stay informed to comply with these changes and capitalize on new opportunities.
New Texas Laws Taking Effect January 1, 2026
Austin, TX – As of January 1, 2026, several new laws will be implemented across Texas, impacting various sectors including technology, business, education, and public safety. It is crucial for residents and business owners to familiarize themselves with these changes to ensure compliance and take advantage of potential new opportunities.
These new regulations, designed to enhance safety, improve educational assessments, and support local businesses, reflect a continuing trend in Texas towards fostering innovation and reducing unnecessary red tape. By streamlining processes, lawmakers aim to encourage entrepreneurial activities that will fuel economic growth in our communities.
Technology and Data Privacy
App Store Accountability Act
The App Store Accountability Act requires app stores to verify users’ ages and obtain parental consent before minors can download or purchase apps. This law aims to enhance child safety in digital environments. App store operators, including major players like Google and Apple, have raised concerns regarding privacy implications. This law is set to take effect on January 1, 2026.
Responsible Artificial Intelligence Governance Act
The Responsible Artificial Intelligence Governance Act establishes a framework for the ethical development and deployment of AI systems in Texas. It prohibits the creation of AI that promotes self-harm, violence, or criminal activity, and restricts the use of biometric data without consent. Penalties for violations can range from $10,000 to $200,000, providing a financial incentive to adhere to the law. Additionally, a “regulatory sandbox” is introduced for testing innovative AI systems.
Business and Taxation
Property Tax Exemption for Business Inventory
House Bill 9 increases the property tax exemption for business inventory from $2,500 to $125,000. This change aims to provide significant relief to businesses by reducing their taxable inventory value, allowing them to reinvest in growth and innovation. However, local governments may face a reduction in revenue, estimated at $442 million in fiscal year 2027, unless they adjust tax rates accordingly.
Education
Replacement of STAAR Test
House Bill 8 replaces the State of Texas Assessment of Academic Readiness (STAAR) test with three shorter assessments administered throughout the school year. This change seeks to provide a more comprehensive evaluation of student progress and reduce the emphasis on a single high-stakes test. Such a shift may empower educators and students alike by fostering a more holistic approach to learning.
Public Safety and Law Enforcement
Eviction Process Reforms
Senate Bill 38 reforms Texas’s eviction process by clarifying court procedures during appeals and strengthening landlord protections when government rental assistance is involved. The bill mandates that tenants appealing eviction judgments must pay rent into the court registry to retain possession. Additionally, the law allows either party to contest the required amount if rent was partially covered by a government agency.
Vehicle Safety
Elimination of Mandatory Vehicle Safety Inspections
Effective January 1, 2026, non-commercial vehicles will no longer be required to undergo annual safety inspections. Instead, vehicle owners will pay a $7.50 fee, termed the “inspection program replacement fee,” when registering their vehicles. This change is designed to streamline the registration process and reduce costs for vehicle owners. However, it’s important to note that emissions testing may still be required in certain counties, such as Travis, Harris, and Dallas, depending on local ordinances.
Key Features of the New Texas Laws
| Law | Effective Date | Key Provisions |
|---|---|---|
| App Store Accountability Act | January 1, 2026 | Requires app stores to verify users’ ages and obtain parental consent before minors can download or purchase apps. |
| Responsible Artificial Intelligence Governance Act | January 1, 2026 | Establishes ethical guidelines for AI development, prohibiting harmful applications and unauthorized use of biometric data. |
| Property Tax Exemption for Business Inventory | January 1, 2026 | Increases the property tax exemption for business inventory from $2,500 to $125,000, providing relief to businesses. |
| Replacement of STAAR Test | December 2025 | Replaces the STAAR test with three shorter assessments throughout the school year to better evaluate student progress. |
| Eviction Process Reforms | January 1, 2026 | Clarifies court procedures during eviction appeals and strengthens landlord protections when government rental assistance is involved. |
| Elimination of Mandatory Vehicle Safety Inspections | January 1, 2026 | Non-commercial vehicles no longer require annual safety inspections; a $7.50 fee replaces the inspection requirement. |
Frequently Asked Questions (FAQ)
What is the App Store Accountability Act, and when does it take effect?
The App Store Accountability Act requires app stores to verify users’ ages and obtain parental consent before minors can download or purchase apps. This law aims to enhance child safety in digital environments. App store operators, including Google and Apple, have expressed concerns about privacy implications. The law is set to take effect on January 1, 2026.
What does the Responsible Artificial Intelligence Governance Act entail?
The Responsible Artificial Intelligence Governance Act establishes a framework for the ethical development and deployment of AI systems in Texas. It prohibits the creation of AI that promotes self-harm, violence, or criminal activity, and restricts the use of biometric data without consent. Penalties for violations range from $10,000 to $200,000. This act also introduces a “regulatory sandbox” for testing innovative AI systems.
How does House Bill 9 affect property tax exemptions for businesses?
House Bill 9 increases the property tax exemption for business inventory from $2,500 to $125,000. This change aims to provide relief to businesses by reducing their taxable inventory value. However, local governments may experience a reduction in revenue, estimated at $442 million in fiscal year 2027, unless they adjust tax rates accordingly.
What changes are being made to student assessments in Texas?
House Bill 8 replaces the State of Texas Assessment of Academic Readiness (STAAR) test with three shorter assessments administered throughout the school year. This change seeks to provide a more comprehensive evaluation of student progress and reduce the emphasis on a single high-stakes test.
What reforms are being implemented in the eviction process?
Senate Bill 38 reforms Texas’s eviction process by clarifying court procedures during appeals and strengthening landlord protections when government rental assistance is involved. The bill requires tenants appealing eviction judgments to pay rent into the court registry to retain possession and allows either party to contest the required amount if rent was partially paid by a government agency. The law applies to eviction suits filed on or after January 1, 2026.
What changes are being made to vehicle safety inspections?
Effective January 1, 2026, non-commercial vehicles will no longer require annual safety inspections. Instead, a $7.50 fee, termed the “inspection program replacement fee,” will be added to vehicle registration fees. This change is intended to streamline the registration process and reduce costs for vehicle owners. However, emissions testing may still be required in certain counties, such as Travis, Harris, and Dallas, due to local ordinances. Vehicle owners should check their county’s regulations to determine if emissions testing remains mandatory.
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Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
