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New State Laws in Texas Set to Impact Residents and Businesses

Texas state legislature building with people discussing new laws and regulations.

Texas, November 27, 2025

As December approaches, Texas will implement several new state laws affecting various sectors. Key changes include the elimination of mandatory vehicle safety inspections, an increase in property tax exemptions for businesses, enhanced data privacy rights for consumers, and reforms in the education system. These laws aim to streamline processes, reduce costs, and empower Texans with greater control over their personal information while also addressing local government revenues and community support.

San Antonio, Texas: New State Laws Effective December and January

As December approaches, several new state laws are set to take effect in Texas, bringing significant changes across various sectors. Below is an overview of key legislation and its anticipated impact on residents and businesses.

Vehicle Safety Inspections

Elimination of Mandatory Vehicle Safety Inspections

Effective January 1, 2025, Texas will eliminate the requirement for annual vehicle safety inspections for non-commercial vehicles. Instead, drivers will pay a $7.50 inspection program replacement fee during vehicle registration. This change aims to streamline the registration process and reduce costs for vehicle owners. However, emissions testing will remain mandatory in certain counties, including Harris, Dallas, and Travis. For a comprehensive list of affected counties, please refer to the Texas Department of Motor Vehicles website.

Property Tax Relief

Property Tax Exemption Increase

Starting January 1, 2025, House Bill 9 will increase the property tax exemption for business inventory from $2,500 to $125,000. This adjustment is expected to provide significant tax relief to businesses, particularly small and medium-sized enterprises, by reducing their taxable property value. Local governments may experience a reduction in revenue, estimated at $442 million in fiscal year 2027, unless they adjust tax rates accordingly.

Data Privacy and Security

Enhanced Consumer Data Privacy Rights

House Bill 4, known as the Texas Data Privacy and Security Act, will grant Texans greater control over their personal data. Effective January 1, 2025, consumers will have the right to access, correct, delete, and obtain copies of their personal data collected by businesses. Additionally, businesses must be transparent about their data practices and obtain consent before collecting sensitive information. This law aims to strengthen consumer trust and protect personal information in the digital age.

Education System Reforms

Replacement of STAAR Test with New Assessments

Beginning in December 2025, House Bill 8 will replace the State of Texas Assessment of Academic Readiness (STAAR) test with three shorter assessments administered throughout the school year. This change is designed to reduce student stress and provide more timely feedback on academic progress. The new testing format will be implemented in phases, with detailed schedules provided by the Texas Education Agency.

Immigration Enforcement

Mandatory Cooperation with ICE

Senate Bill 8 will require sheriffs in counties with populations over 100,000 to cooperate with U.S. Immigration and Customs Enforcement (ICE) in enforcing immigration laws. This includes participating in the 287(g) program, which allows local law enforcement to perform certain immigration enforcement functions. Counties will be eligible for grants ranging from $80,000 to $140,000 to support their participation in this program.

Healthcare Access

Over-the-Counter Availability of Ivermectin

Effective December 2025, a new law will permit the purchase of the anti-parasite drug ivermectin without a prescription. This change aims to increase accessibility to the medication for individuals seeking treatment for parasitic infections. However, consumers are advised to consult healthcare professionals before using ivermectin to ensure appropriate and safe usage.

Additional Legislative Changes

Property Tax Relief Act

Senate Bill 2, known as the Property Tax Relief Act, will provide additional state funding to offset property tax revenue lost due to reduced tax increase limits for elderly or disabled homeowners. This measure aims to alleviate the financial burden on vulnerable populations and ensure continued support for local education systems.

For more detailed information on these laws and their implementation, residents are encouraged to visit the official Texas Legislature website or consult local government resources.

Frequently Asked Questions (FAQ)

What is the new vehicle inspection requirement in Texas?

Effective January 1, 2025, Texas will eliminate the requirement for annual vehicle safety inspections for non-commercial vehicles. Instead, drivers will pay a $7.50 inspection program replacement fee during vehicle registration. Emissions testing will remain mandatory in certain counties, including Harris, Dallas, and Travis. For a comprehensive list of affected counties, please refer to the Texas Department of Motor Vehicles website.

How does the Property Tax Exemption Increase affect businesses?

Starting January 1, 2025, House Bill 9 will increase the property tax exemption for business inventory from $2,500 to $125,000. This adjustment is expected to provide significant tax relief to businesses, particularly small and medium-sized enterprises, by reducing their taxable property value. Local governments may experience a reduction in revenue, estimated at $442 million in fiscal year 2027, unless they adjust tax rates accordingly.

What rights does the Texas Data Privacy and Security Act grant consumers?

Effective January 1, 2025, House Bill 4 will grant Texans greater control over their personal data. Consumers will have the right to access, correct, delete, and obtain copies of their personal data collected by businesses. Additionally, businesses must be transparent about their data practices and obtain consent before collecting sensitive information. This law aims to strengthen consumer trust and protect personal information in the digital age.

What changes are being made to the education system in Texas?

Beginning in December 2025, House Bill 8 will replace the State of Texas Assessment of Academic Readiness (STAAR) test with three shorter assessments administered throughout the school year. This change is designed to reduce student stress and provide more timely feedback on academic progress. The new testing format will be implemented in phases, with detailed schedules provided by the Texas Education Agency.

What does Senate Bill 8 require regarding immigration enforcement?

Senate Bill 8 will require sheriffs in counties with populations over 100,000 to cooperate with U.S. Immigration and Customs Enforcement (ICE) in enforcing immigration laws. This includes participating in the 287(g) program, which allows local law enforcement to perform certain immigration enforcement functions. Counties will be eligible for grants ranging from $80,000 to $140,000 to support their participation in this program.

Can I purchase ivermectin without a prescription in Texas?

Effective December 2025, a new law will permit the purchase of the anti-parasite drug ivermectin without a prescription. This change aims to increase accessibility to the medication for individuals seeking treatment for parasitic infections. However, consumers are advised to consult healthcare professionals before using ivermectin to ensure appropriate and safe usage.

Key Features of New Texas Laws Effective December and January

Law Effective Date Key Provisions
Vehicle Safety Inspection Elimination January 1, 2025 Eliminates mandatory annual safety inspections for non-commercial vehicles; introduces a $7.50 inspection program replacement fee during registration; emissions testing remains in certain counties.
Property Tax Exemption Increase January 1, 2025 Raises property tax exemption for business inventory from $2,500 to $125,000; provides tax relief to businesses; potential revenue reduction for local governments.
Texas Data Privacy and Security Act January 1, 2025 Grants consumers rights to access, correct, delete, and obtain copies of personal data; businesses must be transparent and obtain consent before collecting sensitive information.
Replacement of STAAR Test December 2025 Replaces STAAR test with three shorter assessments throughout the school year; aims to reduce student stress and provide timely academic feedback.
Mandatory Cooperation with ICE January 1, 2025 Requires sheriffs in counties over 100,000 population to cooperate with ICE; participation in 287(g) program; eligibility for grants to support enforcement actions.
Over-the-Counter Ivermectin December 2025 Permits purchase of ivermectin without a prescription; increases accessibility for parasitic infection treatment; consumers advised to consult healthcare professionals.


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STAFF HERE AUSTIN WRITER
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.

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