Data compiled by the Texas Comptroller indicates that in 2024, at least 179 taxing entities in Texas increased property taxes by more than 3.5%. While this limit applies to cities and counties, it does not extend to certain special taxing districts within the state.

According to the Texas Comptroller, an annual list is published on its website detailing each taxing entity's total taxable values, no-new-revenue and voter-approval tax rates, approved rates, and total tax levies.

In 2019, the Texas Legislature passed Senate Bill 2 (SB2), spearheaded by Senator Paul Bettencourt of Senate District 7. The bill included provisions aimed at curbing property tax growth in Texas, notably capping annual increases at 3.5% for most taxing entities. However, certain special districts such as Emergency Service Districts (ESDs) and Municipal Utility Districts (MUDs) were exempt from these restrictions.

Of the over 2,000 special districts in Texas, 179 exceeded a 3.5% increase from the no-new-revenue tax rate. More than half of these increases were attributed to ESDs and MUDs.

Bill Longley of the Texas Municipal League Legislative Counsel explained that an ESD is a political subdivision that "generally supports or provides local emergency services," which may include emergency medical services and fire protection. These districts have "the ability to impose both a sales and use tax and a property tax" to fund their services. A MUD is described as "a state government entity that provides utility services to certain defined areas," which can encompass water, sewage, drainage, parks, and roads.

According to data from the Comptroller’s office, Walker County ESD #3 raised its property tax rate more than 25% above the statutory limit of 3.5% applicable to cities and counties. Similarly, Medina County ESD #3 increased its tax rate by over 60% beyond this threshold.