Dallas, Texas, December 30, 2025
As the new year approaches, several significant laws will take effect in Texas, impacting areas such as technology, taxation, and public safety. These legislative changes include the App Store Accountability Act, which aims to enhance child safety in digital environments, and the Responsible Artificial Intelligence Governance Act, which establishes ethical guidelines for AI development. Additionally, House Bill 9 significantly increases the property tax exemption for business inventory, providing relief for small businesses. Residents are encouraged to familiarize themselves with these changes to maximize potential benefits and ensure compliance.
New Texas Laws Taking Effect January 1, 2026: Key Changes for Residents and Businesses
Texas Enters 2026 with Updates to Technology, Taxes, Education, and More
Dallas, Texas – As the new year begins, several important laws go into effect across Texas on January 1, 2026. These changes touch on technology regulation, tax relief for businesses, education assessments, vehicle requirements, eviction procedures, immigration enforcement, and more. Many of these reforms aim to reduce regulatory burdens, promote innovation, and support local entrepreneurs and small businesses while addressing modern challenges in safety and ethics.
App Store Accountability Act
The App Store Accountability Act requires app stores to verify user ages and obtain parental consent before minors can download or purchase apps. The law seeks to improve child safety online, though major platforms like Google and Apple have raised concerns about privacy and implementation challenges.
Responsible Artificial Intelligence Governance Act
This act sets ethical standards for AI development, banning harmful uses and unauthorized biometric data collection. It includes a regulatory sandbox for safe innovation testing, with violation penalties ranging from $10,000 to $200,000. The measure balances technological progress with responsible oversight.
Property Tax Exemption Increase (House Bill 9)
House Bill 9 raises the property tax exemption for business inventory from $2,500 to $125,000. This substantial increase offers meaningful relief to small businesses by lowering taxable inventory values, though local governments may see revenue impacts (estimated at $442 million in FY 2027) unless tax rates are adjusted.
Replacement of STAAR Test (House Bill 8)
The STAAR test is replaced with three shorter assessments spread throughout the school year. This shift aims to provide ongoing progress tracking for educators and parents while reducing the stress of a single high-stakes exam.
Eviction Process Reforms (Senate Bill 38)
Senate Bill 38 clarifies appeal procedures and bolsters landlord protections related to government rental assistance. Tenants appealing an eviction must deposit rent into the court registry to remain in possession, with provisions for contesting amounts if partial government aid was received. Applies to suits filed on or after January 1, 2026.
Elimination of Mandatory Vehicle Safety Inspections
Non-commercial vehicles no longer need annual safety inspections. A $7.50 “inspection program replacement fee” is added to registration costs. Emissions testing may still apply in counties like Dallas due to local rules, simplifying the process for most drivers.
Other Notable Changes
- New Immigration Enforcement (Senate Bill 8): Requires county sheriffs operating jails to participate in the federal 287(g) program for ICE cooperation.
- R&D Tax Credit Update (Senate Bill 2206): Aligns the credit more closely with federal standards, offering up to 8.722% reimbursement on qualified expenses to attract innovation investment.
- Newborn Enrollment Extension (Senate Bill 896): Gives parents an extra 60 days to continue medical coverage for newborns.
- Intangible Personal Property Tax Exemption (House Bill 22): Removes taxation on non-physical assets like goodwill.
- Stock-Exchange Activity Exemption (Senate Bill 1058): Exempts certain trading from franchise tax to boost financial services.
- School District Disaster Tax Limits (Senate Bill 1502): Requires voter approval for tax increases under disaster provisions.
- Texas AI Council (House Bill 149): Creates a council to monitor government AI use and ensure transparency and ethics.
Conclusion
These 2026 laws reflect Texas’s focus on balancing innovation, economic growth, and public safety. Small businesses, families, and residents stand to benefit from tax relief, reduced regulations, and modernized systems. Staying informed about these changes helps ensure compliance and maximizes available advantages in the year ahead.
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. However, app store operators, including Google and Apple, have expressed concerns about privacy implications. It takes effect January 1, 2026.
What does the Responsible Artificial Intelligence Governance Act entail?
The Responsible Artificial Intelligence Governance Act establishes ethical guidelines for AI development, prohibiting harmful applications and unauthorized use of biometric data. This act also introduces a “regulatory sandbox” for testing innovative AI systems. Penalties for violations range from $10,000 to $200,000.
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.
How does the elimination of mandatory vehicle safety inspections impact vehicle owners?
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, including Dallas, due to local ordinances.
Key Features of 2026 Texas Laws
| Law | Description | Impact |
|---|---|---|
| App Store Accountability Act | Requires age verification and parental consent for app downloads by minors. | Enhances child safety, but raises privacy concerns. |
| Responsible Artificial Intelligence Governance Act | Sets ethical guidelines for AI development and establishes penalties. | Promotes responsible innovation in AI technologies. |
| Property Tax Exemption for Business Inventory | Increases exemption for inventory from $2,500 to $125,000. | Provides financial relief to small businesses. |
| Replacement of STAAR Test | Replaces STAAR with three shorter assessments throughout the year. | Reduces high-stakes testing pressure on students and educators. |
| Eviction Process Reforms | Clarifies appeals process and strengthens landlord protections. | Aims for balance between tenant rights and landlord interests. |
| Elimination of Vehicle Safety Inspections | Non-commercial vehicles no longer need annual safety inspections. | Streamlines vehicle registration and reduces costs for owners. |
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Author: STAFF HERE DALLAS WRITER
The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas 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 the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
