Policy · June 30, 2026 · Steven Owen

How to get your land out of a city’s ETJ in Texas

Texas SB 2038 lets a landowner petition out of a city’s extraterritorial jurisdiction (ETJ) in about 45 days — and the city has no discretion to say no if the petition is valid. You file a petition describing your tract; the city has 45 days to release it or declare the petition invalid, and if it does nothing, your land is released by operation of law. The 2025 wrinkle: HB 2512 (effective September 1, 2025) added eligibility limits — lots under 12 acres can no longer be released alone (only bundled with other land), and a single lot inside a 25+ lot subdivision is excluded. For owners of larger tracts, the door is still wide open; for small lots, the path now usually runs through a bundled petition.

What the ETJ is — and why owners want out

A city’s extraterritorial jurisdiction is an unincorporated band of land just outside its limits where the city has never collected a dollar of your property tax but still controls how you subdivide and, in many cases, develop your land. For a landowner with a development plan, the ETJ can mean city plat rules, impervious-cover caps, and approval timelines applied to property the city doesn’t serve. SB 2038 was the Legislature’s answer: a way for owners to simply opt out.

How the SB 2038 release actually works

SB 2038 (in effect since September 1, 2023) added Subchapters D and E to Chapter 42 of the Texas Local Government Code — a petition path and an election path. The petition path is the one most owners use:

  1. The owner of a “majority in value” of the area petitions. Because you define the area as your own tract, a single owner can petition to release just their own property — no neighborhood vote required.
  2. You file the petition with the city, with the required boundary description and map of the area to be released.
  3. The city has 45 days to release the area or notify you that the petition is invalid.
  4. If the city does nothing, the land is released by operation of law. The city has no discretion to deny a valid petition — there is no council vote that can stop it.

Who still qualifies after HB 2512 (the 2025 change)

This is the part that has changed and that most online summaries still get wrong. HB 2512 took effect September 1, 2025 and added exclusions to the petition path for any petition filed on or after that date:

The practical takeaway for 2026: if you own a tract of 12 acres or more, the petition path is still clean and fast. If you own a smaller lot, you’re usually looking at a bundled petition with neighbors, which means coordinating a majority in value across multiple owners — doable, but it takes planning.

Should you actually leave the ETJ?

Getting out is not automatically the right move — it depends entirely on what you’re trying to do with the land. Leaving removes the city’s subdivision and land-use control, which can unlock density, cover, or uses the city was limiting. But three things deserve a hard look first:

In other words, the petition is the easy part. The judgment — are you eligible, and does leaving help your actual plan? — is where the value is.

How SCORE helps

SCORE Property Group works the ETJ release as a land problem, not a form-filing exercise: we run the eligibility and exclusion review (several HB 2512 factors aren’t visible on a map), prepare the boundary description and petition package, coordinate any bundled-petition majority among neighboring owners, and advise on whether release actually serves your development goals. We are a commercial real estate and land specialist — not a law firm — and we coordinate with licensed counsel where a matter calls for it. See our ETJ release service for how the done-for-you process works.

Wondering if your land qualifies?

Tell us the property and what you want to build. We’ll check eligibility under SB 2038 and HB 2512 and tell you honestly whether leaving the ETJ helps.

See the ETJ release service Ask about your property

Current as of June 2026. SB 2038 (88th Legislature, effective 9/1/2023) and HB 2512 (89th Legislature, effective 9/1/2025) amend Texas Local Government Code Chapter 42. This is general information, not legal advice; SCORE Property Group is not a law firm. Eligibility and exclusions are fact-specific — confirm with qualified counsel before filing. Related: ETJ Release service · Development Land · Texas Focus.