To the extent that Texas has such a reputation, it's entirely unearned. The state loves sticking its nose into pretty much every area where it doesn't belong; they want to tell you on what days and from whom you can buy groceries; in many fields you're not allowed to start a business without permission from competitors; their gun laws are about as restrictive as they come while still being shall-issue; marijuana and gambling (except for the state-run numbers racket) are still illegal. The city governments of any political leaning aren't any better; Austin still hasn't legalized building housing other than detached single-family in the overwhelming majority of residential-zoned land.

It may have low taxes, but Texas is the furthest thing imaginable from a small-government state.