Bill > HB149

This bill proposes to eliminate school district maintenance and operations ad valorem taxes (property taxes used for day-to-day school expenses) beginning January 1, 2028, while simultaneously creating a joint interim committee to study alternative funding methods. The bill establishes a committee composed of five representatives from the Texas House and five senators who will investigate using consumption taxes (like sales taxes) to fund public schools. The committee is tasked with evaluating the potential effectiveness of increasing existing consumption taxes or creating new ones to support public education, and must submit a comprehensive report by November 1, 2026, that includes a plan for implementing this new funding approach. While eliminating the maintenance and operations tax, the bill still allows school districts to impose an enrichment tax up to $0.17 per $100 of property value to provide additional educational resources. The committee will be abolished on January 1, 2027, after submitting its report, and the bill will take effect either immediately with a two-thirds vote in both legislative chambers or 91 days after the legislative session if it does not receive the required supermajority vote.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB149