Bill > HB166

This bill aims to eliminate school district maintenance and operations ad valorem taxes (property taxes used for basic school operating expenses) starting January 1, 2028, while creating a joint interim committee to explore alternative funding methods. The bill establishes a temporary committee composed of five representatives from the House and five senators who will investigate using consumption taxes (like sales taxes) to fund public schools. The committee will evaluate the effectiveness of increasing or expanding existing consumption taxes, or introducing new consumption taxes, to support public education. By November 1, 2026, the committee must provide a comprehensive report to the legislature detailing a plan for using consumption tax revenue to fund schools and proposing necessary legislation. While eliminating maintenance and operations taxes, the bill still allows school districts to impose an enrichment tax up to $0.17 per $100 of property value to provide additional educational opportunities. The committee will be dissolved on January 1, 2027, and the bill will take effect either immediately if it receives a two-thirds vote in both legislative chambers, or 91 days after the legislative session if it does not.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=892&Bill=HB166