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Texas Bill HB 99 repeals school district property taxes and institutes a 6.72% state value-added tax

Original title: Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, related school finance reform, and directing the comptroller to identify alternatives to local ad valorem taxes; imposing taxes.

Last action · August 20, 2025: Referred to Ways & MeansSponsor: Jay Dean

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Proposed

Texas school districts are prohibited from levying maintenance and operations property taxes starting January 1, 2030, contingent on voter approval of a constitutional amendment, while a new 6.72% state is established to fund public education.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

School districts

School districts lose the authority to levy maintenance and operations ad valorem taxes and receive replacement funding from the state value-added tax.

Directly affected

Consumers

Consumers pay the new 6.72% state value-added tax on goods and services at each stage of production and distribution.

Directly affected

Property owners

Property owners are relieved of paying school district maintenance and operations ad valorem taxes starting in the 2030 tax year.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the comptroller required to do regarding other local property taxes?
The comptroller of public accounts must study the feasibility of replacing all local property taxes levied by counties, municipalities, and special districts with local es and submit a report with recommendations by December 1, 2026.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions
  1. Aug 20, 2025HouseCommittee
    Referred to Ways & Means
  2. Aug 20, 2025HouseIntroduced
    Read first time
  3. Aug 15, 2025HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift98% confidence

Complete Replacement of School Property Taxes with Consumption Tax

The legislation pairs the total elimination of school district maintenance and operations property taxes with the creation of a statewide value-added tax dedicated entirely to public education.

Connected Entities

Foundation School Fund, Jay Dean, Comptroller of Public Accounts
OrganizationFoundation School Fund“Receives all revenue generated by the state value-added tax to fund public educa”Map →
PersonJay Dean“Author of House Bill 99.”Map →
OrganizationComptroller of Public Accounts“Directed to study property tax replacement alternatives and administer the state”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 90)
  • Controversy85
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz65
    Current news / social attention level

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