The bill proposes the elimination of ad valorem taxes in Texas and establishes a joint interim committee to explore alternative taxation methods to replace the revenue lost from this elimination. The committee will consist of ten members, with five appointed by the Speaker of the House and five by the Lieutenant Governor, and is required to convene by November 1, 2025. The committee's responsibilities include conducting a comprehensive study of potential alternative taxes, assessing their feasibility, and preparing a report with findings and recommendations by November 1, 2026. The committee will be dissolved, and the section will expire on January 1, 2027.

Additionally, the bill includes a repeal of Title 1 of the Tax Code, which effectively prohibits the imposition of ad valorem taxes by the state or its political subdivisions, taking effect on January 1, 2035. It clarifies that any tax liabilities incurred before this date will remain enforceable under the previous law. The overall act is set to take effect on September 1, 2025, except for the provisions regarding the repeal of ad valorem taxes, which will come into effect later.

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