The bill proposes the elimination of school district maintenance and operations ad valorem taxes, effective January 1, 2028, by adding a new section to the Tax Code. Specifically, it prohibits school districts from imposing maintenance and operations taxes, while allowing them to levy an enrichment tax at a maximum rate of $0.17 per $100 of taxable property value. This enrichment tax is intended to provide additional revenue for enhancing educational opportunities and is separate from state funding. The bill also clarifies that references to maintenance taxes in existing laws should align with this new prohibition.

Additionally, the bill establishes a joint interim committee tasked with evaluating the feasibility of using consumption taxes to support public schools in Texas. This committee, composed of five members from the House and five from the Senate, will assess various aspects of consumption taxes, including their effectiveness and impact on residents and businesses. The committee is required to submit a report by November 1, 2026, detailing its findings and proposing a comprehensive plan for utilizing consumption tax revenue for public school support. The committee will be dissolved on January 1, 2027.

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