The bill proposes the elimination of school district maintenance and operations ad valorem taxes, effective January 1, 2028, by adding Section 26.035 to the Tax Code. Under this new provision, school districts will be prohibited from imposing maintenance and operations taxes, although they will still have the authority 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 for students and is separate from state funding.

Additionally, the bill establishes a joint interim committee tasked with evaluating alternative funding mechanisms for public schools, particularly through the use of consumption taxes. The committee, composed of ten members (five from the House and five from the Senate), will assess the feasibility of increasing existing consumption taxes or introducing new ones to support public education. They are required to submit a report by November 1, 2026, detailing their findings and recommendations, including a comprehensive plan for utilizing consumption tax revenue for public school funding. The committee will be dissolved on January 1, 2027.

Statutes affected:
Introduced: ()