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 to enhance educational opportunities. Additionally, the bill clarifies that references to a school district's authority to impose maintenance taxes must align with this new prohibition.

To facilitate this transition, the bill establishes a joint interim committee tasked with evaluating alternative funding mechanisms for public schools, particularly through consumption taxes. The committee, composed of five members from the House and five from the Senate, is required to report by November 1, 2026, on the feasibility of using consumption taxes to support public education and to propose a comprehensive plan for implementation. The committee will be dissolved on January 1, 2027, unless further action is taken.

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