H.B. No. 103 mandates the comptroller of public accounts to conduct a comprehensive review of Texas's sales and use tax structure as outlined in Chapter 151 of the Tax Code. This review will include an inventory of all goods and services currently subject to sales and use tax, those exempt from it, and a comparison with the sales tax structures of other states. Additionally, the comptroller will identify goods and services not currently taxed in Texas that are commonly taxed in other states, are part of growing sectors of the Texas economy, or have potential for inclusion in future tax reform proposals. The review will also encompass an economic and fiscal impact analysis of expanding the sales and use tax base, considering projected revenue gains, distributional effects on income groups and regions, and potential impacts on small businesses and the overall economic competitiveness of Texas.

The comptroller is required to submit a written report detailing the findings of this review to the governor, lieutenant governor, speaker of the house, and members of the legislature by December 1, 2026. The bill will take effect on the 91st day after the end of the legislative session.