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HB 152

Relating to a study of alternative methods of taxation to replace revenue lost to political subdivisions if ad valorem taxes are abolished.

89th Legislature, 2nd Called Session (2025) Introduced by Brent Money

HB 152 mandates a study of alternative taxation methods to replace property tax revenue if ad valorem taxes are abolished in Texas.

Referred to Ways & Means
#commissiontostudymeasurestoabolishadvaloremtaxes(v43uc) #comptrollerofpublicaccounts(v2608) #education--primary&secondary--finance(i0250) #governor(i0375) #interimstudies(i0448) #lieutenantgovernor(s0096) #politicalsubdivisions(i0588) #speakerofthehouse(s0306) #stateagencies #boards&commissions--newlyproposed(i0773) #taxation--city(i0775) #taxation--county(i0780) #taxation--general(i0815) #taxation--property-miscellaneous(i0797) #taxation--schooldistrict(i0785)
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Bill Summary · HB 152

Legislative bill overview

HB 152 directs the state to conduct a comprehensive study examining alternative taxation methods that could replace revenue lost by local governments (cities, counties, school districts) if ad valorem property taxes were eliminated. The bill establishes parameters for evaluating replacement revenue sources without specifying what those alternatives should be.

Why is this important

Property taxes currently fund essential local services including public schools, emergency services, infrastructure, and local government operations. Eliminating ad valorem taxes without viable replacement revenue would create a fiscal crisis for local governments. This study explores whether feasible alternatives exist, which is foundational to any serious property tax reform debate in Texas.

Potential points of contention

  • Replacement revenue adequacy: No alternative tax system has proven equally reliable or sufficient to replace property tax revenue across diverse Texas communities (wealthy suburbs, rural areas, urban centers have different needs)
  • Revenue shifting burden: Alternative taxes (sales tax increases, income tax, franchise taxes) may distribute costs differently across taxpayers and could disadvantage lower-income households or specific industries
  • Local control vs. state control: Property taxes give communities control over their own revenue; state-level replacement mechanisms could reduce local autonomy in budgeting and service provision

Compiled from official sources — confirm details with the bill’s official record.

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