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Bill

HB 106

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

89th Legislature, 2nd Called Session (2025) Introduced by Brian Harrison

Texas bill creates committee to study abolishing property taxes statewide, raising major questions about replacing $50+ billion in school and local government funding.

Filed
#interimstudies(i0448) #lieutenantgovernor(s0096) #legislature(i0520) #politicalsubdivisions(i0588) #speakerofthehouse(s0306) #taxation--city(i0775) #taxation--county(i0780) #taxation--property-assessment&collection(i0798) #taxation--property-miscellaneous(i0797) #taxation--sales(i0800) #taxation--schooldistrict(i0785)
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Bill Summary · HB 106

Legislative bill overview

HB 106 proposes to abolish ad valorem taxes (property taxes) in Texas and establishes a joint interim committee to study and plan the implementation of this abolition. The bill directs the committee to develop a comprehensive plan for eliminating property taxes and potentially replacing them with alternative revenue sources.

Why is this important

Property taxes fund essential local services including public schools, county operations, and municipal services that millions of Texans rely on. Abolishing this revenue source without a viable replacement mechanism could create a significant fiscal crisis for school districts and local governments, or require substantial shifts to state-level taxation. This represents one of the most fundamental restructuring proposals for Texas government finance.

Potential points of contention

  • Education funding crisis: Texas schools depend heavily on property tax revenue; eliminating this without a clear replacement could devastate public education funding and exacerbate existing equity disparities between wealthy and poor districts
  • Local government viability: Cities and counties rely on property taxes for police, fire, infrastructure, and administrative services; the bill provides no mechanism to ensure these services continue
  • Tax replacement uncertainty: The bill doesn't identify what alternative revenue sources would replace an estimated $50+ billion in annual property tax collections, raising questions about feasibility and whether taxes would simply shift to income or sales taxes

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

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