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Bill

HB 260

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

89th Legislature, 1st Called Session (2025) Introduced by Sergio Muñoz

Texas bill proposes abolishing property taxes and creates study committee, but offers no plan to replace $60+ billion in annual local government and school funding.

Filed
#interimstudies(i0448) #lieutenantgovernor(s0096) #legislature(i0520) #politicalsubdivisions(i0588) #speakerofthehouse(s0306) #taxation--city(i0775) #taxation--county(i0780) #taxation--property-assessment&collection(i0798) #taxation--sales(i0800) #taxation--schooldistrict(i0785)
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Bill Summary · HB 260

Legislative bill overview

HB 260 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 does not specify replacement revenue sources, leaving the mechanism for funding schools, counties, and municipalities undefined.

Why is this important

Property taxes generate approximately $60+ billion annually for Texas schools, counties, and local governments. Eliminating this revenue source without identified alternatives would create a massive fiscal crisis for public education and local services unless the state legislature identifies compensatory funding. This represents one of the most significant potential tax restructuring proposals in Texas history.

Potential points of contention

  • Replacement funding mechanism: The bill provides no plan for replacing $60+ billion in annual revenue currently funding schools, roads, courts, and emergency services
  • Local government autonomy: Property taxes allow local communities to control funding levels; abolition could shift all education/service funding decisions to the state level
  • Economic impact uncertainty: Changes to property tax policy could affect property values, business investment, and housing affordability differently across regions
  • Implementation timeline: Creating a committee suggests years of study before any changes, but interim committees may lack binding power

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

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