WeVote
Log In

Bill

Bill

HB 149

Relating to the elimination of school district maintenance and operations ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

89th Legislature, 1st Called Session (2025) Introduced by Will Metcalf

HB 149 would eliminate school property taxes for maintenance and operations, requiring a committee to study replacement funding without specifying how schools would recover $30+ billion in lost revenue.

Filed
#education--primary&secondary--finance(i0250) #interimstudies(i0448) #lieutenantgovernor(s0096) #legislature(i0520) #speakerofthehouse(s0306) #taxation--sales(i0800) #taxation--schooldistrict(i0785)
0
WeVote Research Nonpartisan
Bill Summary · HB 149

Legislative bill overview

HB 149 proposes eliminating school district maintenance and operations (M&O) ad valorem taxes—the primary local property tax funding mechanism for schools—and establishes a joint interim committee to study how to phase out or replace this revenue source. The bill does not specify replacement funding mechanisms, leaving the actual implementation and financial restructuring for the committee to determine.

Why is this important

School M&O taxes currently generate approximately $30+ billion annually for Texas public schools, making them the largest local funding source. Eliminating this tax without a concrete replacement plan could create a significant fiscal crisis for school districts unless the state provides substantial new funding, potentially affecting teacher salaries, facility maintenance, and educational programs across all districts.

Potential points of contention

  • Funding gap uncertainty: The bill eliminates a major revenue source without specifying how schools would be funded, raising questions about whether state budget increases would compensate or create shortfalls
  • Equity concerns: Property-wealthy districts currently generate more M&O revenue; elimination could either require massive state redistribution or reduce per-pupil spending in less affluent areas
  • Implementation timeline: Creating a committee to study elimination rather than proposing concrete solutions delays clarity on feasibility, cost, and transition logistics

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

Sign in to ask a question.