WeVote
Log In

Bill

Bill

HB 92

Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.

89th Legislature, 2nd Called Session (2025) Introduced by Steve Toth

Texas bill repeals school property taxes and establishes new value-added taxes to fund education, shifting tax burden from property owners to consumers.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #education #commissionerof(v9954) #education--primary&secondary--finance(i0250) #foundationschoolprogram(s0541) #legislature(i0520) #taxation--property-taxrate(i0794) #taxation--sales(i0800) #taxation--schooldistrict(i0785)
0
WeVote Research Nonpartisan
Bill Summary · HB 92

Legislative bill overview

HB 92 proposes a major tax restructuring in Texas that would repeal or limit certain state and local taxes—particularly school district property taxes—while establishing new value-added taxes (VAT) at state and local levels. The bill simultaneously implements school finance reform, creating a significant shift in how Texas funds education and local government operations.

Why is this important

School property taxes represent a major revenue source for Texas school districts and local governments, affecting property owners and education funding statewide. Replacing this system with VAT would fundamentally change the tax burden distribution, potentially shifting costs from property owners to consumers on goods and services, with unclear impacts on different income groups and regional economies.

Potential points of contention

  • Tax burden shift: Moving from property taxes to consumption-based VAT may increase costs for lower-income households who spend larger percentages of income on goods and services, while potentially benefiting property owners
  • Implementation complexity: Establishing new VAT systems involves significant administrative challenges, compliance costs for businesses, and potential economic disruption during transition
  • School funding adequacy: Whether new VAT revenue would reliably and sufficiently fund education compared to current property tax system, especially given variable consumer spending across economic cycles
  • Local government revenue: Unclear how local services beyond schools would be funded under this restructured system and whether municipalities would have adequate resources

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

Sign in to ask a question.