WeVote
Log In

Bill

Bill

HB 960

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 (2025) Introduced by Ben Bumgarner and 5 co-sponsors

Texas bill would repeal school property taxes and replace them with state/local value-added taxes, restructuring K-12 education funding from property to consumption-based revenue.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #education #commissionerof(v9954) #education--primary&secondary--finance(i0250) #foundationschoolprogram(s0541) #taxation--property-taxrate(i0794) #taxation--sales(i0800) #taxation--schooldistrict(i0785)
0
WeVote Research Nonpartisan
Bill Summary · HB 960

Legislative bill overview

HB 960 proposes a comprehensive tax restructuring in Texas that would repeal or limit school district property taxes (ad valorem taxes) while introducing new state and local value-added taxes (VAT) to fund education. The bill represents a significant shift from property tax-based school financing to consumption-based taxation, coupled with broader school finance reform.

Why is this important

Texas school funding heavily relies on property taxes, which creates disparities between wealthy and poorer districts. This proposal attempts to address those inequities while reducing property tax burdens, but fundamentally changes how education is funded by shifting the tax base to consumption. The outcome would significantly affect both individual taxpayers and school district revenues across the state.

Potential points of contention

  • Regressivity concerns: Value-added taxes typically burden lower-income households more heavily than property taxes, as consumption represents a larger share of their income
  • Implementation complexity: Transitioning from property-tax-based to VAT-based school funding involves substantial administrative and economic restructuring with uncertain transition effects
  • School funding adequacy: Unclear whether VAT revenue would reliably match or exceed current property tax collections, potentially destabilizing district budgets
  • Local control questions: VAT structure may reduce school districts' fiscal independence compared to local property tax authority

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

Sign in to ask a question.