Texas HB165 proposes to eliminate ad valorem taxes and establish a joint interim committee to study alternatives.

Texas HB165 seeks to eliminate ad valorem taxes and establish a joint interim committee to study alternative tax methods. The committee, composed of five members from the House and five from the Senate, will explore various taxation alternatives to replace lost local revenue. The committee must submit a report with findings and recommendations by November 1, 2026. The bill also repeals Title 1 of the Tax Code and prohibits the state or its political subdivisions from imposing ad valorem taxes.

Texas HB165 proposes to eliminate ad valorem taxes and establish a joint interim committee to study alternatives.

Texas HB165 seeks to eliminate ad valorem taxes and establish a joint interim committee to study alternative tax methods. The committee, composed of five members from the House and five from the Senate, will explore various taxation alternatives to replace lost local revenue. The committee must submit a report with findings and recommendations by November 1, 2026. The bill also repeals Title 1 of the Tax Code and prohibits the state or its political subdivisions from imposing ad valorem taxes.