Texas HB2220 proposes to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform.

Texas HB2220 aims to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform school finance. The bill prohibits school districts from imposing ad valorem taxes for maintenance and operations purposes starting January 1, 2030, contingent on a constitutional amendment. It allows school districts to impose an enrichment value added tax up to 0.5% to enrich educational opportunities. The bill also imposes a state value added tax at a rate of 6.72% and allows political subdivisions to impose local value added taxes up to 2%.

Texas HB2220 proposes to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform.

Texas HB2220 aims to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform school finance. The bill prohibits school districts from imposing ad valorem taxes for maintenance and operations purposes starting January 1, 2030, contingent on a constitutional amendment. It allows school districts to impose an enrichment value added tax up to 0.5% to enrich educational opportunities. The bill also imposes a state value added tax at a rate of 6.72% and allows political subdivisions to impose local value added taxes up to 2%.