Texas HB260 proposes to abolish ad valorem taxes and establishes a joint interim committee to study and recommend alternatives.

Texas HB260 seeks to prohibit the state and its political subdivisions from imposing ad valorem taxes, effective January 1, 2031. The bill creates a joint interim committee composed of five members from the House of Representatives and five from the Senate, tasked with studying how to replace lost local tax revenue with sales and use tax revenue. The committee must submit a report by December 1, 2026, and will be abolished on January 1, 2027. The bill's provisions only take effect if a related constitutional amendment is approved by voters.

Texas HB260 proposes to abolish ad valorem taxes and establishes a joint interim committee to study and recommend alternatives.

Texas HB260 seeks to prohibit the state and its political subdivisions from imposing ad valorem taxes, effective January 1, 2031. The bill creates a joint interim committee composed of five members from the House of Representatives and five from the Senate, tasked with studying how to replace lost local tax revenue with sales and use tax revenue. The committee must submit a report by December 1, 2026, and will be abolished on January 1, 2027. The bill's provisions only take effect if a related constitutional amendment is approved by voters.