Texas HB960 proposes to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform.

Texas HB960 aims to prohibit school districts from imposing ad valorem taxes for maintenance and operations, replacing them with state and local value added taxes. The bill sets a 6.72% rate for the value added tax, with local rates not exceeding 2%. School districts can impose an enrichment value added tax up to 0.5% to fund educational enrichment. The bill also mandates state funding for school districts' foundational bonds and requires school districts to transition to the new tax system by 2030.

Texas HB960 proposes to repeal school district maintenance and operations ad valorem taxes, enact state and local value added taxes, and reform.

Texas HB960 aims to prohibit school districts from imposing ad valorem taxes for maintenance and operations, replacing them with state and local value added taxes. The bill sets a 6.72% rate for the value added tax, with local rates not exceeding 2%. School districts can impose an enrichment value added tax up to 0.5% to fund educational enrichment. The bill also mandates state funding for school districts' foundational bonds and requires school districts to transition to the new tax system by 2030.