Texas HB99 repeals school district maintenance and operations ad valorem taxes and replaces them with a state value-added tax.
Texas HB99 repeals school district maintenance and operations (M&O) ad valorem taxes starting in the 2030 tax year. It also imposes a state value-added tax (VAT) on the value added to goods and services at each stage of production or distribution, with an initial rate of 6.72%. All revenue from the state VAT will be deposited into the Foundation School Fund to fund public education operations previously funded by school M&O local value-added taxes.
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