Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
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Individual Liberty
Digest
HB 165 proposes the eventual elimination of ad valorem (property) taxes in Texas, effective January 1, 2035. It establishes a Joint Interim Committee on the Elimination of Ad Valorem Taxes, consisting of appointed Texas House and Senate members, tasked with studying and recommending alternative revenue sources for local governments that rely on property tax revenue. The committee is directed to submit a report by November 1, 2026, detailing potential replacement taxation methods, redistribution mechanisms to address revenue disparities, and any further legislative actions required to implement the tax elimination.
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