HB 2220

Principle Criteria
neutral
Free Enterprise
neutral
Property Rights
neutral
Personal Responsibility
neutral
Limited Government
neutral
Individual Liberty
Digest
HB 2220 proposes a comprehensive overhaul of the Texas tax system, particularly focusing on school finance reform. It introduces a state value-added tax (VAT) to replace certain state and local taxes, including the prohibition of school district maintenance and operations ad valorem taxes starting in 2030. It allows political subdivisions and school districts to impose a local VAT under specific conditions, with limits on rates and use of funds. Revenue from the VAT is earmarked for foundational and enrichment activities in public schools, with provisions for transitioning to this system. The bill also includes exemptions for small businesses, governmental entities, and non-profits while specifying items and services excluded from taxation. Additionally, it repeals certain provisions of the Tax Code and Education Code contingent on the successful implementation of the proposed changes​.
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