TX HB1485

Establishes a new state value added tax (VAT) at 6.72% on services and property supplied by businesses, effective January 1, 2030, with exemptions for small businesses, governmental entities, and religious/educational/public service organizations

Prohibits local sales and use taxes beginning January 1, 2030, replacing them with local value added taxes capped at 2% combined rate for political subdivisions previously authorized to impose sales taxes

Bans school district maintenance and operations property taxes starting January 1, 2030, contingent on voter approval of a constitutional amendment prohibiting such taxes

Creates a school district enrichment value added tax (up to 0.5%) that districts may adopt by voter election to fund enrichment facilities and activities beyond basic educational requirements

Requires the legislature to fund the Foundation School Program at minimum $6,160 per student in average daily attendance beginning 2030-2031, with the comptroller submitting an implementation report by December 1, 2026

Repeals multiple Tax Code provisions including state sales and use tax chapters, franchise tax, and local sales tax chapters, as well as Education Code provisions related to school district wealth equalization (Chapter 49)