TX HB165

Eliminates all ad valorem (property) taxes in Texas effective January 1, 2035, repealing Title 1 of the Tax Code and prohibiting the state or any political subdivision from imposing such taxes

Creates a 10-member joint interim committee to study alternative taxation methods, composed of 5 House members appointed by the Speaker and 5 Senators appointed by the Lieutenant Governor

Requires the committee to analyze replacement revenue sources, including determining necessary tax rates for alternatives, evaluating whether political subdivisions could impose proposed alternative taxes, and assessing redistribution mechanisms to address local revenue disparities

Committee appointments must be made by November 1, 2025, with a written report containing study results and legislative recommendations due to the legislature by November 1, 2026

Tax liability accrued before January 1, 2035 remains enforceable under former law for collection and enforcement purposes; the committee expires January 1, 2027