TX HB2194

Establishes a new state value added tax (VAT) at 6.72% on persons supplying services or property in the ordinary course of business, 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, but allows political subdivisions previously authorized to collect sales taxes to impose a local VAT at their former sales tax rate, with a combined local cap of 2%

Bans school district maintenance and operations (M&O) ad valorem property taxes starting January 1, 2030, contingent on voter approval of a constitutional amendment prohibiting such taxes

Authorizes school districts to impose an enrichment VAT of up to 0.5% (separate from the 2% local cap) through voter approval, with revenue restricted to enrichment facilities and activities not covered by the Foundation School Program

Requires the legislature to fully fund the Foundation School Program beginning in the 2030-2031 school year, including a minimum basic allotment of $6,160 per student in average daily attendance, and repeals existing state sales/use tax provisions (Chapters 142 and Subtitles E, F, G, H, J of Title 2, Tax Code)