TX HB2220

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

Prohibits local sales and use taxes starting January 1, 2030, but allows political subdivisions previously authorized to impose such taxes to instead impose local value added taxes at rates not exceeding 2% combined

Bans school district maintenance and operations (M&O) property taxes beginning January 1, 2030, contingent on voter approval of a constitutional amendment authorizing the prohibition

Authorizes school districts to impose an enrichment value added tax of up to 0.5% (approved by voter election) for non-foundational activities like enrichment facilities, separate from the 2% local VAT cap

Requires the legislature to fully fund the Foundation School Program starting in the 2030-2031 school year with a basic allotment of at least $6,160 per student in average daily attendance, and repeals related "Robin Hood" recapture provisions in Chapter 49 of the Education Code