TX HB4648

Prohibits all ad valorem (property) taxes by the state and political subdivisions starting January 1, 2026, with school district debt service property taxes allowed until January 1, 2033

Increases the state sales tax rate from 6.25% to 15% and expands the tax base to cover all services, while eliminating all local sales and use taxes

Eliminates most current sales tax exemptions, including those for motor vehicles, cement, mixed beverages, alcoholic beverages, and oil well services, while retaining exemptions for oil production taxes, motor fuels, and insurance premiums subject to gross premiums taxes

Replaces school district property tax funding with state sales tax revenue beginning with the 2026-2027 school year, requires each district to establish a private citizens board of property owners to help administer funding, and authorizes the attorney general to file involuntary bankruptcy suits against non-compliant districts

Requires the legislature to appropriate state funds to replace lost local property and sales tax revenue for political subdivisions, with repeals of numerous Tax Code provisions including local sales tax chapters and property tax administration sections