TX HB698

Abolishes all ad valorem (property) taxes in Texas effective January 1, 2031, 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 with 5 House members appointed by the Speaker and 5 Senators appointed by the Lieutenant Governor, with appointments due by February 1, 2026

Requires the committee to study how to replace lost local property tax revenue with sales and use taxes, including determining necessary tax rates and whether revenue redistribution would be needed

Committee must submit a written report with findings and legislative recommendations to the legislature by December 1, 2026, after which the committee dissolves on January 1, 2027

Entire Act is contingent on voter approval of a constitutional amendment proposed by the 89th Legislature to abolish ad valorem taxes; if the amendment fails, the Act has no effect