TX HB960

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

Prohibits local sales and use taxes starting January 1, 2030, replacing them with local value added taxes capped at 2% combined rate for political subdivisions that previously had sales tax authority

Bans school district maintenance and operations property taxes beginning January 1, 2030, contingent on voter approval of a constitutional amendment; requires state to fund Foundation School Program at minimum $6,160 per student in average daily attendance

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

Repeals multiple Tax Code provisions including Chapter 142 and Subtitles E, F, G, H, and J of Title 2, along with local sales tax subtitle; requires comptroller to submit implementation recommendations by December 1, 2026