Relating to the repeal of or limitations on certain state and local taxes, including school district maintenance and operations ad valorem taxes, the enactment of state and local value added taxes, and related school finance reform; imposing taxes.

HB 2220 creates a new 6.72% state value added tax (VAT) on businesses supplying services or property in Texas. The tax is calculated as the difference between a business's "output tax" (tax collected on sales) and "input tax" (tax paid on purchases), with the net amount due. It exempts small businesses, government entities, and religious/educational organizations from the tax, while excluding financial services, intercompany transactions, and property already taxed under other laws. The bill directly affects most Texas businesses engaged in commercial activity, with revenue directed to state funds as specified in the text.