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 98 would establish a 6.72% state value-added tax (VAT) on businesses selling goods or services in Texas, replacing certain existing local taxes like school district property taxes. Businesses would pay tax only on the "value added" to their products or services - subtracting taxes paid on business inputs from taxes collected on sales. The bill exempts small businesses, government entities, and nonprofits from the tax, while excluding financial services and other specified transactions. This VAT would fund school finance reform by replacing some local school district taxes with a new statewide revenue stream.