HB C — TPTRP TAX ABOLITION AND CONFORMITY ACT

House Bill · Repealer and Conforming Amendments
Repeals the statutes superseded by the TPTRP and makes conforming amendments throughout the Texas codes.
Pre-Filing Draft — Version 2 August 2026 Rep. Will Campbell — HD 109 90th Legislature, Regular Session, 2027
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By: ______________________

H.B. No. ______

A BILL TO BE ENTITLED

AN ACT relating to the abolition of the taxes superseded by Article VIII, Section 1-m(c), of the Texas Constitution, the repeal of the statutes imposing those taxes, and the conforming amendments to other codes made necessary by the Texas Property Tax Replacement Plan; the preservation of audit, criminal, and administrative rules of the sales and use tax during the transition; and the coordination of titling, registration, licensing, and administrative functions preserved for motor vehicles, boats, aircraft, manufactured housing, and other titled property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. FINDINGS, PURPOSE, AND DEFINITIONS

Sec. 1.01. SHORT TITLE.

This Act may be cited as the TPTRP Tax Abolition and Conformity Act.

Sec. 1.02. FINDINGS AND PURPOSE.

(a) The Texas Property Tax Replacement Plan, adopted by the voters of this state through the constitutional amendment proposed by the 90th Legislature (H.J.R. No. _____, Regular Session, 2027), abolishes ad valorem property taxation of real and personal property in this state and replaces the revenue formerly derived from that tax, together with the revenue formerly derived from a number of state and local sales, use, excise, franchise, production, and occupational taxes, with a unified tiered sales and use tax imposed on all agent transactions in this state.
(b) The constitutional amendment referenced in Subsection (a) of this section directs the Legislature, by Article VIII, Section 1-m(c), and Article VIII, Section 9.01, of the Texas Constitution, to abolish specific taxes on the Implementation Date, and to enact conforming amendments to the general laws of this state to give effect to that abolition. The primary implementing legislation, including the TPTRP Sales and Use Tax Act (Chapter 151-A, Tax Code), the TPTRP Fund System Act, the TPTRP Bond Management Act, the TPTRP Transition Board Act, the TPTRP Remote Seller and Foreign Entity Act, and the TPTRP Texas Living Exemption Set Act, has been enacted separately. That primary legislation identifies each provision of law that it supersedes, displaces, or renders obsolete, but does not itself repeal any such provision.
(c) The purpose of this Act is to complete the Texas Property Tax Replacement Plan by:
(1) repealing each statute identified for repeal by the primary implementing legislation;
(2) making conforming amendments to the Tax Code, Government Code, Education Code, Local Government Code, Transportation Code, Parks and Wildlife Code, Occupations Code, Insurance Code, Business Organizations Code, Water Code, and any other code affected by the Texas Property Tax Replacement Plan;
(3) preserving, incorporating by reference into Chapter 151-A, Tax Code, and adapting the audit rules, criminal penalties, and administrative procedures of former Chapter 151, Tax Code, so that the sales and use tax under Chapter 151-A operates with continuity of enforcement from the effective date of that chapter;
(4) preserving the titling, registration, licensing, and administrative functions of the county tax assessor-collector, the Texas Department of Motor Vehicles, the Texas Parks and Wildlife Department, the Federal Aviation Administration coordination through the Texas Department of Transportation, the Texas Department of Housing and Community Affairs, and any other agency whose non-sales-tax functions are preserved by the Texas Property Tax Replacement Plan;
(5) providing savings, transition, and effective-date rules that coordinate the repealer with the phase-out of prior-law tax collections, the certification of final-period liabilities, and the ability of a taxpayer to complete a return, refund claim, or dispute commenced under prior law before the Implementation Date; and
(6) implementing the constitutional command of Article VIII, Sections 1-m(c) and 1-x, of the Texas Constitution to abolish the taxes described therein and to conform the general laws of this state to that abolition.

Sec. 1.03. RELATIONSHIP TO OTHER LAW.

(a) This Act does not impose a new tax, alter the rate of any tax imposed by another provision of law, or change the definition of any taxable transaction, exemption, or exclusion established by another provision of law. This Act repeals identified statutes, makes conforming amendments to identified provisions, and does no more.
(b) The tax imposed by Chapter 151-A, Tax Code, is imposed by the TPTRP Sales and Use Tax Act and not by this Act. The rate structure, definition filter, sourcing rules, and exemption framework of Chapter 151-A are established by that Act, the TPTRP Texas Living Exemption Set Act, and the constitutional provisions those Acts implement. This Act does not modify any of those Acts.
(c) The abolition of ad valorem property taxation of real and personal property in this state is effected by Article VIII, Sections 1-a, 1-b, 1-d, 1-d-1, 1-h, 1-i, 1-j, 1-j-1, and other applicable provisions of the Texas Constitution, as amended by the constitutional amendment referenced in Section 1.02(a) of this Act. This Act carries forward that constitutional abolition into general law by repealing the statutes that implemented ad valorem taxation and by making the conforming amendments made necessary by that abolition.
(d) Where this Act repeals a statute, the repeal is effective on the Implementation Date established by Article VIII, Section 9.01(b), of the Texas Constitution, unless a different effective date is expressly provided for the specific repeal. Until the Implementation Date, the repealed statute remains fully operative for purposes of transactions, tax periods, and liabilities arising before that date, subject to the savings provisions of Article 11 of this Act.

Sec. 1.04. DEFINITIONS.

In this Act, unless the context clearly requires otherwise:
(1) "Chapter 151-A" means Chapter 151-A, Tax Code, as enacted by the TPTRP Sales and Use Tax Act.
(2) "Implementation Date" has the meaning assigned by Article VIII, Section 9.01(b), of the Texas Constitution.
(3) "Prior-Law Tax" means a tax imposed by a statute repealed by this Act, as that statute existed immediately before its repeal.
(4) "Primary Implementing Legislation" means, collectively, the TPTRP Sales and Use Tax Act, the TPTRP Fund System Act, the TPTRP Bond Management Act, the TPTRP Transition Board Act, the TPTRP Remote Seller and Foreign Entity Act, and the TPTRP Texas Living Exemption Set Act.
(5) "TPTRP" means the Texas Property Tax Replacement Plan established by Article VIII, Sections 1-e, 1-m through 1-w, and 9.01, of the Texas Constitution.
(6) "Titled Property" means a motor vehicle, boat, boat motor, aircraft, manufactured home, or other item of personal property for which a certificate of title, registration, or similar record of ownership is required by other law.
(7) "Transition Period" has the meaning assigned by Article VIII, Section 9.01, of the Texas Constitution, and by the TPTRP Transition Board Act.
Any term not defined in this section has the meaning assigned to it by Chapter 151-A, Tax Code, or by the constitutional provision that its use in this Act implements.

ARTICLE 2. PROPERTY TAX ABOLITION

Sec. 2.01. ABOLITION OF AD VALOREM TAX; STATUTORY IMPLEMENTATION.

(a) On and after the Implementation Date, ad valorem taxation of real property, tangible personal property, intangible personal property, mineral interests, oil and gas interests, mixed-use property, agricultural property, timber property, and any other property historically subject to ad valorem taxation under prior law is abolished in this state, as provided by Article VIII, Sections 1-e and 1-m(c)(1), of the Texas Constitution.
(b) No taxing unit of this state, including the state itself, a county, a municipality, an independent school district, a junior college district, a hospital district, an emergency services district, a municipal utility district, a water control and improvement district, a groundwater conservation district, a road utility district, a fresh water supply district, or any other special purpose district, may assess, levy, collect, or receive an ad valorem tax on and after the Implementation Date, except with respect to a tax year ending before the Implementation Date, as provided by Section 11.01 of this Act.

Sec. 2.02. REPEAL OF THE PROPERTY TAX CODE.

(a) Title 1, Tax Code (Property Tax Code), is repealed in its entirety, effective on the Implementation Date. Title 1, Tax Code, consists of Subtitles A through F, comprising Chapters 1 through 43, Tax Code, and includes without limitation:
(1) Chapter 1 (General Provisions), Chapter 5 (State Administration), Chapter 6 (Local Administration), Chapter 7 (State-Local Roles), Chapter 11 (Taxable Property and Exemptions), Chapter 21 (Taxable Situs), Chapter 22 (Renditions and Reports), Chapter 23 (Appraisal Methods and Procedures), Chapter 24 (Central Appraisal), and Chapter 25 (Local Appraisal), Tax Code;
(2) Chapter 26 (Assessment), Chapter 31 (Collections), Chapter 32 (Tax Liens and Personal Liability), Chapter 33 (Delinquency), and Chapter 34 (Tax Sales and Redemption), Tax Code;
(3) Chapter 41 (Local Review), Chapter 41A (Appeal Through Binding Arbitration), Chapter 42 (Judicial Review), and Chapter 43 (Suits by Taxing Units), Tax Code; and
(4) any other chapter of Title 1, Tax Code, in force immediately before the Implementation Date.
(b) The repeal effected by Subsection (a) of this section does not:
(1) affect the validity of an ad valorem tax lawfully assessed and due before the Implementation Date;
(2) affect the validity of a tax lien attached to property under Chapter 32, Tax Code, before the Implementation Date, or the enforcement of that lien after the Implementation Date, as provided by Section 11.02 of this Act;
(3) affect a suit for delinquent ad valorem taxes filed before the Implementation Date, or the entry of judgment, execution, and satisfaction of that suit after the Implementation Date; or
(4) affect the operation of a homestead exemption, over-65 or disability exemption, or any other exemption granted under Chapter 11, Tax Code, with respect to a tax year ending before the Implementation Date.

Sec. 2.03. REPEAL OF SUPPORTING STATUTES.

The following statutes are repealed, effective on the Implementation Date:
(1) Chapter 6, Property Tax Code, providing for county appraisal districts and appraisal review boards, is repealed. On and after the Implementation Date, a county appraisal district is dissolved as an entity of local government except to the extent its continued operation is required to complete the wind-down of pre-Implementation Date liabilities under Section 11.03 of this Act, and its remaining property, records, funds, and personnel are transferred to the successor entity designated by the Comptroller under Section 490.031, Government Code, as enacted by the TPTRP Transition Board Act.
(2) Chapter 403, Government Code, Subchapter M (Appraisal District Property Value Study), is repealed to the extent it establishes obligations tied to ad valorem taxation superseded by the TPTRP. Subchapter M provisions applicable to state functions unrelated to ad valorem taxation are preserved to the extent consistent with the TPTRP.
(3) Article 3.13, Insurance Code (property tax on insurers), and any conforming provision of the Insurance Code that imposes or references an ad valorem tax obligation, is repealed.
(4) Section 502.045, Transportation Code, and any other provision of the Transportation Code that ties motor vehicle registration to ad valorem taxation, is amended by Section 7.02 of this Act to sever the ad valorem linkage.

Sec. 2.04. TRANSITION FUND CAPITALIZATION AND PHASE-OUT.

(a) The final period of ad valorem tax collections under prior law ends on the last regular tax due date preceding the Implementation Date. Ad valorem taxes assessed for a tax year ending on or before that date remain due and are administered under prior law until fully collected, subject to the savings provision of Section 11.01 of this Act.
(b) A taxing unit that ceases to receive ad valorem tax revenue on the Implementation Date is entitled to the phase-out replacement funding provided by the TPTRP Transition Fund established under Article III, Section 49-r, of the Texas Constitution, and administered under the TPTRP Transition Board Act. This Act does not enlarge, restrict, or modify the mechanics of that phase-out replacement funding.
(c) The Comptroller shall issue the certifications, publish the schedules, and administer the phase-out reconciliation required by the TPTRP Transition Board Act. This Act cross-references that Act rather than restating it.

ARTICLE 3. REPEAL OF SALES, USE, AND EXCISE TAX CHAPTERS SUPERSEDED BY CHAPTER 151-A

Sec. 3.01. REPEAL OF CHAPTER 151, TAX CODE.

(a) Chapter 151, Tax Code (Limited Sales, Excise, and Use Tax), is repealed in its entirety, effective on the Implementation Date, subject to the survival of audit and enforcement provisions as provided by Article 9 of this Act.
(b) A reference in the general laws of this state to a tax imposed by Chapter 151, Tax Code, is a reference, on and after the Implementation Date, to the corresponding tax imposed by Chapter 151-A, Tax Code, unless the context clearly requires otherwise.
(c) The repeal of Chapter 151, Tax Code, effected by Subsection (a) of this section does not affect:
(1) a taxable transaction consummated before the Implementation Date;
(2) a tax return, refund claim, credit, offset, or other administrative filing pending before the Comptroller on the Implementation Date; or
(3) an audit, assessment, deficiency determination, redetermination, or judicial proceeding pending on the Implementation Date, all of which continue under prior law and under the audit and enforcement provisions preserved by Article 9 of this Act until final resolution.

Sec. 3.02. REPEAL OF CHAPTER 321, TAX CODE (MUNICIPAL SALES AND USE TAX).

(a) Chapter 321, Tax Code (Municipal Sales and Use Tax), is repealed in its entirety, effective on the Implementation Date.
(b) The revenue formerly derived by a municipality from a tax imposed under Chapter 321, Tax Code, is replaced, on and after the Implementation Date, by the municipal share of the tax imposed by Chapter 151-A, Tax Code, as allocated and distributed under Article 7 of that Act.
(c) The place-of-business sourcing rules formerly provided by Sections 321.203 and 321.205, Tax Code, are preserved in modernized form by Section 151A.206, Tax Code, as enacted by the TPTRP Sales and Use Tax Act. A reference in the general laws of this state to sourcing under Section 321.203 or 321.205 is, on and after the Implementation Date, a reference to sourcing under Section 151A.206, Tax Code.

Sec. 3.03. REPEAL OF CHAPTER 322, TAX CODE (SPECIAL PURPOSE TAXING AUTHORITIES).

(a) Chapter 322, Tax Code (Sales and Use Taxes for Special Purpose Taxing Authorities), is repealed in its entirety, effective on the Implementation Date.
(b) The revenue formerly derived by a metropolitan transit authority, coordinated county transportation authority, city transit department, advanced transportation district, rural transit district, or other special purpose taxing authority from a tax imposed under Chapter 322, Tax Code, is replaced, on and after the Implementation Date, by the applicable tier share of the tax imposed by Chapter 151-A, Tax Code, allocated and distributed under Article 6 or Article 7 of that Act, as applicable to the entity's tier.

Sec. 3.04. REPEAL OF CHAPTER 323, TAX CODE (COUNTY SALES AND USE TAX).

(a) Chapter 323, Tax Code (County Sales and Use Tax), is repealed in its entirety, effective on the Implementation Date.
(b) The revenue formerly derived by a county from a tax imposed under Chapter 323, Tax Code, is replaced, on and after the Implementation Date, by the county share of the tax imposed by Chapter 151-A, Tax Code, as allocated and distributed under Article 7 of that Act.
(c) A reference in the general laws of this state to sourcing under Section 323.203 or 323.205, Tax Code, is, on and after the Implementation Date, a reference to sourcing under Section 151A.206, Tax Code.

Sec. 3.05. REPEAL OF CHAPTER 152, TAX CODE (MOTOR VEHICLE SALES, USE, AND RENTAL TAXES) — RATE STRUCTURE.

(a) The rate structure and imposition provisions of Chapter 152, Tax Code (Motor Vehicle Sales, Use, and Rental Taxes), are repealed, effective on the Implementation Date. Repeal under this subsection includes without limitation Section 152.021, Section 152.022, Section 152.026, Section 152.028, and Section 152.041, Tax Code, and any other provision of Chapter 152 that imposes a tax or establishes a tax rate.
(b) On and after the Implementation Date, the sales tax component of a motor vehicle sale, use, lease, or rental to which Chapter 151-A, Tax Code, applies is imposed at the applicable combined rate under Article 2 of the TPTRP Sales and Use Tax Act, sourced under Section 151A.206 of that Act, and administered under Section 151A.210 of that Act.
(c) The Standard Presumptive Value ("SPV") mechanism formerly provided by Section 152.0412, Tax Code, and any comparable mechanism formerly provided by Section 152.028, Tax Code, are preserved as administrative tools for determining the taxable amount of a private-party or non-dealer motor vehicle transaction that is not exempt under Section 151A.211, Tax Code. Section 7.01 of this Act carries forward the SPV mechanism into a preserved administrative provision of the Transportation Code.
(d) The seller-financed sales provisions, dealer-only rules, and title-transfer administrative rules formerly provided by Chapter 152, Tax Code, are preserved to the extent they are compatible with the imposition of the tax under Chapter 151-A, Tax Code, and with the sourcing rules of Section 151A.206, Tax Code. Section 7.01 of this Act specifies the preserved provisions and their placement in the Transportation Code or in a conforming provision of the Tax Code.
(e) The county tax assessor-collector's registration, titling, license plate, and inspection functions under Chapter 501, Transportation Code, and other applicable law are preserved without modification, except as necessary to sever the linkage between motor vehicle registration and Chapter 152 tax imposition. Section 7.02 of this Act effects the severance.

Sec. 3.06. REPEAL OF CHAPTER 158, TAX CODE (MANUFACTURED HOUSING).

(a) The rate structure and imposition provisions of Chapter 158, Tax Code (Manufactured Housing Sales and Use Tax), are repealed, effective on the Implementation Date.
(b) On and after the Implementation Date, the sales tax component of a manufactured home sale to which Chapter 151-A, Tax Code, applies is imposed at the applicable combined rate under Article 2 of the TPTRP Sales and Use Tax Act, sourced under Section 151A.206 of that Act, and administered under Section 151A.210 of that Act.
(c) The certification, installation, and consumer-protection functions of the Texas Department of Housing and Community Affairs under Chapter 1201, Occupations Code, are preserved without modification, except as necessary to sever the linkage between manufactured housing regulation and Chapter 158 tax imposition. Section 7.03 of this Act effects the severance.

Sec. 3.07. REPEAL OF CHAPTER 160, TAX CODE (BOATS AND BOAT MOTORS).

(a) Chapter 160, Tax Code (Taxes on Sales and Use of Boats and Boat Motors), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sales tax component of a boat or boat motor sale to which Chapter 151-A, Tax Code, applies is imposed at the applicable combined rate under Article 2 of the TPTRP Sales and Use Tax Act, sourced under Section 151A.206 of that Act, and administered under Section 151A.210 of that Act.
(c) The certificate-of-title, registration, and administrative functions of the Texas Parks and Wildlife Department under Chapter 31, Parks and Wildlife Code, are preserved without modification, except as necessary to sever the linkage between boat and outboard motor registration and Chapter 160 tax imposition. Section 7.04 of this Act effects the severance.

ARTICLE 4. REPEAL OF BUSINESS FRANCHISE, PRODUCTION, GROSS RECEIPTS, AND OCCUPATIONAL TAXES

Sec. 4.01. REPEAL OF CHAPTER 171, TAX CODE (FRANCHISE TAX).

(a) Chapter 171, Tax Code (Franchise Tax), is repealed in its entirety, effective on the Implementation Date.
(b) The revenue formerly derived by this state from the franchise tax imposed under Chapter 171, Tax Code, is replaced, on and after the Implementation Date, by the state share of the tax imposed by Chapter 151-A, Tax Code, as allocated under Article 7 of the TPTRP Sales and Use Tax Act.
(c) The economic development, temporary credit, historic structure rehabilitation credit, research and development credit, and other special-purpose credit provisions of Chapter 171, Tax Code, are repealed together with the underlying franchise tax. The Legislature may, by separate enactment, establish successor programs under the state's general appropriations authority or under the Comptroller's grant-administration authority to preserve any policy objective of a repealed credit that the Legislature determines to preserve.
(d) A franchise tax report, payment, refund claim, credit, offset, audit, deficiency determination, redetermination, or judicial proceeding pending on the Implementation Date continues under prior law and under the audit and enforcement provisions preserved by Article 9 of this Act until final resolution.

Sec. 4.02. REPEAL OF CHAPTER 201, TAX CODE (GAS PRODUCTION TAX).

(a) Chapter 201, Tax Code (Gas Production Tax), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of gas produced in this state is a taxable transaction under Chapter 151-A, Tax Code, sourced to the applicable Texas point-of-possession or delivery location under Section 151A.206 of that Act, and taxed at the applicable combined rate under Article 2 of that Act.
(c) The wellhead-registration, place-of-business, and severance-related administrative rules preserved by Article VIII, Section 1-p(i), of the Texas Constitution, and administered under the TPTRP Sales and Use Tax Act, are preserved without modification.
(d) A conservation, regulatory, or environmental fee, assessment, or charge imposed by the Railroad Commission of Texas, the Texas Commission on Environmental Quality, or another state agency under separate statutory authority is not affected by the repeal effected by Subsection (a) of this section and remains in force as provided by other law.

Sec. 4.03. REPEAL OF CHAPTER 202, TAX CODE (OIL PRODUCTION TAX).

(a) Chapter 202, Tax Code (Oil Production Tax), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of oil produced in this state is a taxable transaction under Chapter 151-A, Tax Code, sourced, taxed, and administered as provided by Section 4.02(b) and (c) of this Act, applied to oil rather than gas.
(c) Section 4.02(d) of this Act applies to conservation, regulatory, and environmental fees, assessments, and charges applicable to oil production to the same extent it applies to gas production.

Sec. 4.04. REPEAL OF CHAPTER 182, TAX CODE (MISCELLANEOUS GROSS RECEIPTS TAXES ON UTILITIES).

(a) Chapter 182, Tax Code (Miscellaneous Gross Receipts Taxes on Utilities), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of a utility service to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, sourced under Section 151A.206(c)(4) of that Act to the location at which the service is delivered to the consumer, and taxed at the applicable combined rate under Article 2 of that Act.

Sec. 4.05. REPEAL OF CHAPTER 156, TAX CODE (HOTEL OCCUPANCY TAX).

(a) Chapter 156, Tax Code (Hotel Occupancy Tax), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of a hotel room, motel room, short-term rental accommodation, bed-and-breakfast accommodation, or similar transient lodging to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, sourced under Section 151A.206 of that Act to the location of the accommodation, and taxed at the applicable combined rate under Article 2 of that Act.
(c) A local hotel occupancy tax authorized by Chapter 351, Tax Code (municipal), Chapter 352, Tax Code (county), or Chapter 334, Local Government Code (venue project), is repealed to the extent it is a sales-tax-substitute local levy superseded by the tier structure of Article VIII, Section 1-n(b), of the Texas Constitution. Section 8.03 of this Act specifies the affected provisions.
(d) A convention and visitor bureau, tourism promotion authority, or similar entity funded by a hotel occupancy tax repealed by this section is entitled to phase-out replacement funding through the applicable municipal or county share of the tax imposed by Chapter 151-A, Tax Code, allocated and distributed under Article 7 of the TPTRP Sales and Use Tax Act. The receiving municipality or county may allocate the replacement funding to the affected entity by ordinance, subject to the entity's founding statute and any applicable operating agreement.

Sec. 4.06. REPEAL OF INSURANCE PREMIUM TAX PROVISIONS.

(a) The premium tax provisions of the Insurance Code, including without limitation Chapter 221 (Property and Casualty Insurance Premium Tax), Chapter 222 (Life, Health, and Accident Insurance Premium Tax), Chapter 223 (Title Insurance Premium Tax), Chapter 224 (Reciprocal and Interinsurance Exchange Premium Tax), Chapter 225 (Surplus Lines Insurance Premium Tax), Chapter 226 (Independently Procured Insurance Premium Tax), Chapter 227 (Unauthorized Insurance Premium Tax), Chapter 228 (Captive Insurance Premium Tax), Chapter 229 (HMO Premium Tax), and Chapter 257 (Retaliatory Provisions), Insurance Code, are repealed to the extent they impose a premium tax that is superseded by Chapter 151-A, Tax Code, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of an insurance product to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, sourced under Section 151A.206 of that Act to the applicable Texas location of the insured risk or the policyholder, and taxed at the applicable combined rate under Article 2 of that Act.
(c) The regulatory, solvency, licensing, market conduct, and consumer protection functions of the Texas Department of Insurance under other provisions of the Insurance Code are preserved without modification. Retaliatory-tax obligations imposed on Texas insurers by other states under those states' retaliatory-tax provisions are not affected by this Act.

ARTICLE 5. REPEAL OF SPECIAL EXCISE AND REGULATORY TAXES

Sec. 5.01. REPEAL OF CHAPTERS 154 AND 155, TAX CODE (TOBACCO PRODUCTS).

(a) Chapter 154, Tax Code (Cigarette Tax), and Chapter 155, Tax Code (Cigars and Other Tobacco Products Tax), are repealed in their entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of a tobacco product to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, sourced, taxed, and administered as any other taxable transaction under that chapter.
(c) The licensing, product-standards, and enforcement functions applicable to tobacco distributors, wholesalers, retailers, and manufacturers under the Health and Safety Code, the Business and Commerce Code, and other applicable law are preserved without modification.
(d) Any federal law preemption of state cigarette-tax provisions, or any interstate compact provision applicable to cigarette taxation, is preserved to the extent applicable, and the repeal effected by Subsection (a) of this section does not affect any obligation of this state under such law.

Sec. 5.02. REPEAL OF CHAPTER 183, TAX CODE (MIXED BEVERAGE TAXES).

(a) Chapter 183, Tax Code (Mixed Beverage Sales Tax and Mixed Beverage Gross Receipts Tax), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of an alcoholic beverage for on-premises consumption at a mixed beverage permittee's location, and any other transaction subject to a tax imposed by Chapter 183, Tax Code, before the Implementation Date, is a taxable transaction under Chapter 151-A, Tax Code, sourced, taxed, and administered as any other taxable transaction under that chapter.
(c) The licensing, permitting, and enforcement functions of the Texas Alcoholic Beverage Commission under the Alcoholic Beverage Code are preserved without modification.

Sec. 5.03. REPEAL OF MOTOR FUEL TAX PROVISIONS.

(a) Chapter 162, Tax Code (Motor Fuel Taxes), is repealed to the extent it imposes a state motor fuel tax that is superseded by Chapter 151-A, Tax Code, and by the motor fuel sales and use tax dedication established by Section 151A.1001, Tax Code, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of motor fuel (including gasoline, diesel fuel, liquefied gas, compressed natural gas, and liquefied natural gas as those terms were defined by Chapter 162, Tax Code, immediately before its repeal) to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, taxed at the applicable combined rate under Article 2 of that Act, and dedicated as provided by Section 151A.1001 of that Act to the state highway fund and to the available school fund in the ratio required by Article VIII, Section 7-a, of the Texas Constitution.
(c) The federal motor fuel tax reporting and remittance obligations of this state under the Internal Revenue Code and applicable federal law are preserved without modification, and the Comptroller shall coordinate the collection of the motor fuel sales and use tax component of Chapter 151-A, Tax Code, with those federal obligations.
(d) The Interstate Compact for the International Fuel Tax Agreement, and any obligation of this state as a participating member of that compact, is preserved to the extent applicable to interstate motor carrier operations, and the Comptroller shall administer that participation in coordination with the tax imposed by Chapter 151-A, Tax Code.

Sec. 5.04. REPEAL OF BINGO AND COIN-OPERATED MACHINES TAX PROVISIONS.

(a) Chapter 2001, Occupations Code (Bingo), and Chapter 2153, Occupations Code (Coin-Operated Machines), are repealed to the extent they impose a tax that is superseded by Chapter 151-A, Tax Code, effective on the Implementation Date. Specifically:
(1) the gross receipts and prize fee provisions of Chapter 2001, Occupations Code, are repealed; and
(2) the tax and license fee provisions of Chapter 2153, Occupations Code, are repealed to the extent they impose a tax rather than a regulatory or licensing fee.
(b) On and after the Implementation Date, the sale of a bingo card, bingo game admission, coin-operated machine service, or similar transaction to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter.
(c) The licensing, prize regulation, and enforcement functions of the Texas Lottery Commission under Chapter 2001, Occupations Code, and the licensing and enforcement functions of the Comptroller and other agencies under Chapter 2153, Occupations Code, are preserved without modification.

Sec. 5.05. REPEAL OF CHAPTER 181, TAX CODE (CEMENT PRODUCTION TAX).

(a) Chapter 181, Tax Code (Cement Production Tax), is repealed in its entirety, effective on the Implementation Date.
(b) On and after the Implementation Date, the sale of cement to which Chapter 151-A, Tax Code, applies is a taxable transaction under that chapter, sourced, taxed, and administered as any other taxable transaction under that chapter.
(c) The dedication of cement tax revenue to the Foundation School Fund formerly imposed by Chapter 181, Tax Code, is superseded by the ISD funding mechanism established by Article 5 of the TPTRP Sales and Use Tax Act, under which each independent school district receives a share of the tax imposed by Chapter 151-A, Tax Code, allocated and distributed under Article 7 of that Act.

ARTICLE 6. REPEAL OF FOUNDATION SCHOOL PROGRAM AND RECAPTURE

Sec. 6.01. REPEAL OF CHAPTER 48, EDUCATION CODE.

(a) Chapter 48, Education Code (Foundation School Program), is repealed in its entirety, effective on the Implementation Date, as the general law implementing Article VIII, Section 1-n(k)(3), of the Texas Constitution, and Section 9.02(h), Temporary Provision, of the Texas Constitution.
(b) On and after the Implementation Date, each independent school district funds itself from the school-district share of the tax imposed by Chapter 151-A, Tax Code, allocated and distributed under Article 5 (Tier 4 School District Funding) and Article 7 of the TPTRP Sales and Use Tax Act, without state redistribution and without a state-controlled distribution formula.
(c) The academic accountability, financial accountability, governance, auditing, reporting, sanction, conservatorship, management, and dissolution functions of the Texas Education Agency and the Commissioner of Education under other provisions of the Education Code are preserved without modification, as provided by Section 151A.408, Tax Code, of the TPTRP Sales and Use Tax Act.
(d) The permanent school fund and the available school fund established by Article VII, Sections 2 and 5, of the Texas Constitution, and administered under Chapter 43, Education Code, are preserved without modification. The available school fund continues to receive the school-fund portion of the state motor fuel sales and use tax as provided by Section 151A.1001, Tax Code, and Article VIII, Section 7-a, of the Texas Constitution.
(e) The permanent school fund bond guarantee program administered under Subchapter C, Chapter 45, Education Code, is preserved and coordinated with the TPTRP Bond Management Act as provided by that Act.

Sec. 6.02. REPEAL OF CHAPTER 49, EDUCATION CODE (RECAPTURE).

(a) Chapter 49, Education Code (Options for Local Revenue Levels in Excess of Entitlement), is repealed in its entirety, effective on the Implementation Date, as the general law implementing Article VIII, Section 1-n(k)(4), of the Texas Constitution.
(b) On and after the Implementation Date, no independent school district is subject to recapture, equalization, redistribution, or any other transfer of revenue from a local source to another district or to the state, except:
(1) a recapture payment attributable to a tax year ending before the Implementation Date, which remains due and is administered under Chapter 49, Education Code, as it existed before its repeal, as provided by Section 9.02(h), Temporary Provision, of the Texas Constitution, and by Section 11.01 of this Act; and
(2) a transfer of revenue expressly authorized by the TPTRP Sales and Use Tax Act, the TPTRP Fund System Act, the TPTRP Bond Management Act, or the TPTRP Transition Board Act.
(c) The final recapture payment for the last tax year ending before the Implementation Date is due on the schedule established by Chapter 49, Education Code, as it existed before its repeal, and shall be paid, remitted, and credited as provided by that chapter. The Comptroller may adopt rules necessary to complete the collection and distribution of final recapture payments after the Implementation Date.

Sec. 6.03. TRANSITION FOR INDEPENDENT SCHOOL DISTRICTS.

(a) An independent school district that received a Foundation School Program state transfer under Chapter 48, Education Code, in the final tax year ending before the Implementation Date is entitled to phase-out replacement funding through the TPTRP Transition Fund and the Assistance Eligibility Standard, as provided by Section 151A.407, Tax Code, and by the TPTRP Transition Board Act.
(b) An independent school district that made a recapture payment under Chapter 49, Education Code, in the final tax year ending before the Implementation Date retains full local control of the revenue it collects under Chapter 151-A, Tax Code, on and after the Implementation Date, without offset for prior recapture payments.
(c) The Texas Education Agency shall coordinate with the Comptroller to complete the administrative wind-down of the Foundation School Program and recapture system, including final PEIMS reporting, final ADA calculations for the last tax year under prior law, and any residual audit or reconciliation obligations. Costs of the wind-down are paid from the appropriation to the Texas Education Agency, or, if such appropriation is insufficient, from the Transition Fund administered under the TPTRP Transition Board Act.

ARTICLE 7. CONFORMING AMENDMENTS — TITLED PROPERTY REGISTRATION AND ADMINISTRATION

Sec. 7.01. MOTOR VEHICLE ADMINISTRATIVE PROVISIONS PRESERVED.

(a) The following administrative provisions of former Chapter 152, Tax Code, are preserved and are re-enacted, in substance, as new Sections 501.1015 through 501.1019, Transportation Code, to be administered by the Texas Department of Motor Vehicles and the county tax assessor-collector, effective on the Implementation Date:
(1) the Standard Presumptive Value (SPV) mechanism formerly at Section 152.0412, Tax Code, for determining the taxable amount of a private-party or non-dealer motor vehicle transaction;
(2) the seller-financed sales administrative rules formerly at Section 152.047, Tax Code;
(3) the dealer-only sales administrative rules formerly at Section 152.061, Tax Code;
(4) the certificate-of-title tax collection procedure formerly at Section 152.062, Tax Code, as modified to reference the tax imposed by Chapter 151-A, Tax Code, rather than the tax imposed by Chapter 152, Tax Code; and
(5) any other administrative provision of former Chapter 152, Tax Code, that the Comptroller determines by rule to be necessary for the orderly administration of the sales tax component of a motor vehicle transaction under Chapter 151-A, Tax Code.
(b) The Comptroller and the Texas Department of Motor Vehicles shall jointly adopt rules, effective on the Implementation Date, coordinating the tax component of a motor vehicle transaction under Chapter 151-A, Tax Code, with the registration, titling, license plate, inspection, and other administrative functions of the county tax assessor-collector under Chapter 501, Chapter 502, and Chapter 503, Transportation Code.
(c) A reference in the Transportation Code, the Occupations Code, or any other code to a tax imposed by Chapter 152, Tax Code, is, on and after the Implementation Date, a reference to the corresponding sales tax component of a motor vehicle transaction under Chapter 151-A, Tax Code.

Sec. 7.02. SEVERANCE OF AD VALOREM LINKAGE FROM MOTOR VEHICLE REGISTRATION.

(a) Section 502.045, Transportation Code, and any other provision of the Transportation Code that conditions motor vehicle registration on the payment of an ad valorem tax, is amended by striking the ad valorem-tax condition.
(b) On and after the Implementation Date, a motor vehicle registration under Chapter 502, Transportation Code, may not be denied, revoked, suspended, or refused renewal on the basis of an unpaid ad valorem tax, because ad valorem taxation is abolished by Article 2 of this Act.
(c) The county tax assessor-collector shall continue to collect the sales tax component of a motor vehicle transaction under Chapter 151-A, Tax Code, at the time of title transfer or first registration, as provided by Section 7.01 of this Act.

Sec. 7.03. MANUFACTURED HOUSING ADMINISTRATIVE PROVISIONS PRESERVED.

(a) The following administrative provisions of former Chapter 158, Tax Code, are preserved and are re-enacted, in substance, as new Sections 1201.501 through 1201.505, Occupations Code, to be administered by the Texas Department of Housing and Community Affairs and the Comptroller, effective on the Implementation Date:
(1) the taxable-amount determination procedure for a manufactured home sale;
(2) the initial-installation reporting procedure for a manufactured home; and
(3) any other administrative provision of former Chapter 158, Tax Code, that the Comptroller and the Texas Department of Housing and Community Affairs jointly determine by rule to be necessary for the orderly administration of the sales tax component of a manufactured home transaction under Chapter 151-A, Tax Code.
(b) A reference in Chapter 1201, Occupations Code, or in any other code, to a tax imposed by Chapter 158, Tax Code, is, on and after the Implementation Date, a reference to the corresponding sales tax component of a manufactured home transaction under Chapter 151-A, Tax Code.

Sec. 7.04. BOAT AND OUTBOARD MOTOR ADMINISTRATIVE PROVISIONS PRESERVED.

(a) The following administrative provisions of former Chapter 160, Tax Code, are preserved and are re-enacted, in substance, as new Sections 31.201 through 31.205, Parks and Wildlife Code, to be administered by the Texas Parks and Wildlife Department and the Comptroller, effective on the Implementation Date:
(1) the taxable-amount determination procedure for a boat or boat motor sale;
(2) the certificate-of-title tax collection procedure at the time of registration or title transfer, as modified to reference the tax imposed by Chapter 151-A, Tax Code, rather than the tax imposed by Chapter 160, Tax Code; and
(3) any other administrative provision of former Chapter 160, Tax Code, that the Comptroller and the Texas Parks and Wildlife Department jointly determine by rule to be necessary for the orderly administration of the sales tax component of a boat or boat motor transaction under Chapter 151-A, Tax Code.
(b) A reference in Chapter 31, Parks and Wildlife Code, or in any other code, to a tax imposed by Chapter 160, Tax Code, is, on and after the Implementation Date, a reference to the corresponding sales tax component of a boat or boat motor transaction under Chapter 151-A, Tax Code.

Sec. 7.05. AIRCRAFT ADMINISTRATIVE COORDINATION.

(a) The Federal Aviation Administration coordination functions of the Texas Department of Transportation, Aviation Division, and any state aircraft registration requirement, are preserved without modification. On and after the Implementation Date, the sales tax component of an aircraft transaction to which Chapter 151-A, Tax Code, applies is imposed under that chapter, sourced under Section 151A.206 of the TPTRP Sales and Use Tax Act, and administered under Section 151A.210 of that Act.
(b) The Comptroller may adopt rules coordinating the collection of the sales tax component of an aircraft transaction with the Texas Department of Transportation and, as applicable, with federal aircraft registration authorities.

ARTICLE 8. CONFORMING AMENDMENTS — LOCAL GOVERNMENT, TRANSPORTATION, EDUCATION, AND OTHER CODES

Sec. 8.01. LOCAL GOVERNMENT CODE — GENERAL CONFORMING AMENDMENTS.

(a) Chapter 334, Local Government Code (Venue Projects), is repealed to the extent it authorizes a venue-project sales-tax-substitute local levy superseded by the tier structure of Article VIII, Section 1-n(b), of the Texas Constitution, effective on the Implementation Date. Venue-project bond obligations outstanding on the Implementation Date are preserved and administered as provided by the TPTRP Bond Management Act.
(b) Chapter 380, Local Government Code (Miscellaneous Provisions Relating to Municipal Planning and Development), Chapter 381, Local Government Code (County Development and Growth), and Chapter 501, Local Government Code (Development Corporations), are conformed to reflect the abolition of ad valorem taxation and the tier structure of the tax imposed by Chapter 151-A, Tax Code. A reference in those chapters to an ad valorem tax abatement, tax rebate, or tax increment financing arrangement is preserved for pre-Implementation Date obligations but is not available for a new agreement entered into on or after the Implementation Date.
(c) A reinvestment zone, tax increment financing zone, or tax abatement agreement lawfully in effect on the Implementation Date is preserved for the duration of its existing term, and any obligation of a taxing unit under such an agreement to rebate, abate, or share the ad valorem tax attributable to a property in the zone is discharged by the abolition of ad valorem taxation under Article 2 of this Act. The Comptroller shall adopt rules governing the administrative wind-down of these agreements.

Sec. 8.02. TRANSPORTATION CODE — GENERAL CONFORMING AMENDMENTS.

(a) Chapter 502, Transportation Code (Registration of Vehicles), is amended to sever ad valorem-tax linkage as provided by Section 7.02 of this Act.
(b) Chapter 503, Transportation Code (Dealer's and Manufacturer's Vehicle License Plates), is amended to strike references to Chapter 152, Tax Code, and to replace them with references to the sales tax component of a motor vehicle transaction under Chapter 151-A, Tax Code.
(c) Any provision of the Transportation Code that imposes a tax or a tax-substitute fee superseded by Chapter 151-A, Tax Code, is repealed to that extent, effective on the Implementation Date.

Sec. 8.03. HOTEL OCCUPANCY LOCAL TAX PROVISIONS.

(a) Chapter 351, Tax Code (Municipal Hotel Occupancy Taxes), and Chapter 352, Tax Code (County Hotel Occupancy Taxes), are repealed to the extent they authorize a local hotel occupancy tax that is superseded by the tier structure of Article VIII, Section 1-n(b), of the Texas Constitution, effective on the Implementation Date.
(b) A convention and visitor bureau, tourism promotion authority, sports facility authority, arena and coliseum authority, or similar entity funded by a hotel occupancy tax repealed by this section is entitled to phase-out replacement funding as provided by Section 4.05(d) of this Act.
(c) A pledge, dedication, or transfer of local hotel occupancy tax revenue to secure an outstanding bond issued before the Implementation Date is preserved and is administered as provided by the TPTRP Bond Management Act, so that the affected debt service is paid without interruption from the applicable municipal or county share of the tax imposed by Chapter 151-A, Tax Code.

Sec. 8.04. GOVERNMENT CODE — CONFORMING AMENDMENTS.

(a) Chapter 403, Government Code (Comptroller of Public Accounts), is amended, effective on the Implementation Date, to strike provisions that presuppose the existence of ad valorem taxation or of a tax repealed by this Act, and to add cross-references to Chapter 151-A, Tax Code, the TPTRP Fund System Act, the TPTRP Bond Management Act, the TPTRP Transition Board Act, and the TPTRP Remote Seller and Foreign Entity Act.
(b) Chapter 490, Government Code (as enacted by the TPTRP Transition Board Act), is preserved without modification. Cross-references in this Act to Chapter 490 are for identification and do not amend that chapter.
(c) Chapter 466, Government Code (State Lottery), is preserved without modification. The state lottery is not a tax and is not affected by this Act.
(d) Chapter 2256, Government Code (Public Funds Investment Act), and Chapter 2257, Government Code (Collateral for Public Funds), are preserved without modification. These chapters govern the investment of funds established by the TPTRP Fund System Act as provided by that Act.

Sec. 8.05. EDUCATION CODE — CONFORMING AMENDMENTS.

(a) Chapter 45, Education Code (Bond Guarantee and Tax Provisions for Independent School Districts), is amended, effective on the Implementation Date, to:
(1) strike Subchapter A (Property Tax Provisions) in its entirety;
(2) preserve Subchapter B (Bond and Bond Tax Provisions) as conformed to the TPTRP Bond Management Act; and
(3) preserve Subchapter C (Bond Guarantee Program) without modification.
(b) Chapter 43, Education Code (Permanent School Fund and Available School Fund), is preserved without modification, as provided by Section 6.01(d) of this Act.
(c) A reference in the Education Code to a Foundation School Program state transfer, to a recapture payment, or to any calculation, formula, or distribution repealed by Article 6 of this Act, is, on and after the Implementation Date, a reference to the corresponding provision of the TPTRP Sales and Use Tax Act, the TPTRP Fund System Act, or the TPTRP Transition Board Act, as the case may be.

Sec. 8.06. HEALTH AND SAFETY CODE, WATER CODE, AND OTHER CODES.

(a) The Health and Safety Code, the Water Code, the Natural Resources Code, and any other code containing a provision that imposes a tax, tax-substitute fee, or tax-based funding mechanism superseded by Chapter 151-A, Tax Code, or by any other primary implementing legislation, is amended, effective on the Implementation Date, to strike the superseded provision and to substitute a cross-reference to the applicable provision of Chapter 151-A, Tax Code, or of the applicable primary implementing legislation.
(b) The regulatory, licensing, permitting, environmental, and public health functions of the affected agencies are preserved without modification, except to sever tax-based linkages that are inconsistent with the abolition of ad valorem taxation and the tier structure of the tax imposed by Chapter 151-A, Tax Code.
(c) The Comptroller may adopt rules identifying specific provisions of these codes affected by this section and specifying the exact form of the conforming amendment. Rules adopted under this subsection may be published as errata to this Act and are treated as part of this Act for purposes of legislative history and codification.

Sec. 8.07. INSURANCE CODE — CONFORMING AMENDMENTS.

(a) The Insurance Code is amended, effective on the Implementation Date, to strike references to a premium tax repealed by Section 4.06 of this Act, and to substitute references to the sales tax component of an insurance product transaction under Chapter 151-A, Tax Code.
(b) The maintenance tax provisions of Chapter 251 (Fire Insurance), Chapter 252 (Property and Casualty Insurance), Chapter 253 (Life, Health, and Accident Insurance), Chapter 254 (Title Insurance), and Chapter 255 (Motor Vehicle Insurance), Insurance Code, are repealed to the extent they impose a tax that is superseded by Chapter 151-A, Tax Code, but are preserved to the extent they impose a regulatory maintenance fee that is not a tax.
(c) The Texas Windstorm Insurance Association, the Texas FAIR Plan Association, the Texas Health Insurance Pool, and other insurance-related entities are not affected by this Act except as necessary to sever tax-based linkages inconsistent with the tier structure of Chapter 151-A, Tax Code.

Sec. 8.08. BUSINESS ORGANIZATIONS CODE — CONFORMING AMENDMENTS.

(a) Chapter 9, Business Organizations Code (Foreign Filing Entities), is amended by the TPTRP Remote Seller and Foreign Entity Act, and no additional amendment to that chapter is made by this Act.
(b) Chapter 152, Business Organizations Code (General Partnerships), Chapter 153, Business Organizations Code (Limited Partnerships), and Chapter 154, Business Organizations Code (Limited Liability Partnerships), are amended, effective on the Implementation Date, to strike references to a franchise tax repealed by Section 4.01 of this Act.

Sec. 8.09. OCCUPATIONS CODE AND ALCOHOLIC BEVERAGE CODE — CONFORMING AMENDMENTS.

(a) The Occupations Code is amended, effective on the Implementation Date, to strike tax provisions repealed by Article 5 of this Act, and to preserve licensing, regulation, and enforcement provisions.
(b) The Alcoholic Beverage Code is amended, effective on the Implementation Date, to strike tax provisions repealed by Section 5.02 of this Act, and to preserve permitting, licensing, and enforcement provisions.
(c) A reference in the Occupations Code or the Alcoholic Beverage Code to a tax repealed by this Act is, on and after the Implementation Date, a reference to the corresponding tax under Chapter 151-A, Tax Code, unless the context clearly requires otherwise.

ARTICLE 9. CONFORMING AMENDMENTS — PRESERVATION OF AUDIT, CRIMINAL, AND ADMINISTRATIVE RULES

Sec. 9.01. PRESERVATION OF CHAPTER 151 AUDIT AND ENFORCEMENT PROVISIONS.

(a) Notwithstanding the repeal of Chapter 151, Tax Code, effected by Section 3.01 of this Act, the following provisions of former Chapter 151, Tax Code, are preserved, incorporated by reference into Chapter 151-A, Tax Code, and apply to the tax imposed by that chapter to the same extent and in the same manner they applied to the tax imposed by Chapter 151, except where Chapter 151-A or another TPTRP implementing act expressly provides a different rule:
(1) Subchapter I (Reports, Payments, Recordkeeping), Sections 151.401 through 151.435, Tax Code;
(2) Subchapter K (Determinations), Sections 151.501 through 151.518, Tax Code;
(3) Subchapter L (Interest and Penalties), Sections 151.531 through 151.539, Tax Code;
(4) Subchapter N (Suits by Taxpayer), Sections 151.601 through 151.612, Tax Code;
(5) Subchapter O (Criminal Offenses and Penalties), Sections 151.701 through 151.720, Tax Code; and
(6) any other administrative or procedural provision of former Chapter 151, Tax Code, that the Comptroller determines by rule to be necessary for the orderly administration of the tax imposed by Chapter 151-A, Tax Code.
(b) A reference in a preserved provision to Chapter 151, Tax Code, is, on and after the Implementation Date, a reference to Chapter 151-A, Tax Code, and a reference to a tax imposed by Chapter 151 is a reference to the corresponding tax imposed by Chapter 151-A.
(c) The Comptroller shall codify the preserved provisions as new Subchapters G, H, I, J, and K of Chapter 151-A, Tax Code, or in a comparable location within the codification of Chapter 151-A determined by the Texas Legislative Council to be most consistent with existing codification conventions.

Sec. 9.02. PRESERVATION OF CHAPTER 111 (COMPTROLLER — COLLECTION AND ADMINISTRATION).

(a) Chapter 111, Tax Code (Collection Procedures), is preserved without modification. Chapter 111 continues to govern the Comptroller's collection, refund, credit, offset, deficiency assessment, penalty, interest, and audit procedures applicable to any state tax administered by the Comptroller, including the tax imposed by Chapter 151-A, Tax Code, except where Chapter 151-A or another TPTRP implementing act expressly provides a different rule.
(b) A reference in Chapter 111, Tax Code, to a tax imposed by a chapter repealed by this Act is, on and after the Implementation Date, a reference to the corresponding tax imposed by Chapter 151-A, Tax Code.

Sec. 9.03. AUDIT RIGHTS RELATING TO PRIOR-LAW TAXES.

(a) The Comptroller retains the authority to audit, assess, redetermine, and collect a Prior-Law Tax with respect to a taxable transaction, tax period, or liability arising before the Implementation Date, for the full period of the applicable statute of limitations under Chapter 111, Tax Code, or under the repealed statute, whichever is longer.
(b) A taxpayer retains the right to file a refund claim, protest, redetermination request, or judicial appeal with respect to a Prior-Law Tax, for the full period of the applicable statute of limitations under Chapter 111, Tax Code, or under the repealed statute, whichever is longer.
(c) The Comptroller may adopt rules coordinating the administration of Prior-Law Tax audits and refund claims with the administration of the tax imposed by Chapter 151-A, Tax Code.

Sec. 9.04. CRIMINAL LIABILITY RELATING TO PRIOR-LAW TAXES.

(a) A person who committed a criminal offense under a repealed provision of the Tax Code before the Implementation Date remains subject to prosecution, conviction, and sentence under that provision, for the full period of the applicable statute of limitations under Chapter 12, Code of Criminal Procedure, and Chapter 8, Penal Code, notwithstanding the repeal of the underlying tax provision by this Act.
(b) Chapter 42, Penal Code (Punishments for Tax Offenses), and any other provision of the Penal Code applicable to a tax offense, are preserved without modification.

Sec. 9.05. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

(a) The State Office of Administrative Hearings retains jurisdiction over an administrative hearing arising from a Prior-Law Tax, whether initiated before, on, or after the Implementation Date, and shall administer that hearing under the applicable prior law and under Chapter 2003, Government Code.
(b) A district court retains jurisdiction over a judicial appeal from an administrative determination arising from a Prior-Law Tax, and shall adjudicate that appeal under the applicable prior law.

ARTICLE 10. CONFORMING AMENDMENTS — CROSS-REFERENCE CLEANUP

Sec. 10.01. GENERAL CROSS-REFERENCE RULE.

(a) A reference in any statute, code, rule, order, opinion, judgment, contract, or other document to a Prior-Law Tax, or to a chapter or provision of law repealed by this Act, is, on and after the Implementation Date, a reference to the corresponding tax imposed by Chapter 151-A, Tax Code, or to the corresponding provision of the TPTRP Sales and Use Tax Act, the TPTRP Fund System Act, the TPTRP Bond Management Act, the TPTRP Transition Board Act, the TPTRP Remote Seller and Foreign Entity Act, or the TPTRP Texas Living Exemption Set Act, as the case may be, unless the context clearly requires otherwise.
(b) The Texas Legislative Council shall prepare a cross-reference table identifying, for each provision of law repealed by this Act, the corresponding provision of the primary implementing legislation. The table is a legislative aid and not itself enacted law, but it is entitled to persuasive weight in the interpretation of this Act.
(c) The Comptroller may adopt rules identifying specific cross-references to be updated in specific provisions of law and specifying the exact form of the update.

Sec. 10.02. TREATMENT OF CROSS-REFERENCES IN CONTRACTS, BOND DOCUMENTS, AND OTHER PRIVATE INSTRUMENTS.

(a) A cross-reference in a contract, bond indenture, security instrument, or other private instrument executed before the Implementation Date, to a Prior-Law Tax or to a repealed provision of law, is preserved with the same operative meaning it had immediately before the Implementation Date, as modified by the automatic substitution rule of Section 10.01(a) of this Act, so that the contractual, bond-related, or other private obligation of a party under such an instrument is not defeated by the repeal of the referenced tax or provision.
(b) A bond, note, or other debt instrument outstanding on the Implementation Date that pledges, dedicates, or is secured by a Prior-Law Tax is preserved and is administered as provided by the TPTRP Bond Management Act, so that the affected debt service is paid without interruption from the applicable share of the tax imposed by Chapter 151-A, Tax Code.
(c) A contract for goods or services executed by a state agency, political subdivision, or private party that references a Prior-Law Tax remains enforceable according to its terms, with the automatic substitution rule of Section 10.01(a) of this Act applied to any cross-reference to the repealed tax or provision.

Sec. 10.03. FUTURE CODIFICATION AND ERRATA.

(a) The Texas Legislative Council shall, as part of the codification of this Act into the applicable code chapters, effect the mechanical amendments necessary to strike or replace each cross-reference to a repealed provision, and to add each cross-reference to a corresponding provision of the primary implementing legislation. Mechanical amendments effected by the Texas Legislative Council under this subsection are not substantive changes to the underlying law.
(b) If, after the Implementation Date, the Comptroller identifies a provision of law affected by the repeals effected by this Act that this Act does not expressly amend, the Comptroller may, by rule, apply the automatic substitution rule of Section 10.01(a) of this Act to that provision, and shall publish notice of the substitution as errata to this Act. Substitutions published under this subsection are treated as part of this Act for purposes of legislative history and codification.

ARTICLE 11. SAVINGS, TRANSITION, AND EFFECTIVE DATE

Sec. 11.01. SAVINGS PROVISION — PRE-IMPLEMENTATION DATE LIABILITIES.

(a) The repeal of a statute by this Act does not affect:
(1) an obligation, liability, tax, penalty, forfeiture, right, remedy, cause of action, or defense arising under the repealed statute before the Implementation Date;
(2) the validity of a tax return, refund claim, credit, offset, protest, redetermination, audit, deficiency assessment, or judicial proceeding pending under the repealed statute on the Implementation Date;
(3) the accrual of interest or penalties on a liability arising under the repealed statute before the Implementation Date, subject to the interest and penalty rules of Chapter 111, Tax Code, as preserved by Section 9.02 of this Act; or
(4) the recovery, discharge, offset, or enforcement of a lien, judgment, or other security interest arising under the repealed statute.
(b) For purposes of this Act, a taxable transaction, tax period, or tax liability is treated as arising under prior law if the taxable transaction was consummated, the tax period ended, or the tax liability accrued, before the Implementation Date.

Sec. 11.02. AD VALOREM TAX LIEN WIND-DOWN.

(a) An ad valorem tax lien attached to property under Chapter 32, Tax Code, before the Implementation Date remains attached to the property until the underlying liability is paid, satisfied, discharged, or extinguished by operation of the applicable statute of limitations, without regard to the repeal of Chapter 32, Tax Code, by Section 2.02(a) of this Act.
(b) A taxing unit or the successor entity designated under Section 2.03(1) of this Act may enforce an ad valorem tax lien preserved by Subsection (a) of this section for the full period of the applicable statute of limitations under prior law.
(c) On satisfaction, discharge, or extinguishment of the last ad valorem tax lien preserved by Subsection (a) of this section attached to a property, the Comptroller shall record the release of the lien in the applicable county real property records.

Sec. 11.03. APPRAISAL DISTRICT WIND-DOWN.

(a) A county appraisal district in existence on the day before the Implementation Date is dissolved as an entity of local government effective on the Implementation Date, except to the extent its continued operation is required to complete the wind-down of pre-Implementation Date liabilities under this section.
(b) The Comptroller shall designate, by rule, a successor entity to complete the wind-down of pre-Implementation Date ad valorem tax liabilities, appraisal roll certification for the final tax year ending before the Implementation Date, appraisal review board proceedings pending on the Implementation Date, tax lien releases under Section 11.02 of this Act, and any other residual function that must be completed to give effect to the abolition of ad valorem taxation.
(c) The successor entity is funded from the Transition Fund administered under the TPTRP Transition Board Act, and from any residual balance of the appraisal district's operating fund.
(d) The Comptroller shall coordinate with the Texas Association of Appraisal Districts, the county tax assessor-collector of each county, and the affected taxing units to complete the transfer of records, employees, and residual functions from the appraisal district to the successor entity.

Sec. 11.04. TRANSITION-PERIOD TAX FILINGS AND REPORTS.

(a) A person required to file a tax return, information report, or other filing under a statute repealed by this Act, with respect to a tax period ending before the Implementation Date, shall file that return, report, or filing under prior law on the schedule established by prior law, without regard to the repeal of the underlying tax provision.
(b) A refund claim, credit, offset, or other administrative filing by a taxpayer with respect to a tax period ending before the Implementation Date shall be filed and processed under prior law.
(c) The Comptroller shall accept, process, and pay a refund on a claim filed under Subsection (b) of this section from the Comptroller's general operating appropriation, from the Transition Fund, or from another source designated by the Legislature.

Sec. 11.05. STATE FISCAL COORDINATION.

(a) The state fiscal biennium ending immediately before the Implementation Date is treated as the last biennium under prior tax law. The state fiscal biennium beginning immediately after the Implementation Date is treated as the first biennium under Chapter 151-A, Tax Code.
(b) The Comptroller shall coordinate with the Legislative Budget Board, the Governor's Office of Budget and Policy, and the state agencies affected by this Act to complete the accounting and fund-balance reconciliation necessary to give effect to the transition, including without limitation the wind-down of dedicated fund balances tied to a repealed tax and the establishment of successor dedicated fund balances tied to the corresponding tax under Chapter 151-A, Tax Code.

Sec. 11.06. EFFECTIVE DATE.

(a) Except as otherwise expressly provided, this Act takes effect on the Implementation Date established by Article VIII, Section 9.01(b), of the Texas Constitution.
(b) Sections 1.01 through 1.04, and Sections 10.01, 10.03, and 11.06 of this Act, take effect immediately upon this Act's enactment, as those provisions are administrative and interpretive and do not themselves repeal or amend any substantive tax provision.
(c) If this Act does not receive the vote necessary for immediate effect, Subsection (b) of this section takes effect on the 91st day after the last day of the legislative session in which this Act was enacted, and the remaining provisions of this Act take effect on the Implementation Date as provided by Subsection (a).

SEVERABILITY

If any provision of this Act, or the application of a provision to a person or circumstance, is held invalid, the invalidity does not affect any other provision or application of this Act that can be given effect without the invalid provision or application. To this end, the provisions of this Act are severable.
Drafting Notes — Version 1 (2026-08-06)
Package position. This is HB C, the seventh and final instrument of the seven-instrument TPTRP implementation package. HB C is the "cleanup" instrument: it performs no independent policy work of its own, but rather completes the constitutional command of Article VIII, Sections 1-m(c) and 1-x, by repealing each statute identified for repeal by the primary implementing legislation and by making the conforming amendments those repeals require.
Repealer sweep. The chapters repealed in full by HB C are:
  • Title 1, Tax Code (Property Tax Code, Chapters 1-43) — abolished by Article 2 of this Act
  • Chapter 48, Education Code (Foundation School Program)
  • Chapter 49, Education Code (Recapture)
  • Chapter 151, Tax Code (Limited Sales, Excise, and Use Tax) — audit/criminal/administrative provisions preserved via Article 9
  • Chapter 152, Tax Code (Motor Vehicle) — rate structure repealed, administrative provisions preserved via Section 7.01
  • Chapter 154, Tax Code (Cigarette)
  • Chapter 155, Tax Code (Cigars and Other Tobacco Products)
  • Chapter 156, Tax Code (Hotel Occupancy)
  • Chapter 158, Tax Code (Manufactured Housing) — rate repealed, administrative preserved via Section 7.03
  • Chapter 160, Tax Code (Boats and Boat Motors) — rate repealed, administrative preserved via Section 7.04
  • Chapter 162, Tax Code (Motor Fuel) — repealed to extent superseded
  • Chapter 171, Tax Code (Franchise Tax)
  • Chapter 182, Tax Code (Miscellaneous Gross Receipts on Utilities)
  • Chapter 183, Tax Code (Mixed Beverage)
  • Chapter 201, Tax Code (Gas Production)
  • Chapter 202, Tax Code (Oil Production)
  • Chapter 321, Tax Code (Municipal Sales and Use)
  • Chapter 322, Tax Code (Special Purpose Taxing Authority Sales and Use)
  • Chapter 323, Tax Code (County Sales and Use)
  • Chapter 351, Tax Code (Municipal Hotel Occupancy) — to extent superseded
  • Chapter 352, Tax Code (County Hotel Occupancy) — to extent superseded
  • Insurance Code premium tax chapters (221-229, 257) — to extent superseded
  • Insurance Code maintenance tax provisions (Chapters 251-255) — to extent they impose a tax
  • Occupations Code Chapter 2001 (Bingo) — tax provisions
  • Occupations Code Chapter 2153 (Coin-Operated Machines) — tax provisions
  • Local Government Code Chapter 334 (Venue Projects) — to extent superseded
Preserved verbatim. Chapter 111, Tax Code (Collection Procedures) is preserved without modification and continues to govern collection, refund, deficiency, penalty, interest, and audit administration for the tax imposed by Chapter 151-A. Chapter 490, Government Code (Transition Board) is preserved as enacted by the TPTRP Transition Board Act. Chapters 2256 and 2257, Government Code (Public Funds Investment Act; Collateral for Public Funds) are preserved as the governing framework for the Fund System Act investment provisions.
Constitutional basis. Article VIII, Section 1-m(c), directs the Legislature to abolish specific taxes on the Implementation Date. Article VIII, Section 9.01, sets the Implementation Date framework. Section 9.02(h), Temporary Provision, of the Texas Constitution, specifically directs the repeal of Chapters 48 and 49, Education Code. Article VIII, Section 1-p(i), preserves the wellhead/place-of-business framework that Section 4.02(c) and 4.03(c) cross-reference. Article VIII, Section 7-a, directs the school-fund allocation of motor fuel tax revenue preserved by Section 5.03(b).
Coordination with the primary implementing legislation. HB C makes no substantive amendment to any primary implementing legislation. Every substantive tax mechanic — rate, base, exemption, sourcing, allocation, distribution, permit administration — is established by the primary implementing legislation. HB C's role is limited to (i) repealing the statutes those Acts supersede, (ii) preserving administrative and procedural provisions that those Acts do not restate, (iii) severing tax-based linkages in other codes, and (iv) providing savings, transition, and effective-date rules.
Codification note. The Texas Legislative Council will effect the mechanical codification of this Act into the applicable code chapters. Section 10.03 authorizes errata cross-references published by the Comptroller as a supplement.

Change Log — Version 2 (2026-08-07)

# Section Edit description
v2.1 Whole Act Conformed former temporary constitutional citations to Article VIII, Section 9.01 and the former Section 9.02 temporary citation to Section 9.02(h).
v2.2 Secs. 2.03, 2.04, 6.01 Corrected the Transition Board, Transition Fund, and TEA/ISD administrative cross-references.
v2.3 Sec. 5.05 Added repeal of Chapter 181, Tax Code, and conforming treatment of cement transactions and former Foundation School Fund revenue.