Some in Austin are considering several proposals to replace a portion of the local school property tax with a statewide business activity tax (better known as a value-added tax), as part of the effort to eliminate “Robin Hood.” This report explores the pros and cons of a BAT on the state economy and its role as a source of education financing.
Local Government
Growing Pains: The Cost and Contribution of Impact Fees in Texas
Texas’s rapidly growing population requires new infrastructure and improvements, which oftentimes come at great expense. To fund these projects, local officials often impose impact fees on new development—but their use comes at a cost. Key points: Texas is the fastest-growing state in the nation. As such, it has robust infrastructure requirements. To help finance capital...
August 12, 2026