Monitoring the Session

HB 1508

Metcalf’s bill repealing the entire franchise tax

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Will MetcalfRHouse 16

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the repeal of the franchise tax.

Caption from analyzed text · version I.

Summary

All of Chapter 171. Gone.

The bill repeals the entire Texas franchise tax in Chapter 171 of the Tax Code. It touches every business entity that now owes the franchise tax, plus the comptroller, secretary of state and attorney general who collect and enforce it. Starting January 1, 2026, businesses stop filing franchise tax reports and paying the tax, including for the period ending December 31, 2025, while old audits, refunds and forfeiture actions can still be finished under the old law.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 1226 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 1226 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.PENDING FOREVER. Heard by the House Ways & Means committee on Apr 28, 2025 and left pending. Never voted out. The bill died.

Receipt

The receipt

89R-HB1508 · 2024-12-04

SOLD BY

Rep. Will MetcalfRHouse 16

ITEM

relating to the repeal of the franchise tax.

WHAT IT DOES

All of Chapter 171. Gone.

The bill repeals the entire Texas franchise tax in Chapter 171 of the Tax Code. It touches every business entity that now owes the franchise tax, plus the comptroller, secretary of state and attorney general who collect and enforce it. Starting January 1, 2026, businesses stop filing franchise tax reports and paying the tax, including for the period ending December 31, 2025, while old audits, refunds and forfeiture actions can still be finished under the old law.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026($5,707,309,000)

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB1508, As Introduced: a negative impact of ($11,657,181,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,176,692,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

First year · FY 2026 · ($5,707,309,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Ways & Means
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Will Metcalf

Donors

Texans for Lawsuit Reform PAC$150KAssociated Republicans of Texas Campaign Fund$54KDustin Burrows Campaign$45K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Nov 7, 2024 to Oct 19, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$149,922.40

Texans for Lawsuit Reform PAC

$149,922.40

Cash
$70,000.00
Paid by others
$79,922.40
Total
$149,922.40
advertising $37,500.00polling $27,750.00mail $14,372.40fundraiser $300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 8, 2024 to Aug 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100982185, 100998989, 101030949, 101035543, 101059927, 101068041.

Associated Republicans of Texas Campaign Fund$54,402.88

Associated Republicans of Texas Campaign Fund

$54,402.88

Cash
$0.00
Paid by others
$54,402.88
Total
$54,402.88
television $52,000.00text $1,402.88digital $1,000.00

Also funds 20 other sitting lawmakers.

Derived recipient stock · Nov 4, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Jan 27, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100998989, 101034987, 101035543.

Dustin Burrows Campaign$45,000.00

Dustin Burrows Campaign

$45,000.00

Cash
$35,000.00
Paid by others
$10,000.00
Total
$45,000.00
polling $10,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Dec 29, 2025 to Jan 26, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101030949, 101035543.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$149,922.40

Cash
$70,000.00
Paid by others
$79,922.40
Total
$149,922.40
advertising $37,500.00polling $27,750.00mail $14,372.40fundraiser $300.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Nov 8, 2024 to Aug 12, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100982185, 100998989, 101030949, 101035543, 101059927, 101068041.

×

Associated Republicans of Texas Campaign Fund

$54,402.88

Cash
$0.00
Paid by others
$54,402.88
Total
$54,402.88
television $52,000.00text $1,402.88digital $1,000.00

Also funds 20 other sitting lawmakers.

Derived recipient stock · Nov 4, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 25, 2025 to Jan 27, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100998989, 101034987, 101035543.

×

Dustin Burrows Campaign

$45,000.00

Cash
$35,000.00
Paid by others
$10,000.00
Total
$45,000.00
polling $10,000.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team
Sources

Derived itemized flow · Dec 29, 2025 to Jan 26, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101030949, 101035543.

Votes

No floor vote loaded for this bill.

Fiscal
Net to General Revenue · FY 2026($5,707,309,000)

LBB estimate, flow · fiscal note version I · ( ) = negative · source

Sources

Fiscal note · version I · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB1508, As Introduced: a negative impact of ($11,657,181,000) through the biennium ending August 31, 2027. Additionally, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($4,176,692,000) for the 2026-27 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program.

First year · FY 2026 · ($5,707,309,000)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 1226

by Rep. Metcalf, same lead author · Died in committee · same text

Introduced text

Last action, Mar 3, 2023: Referred to Ways & Means

Relating to the repeal of the franchise tax.

Caption, 88R bill history

Sources

Texas House · Filed Dec 4, 2024

04/28/2025 H Left pending in committee

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Subjects

Taxation--Franchise

Text

The text as introduced · 268 words

89R50 SRA-D

By: Metcalf
H.B. No. 1508

A BILL TO BE ENTITLED

AN ACT

relating to the repeal of the franchise tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 171, Tax Code, is repealed.

SECTION 2. A taxable entity that is subject to the franchise

tax imposed under Chapter 171, Tax Code, on December 31, 2025, is

not required to file a franchise tax report or pay a tax on the

taxable entity's taxable margin for the period ending on that date.

SECTION 3. Chapter 171, Tax Code, as that chapter existed

immediately before its repeal by this Act, and Subtitle B, Title 2,

Tax Code, continue to apply to audits, deficiencies,

redeterminations, and refunds of any tax due or collected under

Chapter 171 until barred by limitations.

SECTION 4. The repeal of Chapter 171, Tax Code, does not

affect:

(1) the status of a taxable entity that has had its

corporate privileges, certificate of authority, certificate of

organization, certificate of limited partnership, corporate

charter, or registration revoked, suit filed against it, or a

receiver appointed under Subchapter F, G, or H of that chapter;

(2) the ability of the comptroller of public accounts,

secretary of state, or attorney general to take action against a

taxable entity under Subchapter F, G, or H of that chapter for

actions that took place before the repeal; or

(3) the right of a taxable entity to contest a

forfeiture, revocation, lawsuit, or appointment of a receiver under

Subchapter F, G, or H of that chapter.

SECTION 5. This Act takes effect January 1, 2026.