The report attempts to find alternative statewide revenue sources that would relieve school property tax burden of Texans. It provides brief background information on the current state and local tax system and then analyzes major problems of this tax system. Based on desirable state tax evaluation criteria, it examines alternative tax proposals of the Governor's Staff Work Group which could replace the school property tax. The report analyzes implications on state tax policy for each of the governor's staff work group's tax proposals. In order to establish a fair, stable, and efficient tax system in the state, the report suggests that alternative options such as a state income tax should be considered in the tax reform.