Texas Senate Bill SJR76

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment to reduce school district ad valorem tax rates through an increase in the state sales and use tax rate.

Impact

If passed, SJR76 could significantly alter the financial landscape for public school funding in Texas. By redirecting increased sales tax revenues to reduce school district property taxes, the bill could alleviate some of the financial burdens on homeowners while ensuring that schools continue to receive necessary funding. This shift could affect how schools fund programs and operations, as they might have to rely more on sales tax revenues rather than property taxes, which can be subject to fluctuations and varying local economic conditions.

Summary

SJR76 is a Senate Joint Resolution that proposes a constitutional amendment aimed at reducing school district ad valorem tax rates by increasing the state sales and use tax rate. Specifically, the resolution seeks to amend Article VIII of the Texas Constitution by adding a new section that would allow for an increase in the sales tax rate. The revenue generated from this increase would be earmarked solely for the purpose of lowering property tax rates for school districts, thereby providing a financial benefit to homeowners and possibly improving school funding dynamics.

Contention

The bill has sparked a range of opinions among legislators and constituents. Proponents argue that this change could make taxation fairer by distributing the tax burden more evenly, particularly in local jurisdictions experiencing rising property values. However, opponents may raise concerns about the potential for increased sales tax rates to unfairly burden lower-income residents who may spend a larger proportion of their income on sales taxes. Additionally, there may be debate around the long-term implications for public school financing and how dependency on sales tax revenues could affect stability in funding, especially during economic downturns.