Texas House Bill HB91

Texas 2021 - 87th 3rd C.S.

Caption

Relating to the elimination of school district maintenance and operations ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

Impact

If enacted, HB91 would fundamentally alter the fiscal landscape for school financing in Texas by disallowing traditional maintenance and operations property taxes that schools have historically relied upon for funding. This could lead to significant changes in budget allocation for school districts, as they will have to navigate new methods of revenue generation, potentially shifting towards consumption taxes as outlined in the creation of a joint interim committee that will evaluate these alternatives.

Summary

House Bill 91 proposes the elimination of school district maintenance and operations ad valorem taxes starting January 1, 2024. The bill aims to alleviate tax burdens on local residents while enabling school districts to impose an 'enrichment tax' of up to $0.17 per $100 of taxable property. This enrichment tax is meant to provide additional resources for improving educational opportunities in the districts. The bill's framework suggests a shift in how funding for schools will be managed, suggesting reliance on alternative forms of taxation to sustain school districts effectively.

Contention

The bill is expected to generate debate and possible contention particularly around the adequacy of the proposed methods for funding education without the maintenance and operations tax. Critics might argue that the reliance on consumption taxes could disproportionately impact low-income families, as these taxes are regressive by nature. Furthermore, the establishment of a committee to explore these funding alternatives raises questions about the feasibility and effectiveness of such initiatives in ensuring schools maintain adequate funding levels. Stakeholders will likely voice concerns regarding how educational standards and accessibility may hinge on these changes.