81R2611 KLA-D
By: Kolkhorst H.B. No. 508
A BILL TO BE ENTITLED
AN ACT
relating to a study of the effect on this state's economy of
replacing all state and school district ad valorem tax revenue with
revenue from a transaction tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The comptroller shall conduct a study to
determine the effect on this state's economy of imposing a
transaction tax that:
(1) taxes every transaction that occurs in this state;
and
(2) is electronically collected by financial
institutions using banking data systems that are used in other
economies for that purpose.
(b) Before collecting information for purposes of the
study, the comptroller shall seek assistance from leading experts
on automated payment transaction taxes to establish parameters,
information collection techniques, and reasonable legal
assumptions for the study. Experts from whom the comptroller must
seek assistance include:
(1) persons who pioneered the concept of the
transaction tax;
(2) persons who direct national projects on
transaction taxes; and
(3) a professor of law and a professor of economics
from public institutions of higher education in this state.
(c) The comptroller shall use the parameters, techniques,
and legal assumptions established under Subsection (b) of this
section to determine the tax base available for a transaction tax by
collecting information from financial institutions in this state.
Information collected must include statistics regarding the total
number of debits that occur during a prescribed period from
accounts at those institutions that are held by residents of this
state or by businesses domiciled in this state. The comptroller has
the authority to collect, and, notwithstanding any other law, those
institutions shall provide, the information described by this
subsection.
(d) The comptroller may not incur costs in excess of
$200,000 in conducting the study.
(e) The comptroller and the persons described by Subsection
(b) of this section shall analyze the information collected under
Subsection (c) of this section and prepare a report that:
(1) describes the parameters, techniques, and legal
assumptions established under Subsection (b) of this section that
were used in conducting the study;
(2) estimates the tax base available for a transaction
tax, based on information collected under Subsection (c) of this
section;
(3) states the transaction tax rate necessary to
achieve revenue neutrality, assuming that the transaction tax was
imposed at that rate and all other state taxes and school district
ad valorem taxes were abolished; and
(4) analyzes the effects on this state's economy of
imposing the transaction tax at the rate specified by Subdivision
(3) of this subsection and abolishing all other state taxes and
school district ad valorem taxes.
(f) Not later than July 1, 2010, the comptroller shall
submit to the legislature the report prepared under Subsection (e)
of this section.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.