By: Bonnen of Brazoria, Martinez Fischer, H.B. No. 31
Parker, Krause, Oliveira, et al.
A BILL TO BE ENTITLED
AN ACT
relating to decreasing the state sales and use tax rate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 151.051(b), Tax Code, is amended to read
as follows:
(b) The sales tax rate is the lower of 5.95 [6-1/4] percent
of the sales price of the taxable item sold or the rate adopted
under Section 151.0511.
SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
by adding Section 151.0511 to read as follows:
Sec. 151.0511. COMPTROLLER TAX RATE ADJUSTMENT. (a) On the
date the comptroller makes the transfer of any unencumbered
positive balance of general revenues from a preceding biennium to
the economic stabilization fund as described by Section 49-g(b),
Article III, Texas Constitution, the comptroller shall:
(1) identify an amount of money equal to 25 percent of
those unencumbered general revenues that are not transferred under
that subsection;
(2) estimate the amount of revenue attributable to the
taxes imposed under Sections 151.051 and 151.101 that would be
received by the comptroller during the current state fiscal
biennium if the taxes were imposed at the rate in effect on the date
the estimate is made; and
(3) subtract the amount of money identified under
Subdivision (1) from the amount of revenue estimated under
Subdivision (2).
(b) If the amount of money determined under Subsection
(a)(3) is greater than zero, the comptroller shall determine the
rate for purposes of Sections 151.051 and 151.101 that, if applied
beginning January 1 of the current state fiscal biennium, is
estimated to generate the amount of money determined by the
comptroller under Subsection (a)(3) for that biennium.
(c) Not later than December 15 of each odd-numbered year,
the comptroller shall:
(1) adopt the adjusted tax rate determined under
Subsection (b), rounded to the nearest thousandth;
(2) publish notice of the adjusted tax rate in the
Texas Register; and
(3) provide any other notice relating to the adjusted
tax rate that the comptroller considers appropriate.
(d) The adjusted tax rate adopted by the comptroller under
this section is effective on January 1 of the even-numbered year
following the date the rate is adopted.
(e) In a state fiscal year in which the amount of money
determined under Subsection (a)(3) is zero or less, the comptroller
shall adopt an adjusted tax rate of zero percent.
(f) An action taken by the comptroller under this section is
final and may not be appealed.
(g) The comptroller shall adopt rules to implement this
section.
SECTION 3. The comptroller of public accounts shall study
and report to the legislature on the impact of this Act on the rate
of the state sales and use tax and what further reductions in the
rate of the state sales and use tax may be made following a review of
existing exemptions from the state sales and use tax. The
comptroller shall provide the report to the legislature not later
than December 31, 2016.
SECTION 4. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 5. This Act takes effect January 1, 2016.