| 1 | 1 | | 85R4885 CJC-D |
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| 2 | 2 | | By: Swanson H.B. No. 1050 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the abolition of ad valorem taxes. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. (a) The legislature finds that: |
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| 10 | 10 | | (1) the imposition of ad valorem taxes is an |
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| 11 | 11 | | inherently inequitable means to generate revenue necessary to fund |
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| 12 | 12 | | the provision of essential services to residents of this state; |
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| 13 | 13 | | (2) ad valorem taxes may increase annually without |
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| 14 | 14 | | regard to the property owner's ability to pay; |
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| 15 | 15 | | (3) ad valorem taxes are perpetual and detrimental to |
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| 16 | 16 | | private property rights as secured by the Texas Constitution; |
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| 17 | 17 | | (4) the use of ad valorem taxes as a means to finance |
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| 18 | 18 | | the maintenance of public free schools has led directly to three |
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| 19 | 19 | | decades of school finance litigation in which the Texas Supreme |
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| 20 | 20 | | Court has referred to the system as "Byzantine" and has urged the |
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| 21 | 21 | | legislature to "choose a new path" of revenue for public free |
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| 22 | 22 | | schools; |
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| 23 | 23 | | (5) the use of ad valorem taxes by local governmental |
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| 24 | 24 | | entities as a means to generate revenue to fund the provision of |
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| 25 | 25 | | essential services places a disproportionate burden on those |
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| 26 | 26 | | residents that own property to pay for services that are enjoyed by |
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| 27 | 27 | | all residents; and |
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| 28 | 28 | | (6) the legislature has an obligation to ensure that |
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| 29 | 29 | | local governmental entities provide essential services in a manner |
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| 30 | 30 | | that is fair and fiscally responsible, and should encourage the use |
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| 31 | 31 | | of a more equitable source of revenue, such as the sales tax, to |
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| 32 | 32 | | fund the provision of those services. |
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| 33 | 33 | | (b) It is the intent of the legislature to abolish ad |
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| 34 | 34 | | valorem taxes and to create a more equitable means of funding the |
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| 35 | 35 | | provision of essential services to residents of this state by local |
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| 36 | 36 | | governmental entities and of meeting the state's constitutional |
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| 37 | 37 | | duty to make suitable provision for the support and maintenance of |
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| 38 | 38 | | an efficient system of public free schools. |
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| 39 | 39 | | SECTION 2. (a) Title 1, Tax Code, is repealed. |
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| 40 | 40 | | (b) Notwithstanding any other law, this state or a political |
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| 41 | 41 | | subdivision of this state may not impose an ad valorem tax. To the |
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| 42 | 42 | | extent of a conflict, this section controls over a conflicting |
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| 43 | 43 | | provision in a general or special law. |
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| 44 | 44 | | (c) The change in law made by this section does not affect |
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| 45 | 45 | | tax liability accruing before the effective date of this section. |
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| 46 | 46 | | That liability continues in effect as if this section had not been |
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| 47 | 47 | | enacted, and the former law is continued in effect for the |
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| 48 | 48 | | collection of taxes due and for civil and criminal enforcement of |
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| 49 | 49 | | the liability for those taxes. |
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| 50 | 50 | | (d) This section takes effect January 1, 2022. |
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| 51 | 51 | | SECTION 3. Except as otherwise provided by this Act, this |
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| 52 | 52 | | Act takes effect September 1, 2017. |
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