85R4885 CJC-D
By: Swanson H.B. No. 1050
A BILL TO BE ENTITLED
AN ACT
relating to the abolition of ad valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature finds that:
(1) the imposition of ad valorem taxes is an
inherently inequitable means to generate revenue necessary to fund
the provision of essential services to residents of this state;
(2) ad valorem taxes may increase annually without
regard to the property owner's ability to pay;
(3) ad valorem taxes are perpetual and detrimental to
private property rights as secured by the Texas Constitution;
(4) the use of ad valorem taxes as a means to finance
the maintenance of public free schools has led directly to three
decades of school finance litigation in which the Texas Supreme
Court has referred to the system as "Byzantine" and has urged the
legislature to "choose a new path" of revenue for public free
schools;
(5) the use of ad valorem taxes by local governmental
entities as a means to generate revenue to fund the provision of
essential services places a disproportionate burden on those
residents that own property to pay for services that are enjoyed by
all residents; and
(6) the legislature has an obligation to ensure that
local governmental entities provide essential services in a manner
that is fair and fiscally responsible, and should encourage the use
of a more equitable source of revenue, such as the sales tax, to
fund the provision of those services.
(b) It is the intent of the legislature to abolish ad
valorem taxes and to create a more equitable means of funding the
provision of essential services to residents of this state by local
governmental entities and of meeting the state's constitutional
duty to make suitable provision for the support and maintenance of
an efficient system of public free schools.
SECTION 2. (a) Title 1, Tax Code, is repealed.
(b) Notwithstanding any other law, this state or a political
subdivision of this state may not impose an ad valorem tax. To the
extent of a conflict, this section controls over a conflicting
provision in a general or special law.
(c) The change in law made by this section does not affect
tax liability accruing before the effective date of this section.
That liability continues in effect as if this section 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.
(d) This section takes effect January 1, 2022.
SECTION 3. Except as otherwise provided by this Act, this
Act takes effect September 1, 2017.