85S11938 CJC-D
By: White H.B. No. 358
A BILL TO BE ENTITLED
AN ACT
relating to supporting public education funding through an increase
in the state sales and use tax rate and requiring a reduction in
school district maintenance and operation ad valorem taxes; making
an appropriation; increasing the rate of a tax.
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 7.25 [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 2. Subchapter M, Chapter 151, Tax Code, is amended
by adding Section 151.803 to read as follows:
Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL
DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801,
the comptroller shall deposit an amount of revenue equal to the
proceeds derived from the collection of taxes imposed by this
chapter attributable to the portion of the tax rate in excess of
6.25 percent of the sales price of the taxable item sold to the
credit of an account in the general revenue fund. Money credited to
the account may be appropriated only to the Texas Education Agency
for use by the commissioner of education to provide property tax
relief by reducing the state compression percentage under Section
42.2516, Education Code.
SECTION 3. For the state fiscal year beginning September 1,
2018, all money credited to the account created under Section
151.803, Tax Code, as added by this Act, preceding or during that
year is appropriated from that account to the Texas Education
Agency to be used by the commissioner of education to reduce the
state compression percentage, as defined by Section 42.2516(a),
Education Code, to the lowest percentage possible for the 2018-2019
school year.
SECTION 4. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before that date is continued in effect for purposes
of the liability for and collection of those taxes.
SECTION 5. This Act takes effect January 1, 2018.