| 1 | 1 | | 85S11938 CJC-D |
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| 2 | 2 | | By: White H.B. No. 358 |
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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 supporting public education funding through an increase |
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| 8 | 8 | | in the state sales and use tax rate and requiring a reduction in |
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| 9 | 9 | | school district maintenance and operation ad valorem taxes; making |
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| 10 | 10 | | an appropriation; increasing the rate of a tax. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 151.051(b), Tax Code, is amended to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (b) The sales tax rate is 7.25 [6-1/4] percent of the sales |
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| 15 | 15 | | price of the taxable item sold. |
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| 16 | 16 | | SECTION 2. Subchapter M, Chapter 151, Tax Code, is amended |
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| 17 | 17 | | by adding Section 151.803 to read as follows: |
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| 18 | 18 | | Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL |
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| 19 | 19 | | DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801, |
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| 20 | 20 | | the comptroller shall deposit an amount of revenue equal to the |
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| 21 | 21 | | proceeds derived from the collection of taxes imposed by this |
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| 22 | 22 | | chapter attributable to the portion of the tax rate in excess of |
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| 23 | 23 | | 6.25 percent of the sales price of the taxable item sold to the |
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| 24 | 24 | | credit of an account in the general revenue fund. Money credited to |
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| 25 | 25 | | the account may be appropriated only to the Texas Education Agency |
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| 26 | 26 | | for use by the commissioner of education to provide property tax |
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| 27 | 27 | | relief by reducing the state compression percentage under Section |
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| 28 | 28 | | 42.2516, Education Code. |
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| 29 | 29 | | SECTION 3. For the state fiscal year beginning September 1, |
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| 30 | 30 | | 2018, all money credited to the account created under Section |
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| 31 | 31 | | 151.803, Tax Code, as added by this Act, preceding or during that |
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| 32 | 32 | | year is appropriated from that account to the Texas Education |
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| 33 | 33 | | Agency to be used by the commissioner of education to reduce the |
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| 34 | 34 | | state compression percentage, as defined by Section 42.2516(a), |
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| 35 | 35 | | Education Code, to the lowest percentage possible for the 2018-2019 |
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| 36 | 36 | | school year. |
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| 37 | 37 | | SECTION 4. The change in law made by this Act does not |
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| 38 | 38 | | affect taxes imposed before the effective date of this Act, and the |
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| 39 | 39 | | law in effect before that date is continued in effect for purposes |
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| 40 | 40 | | of the liability for and collection of those taxes. |
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| 41 | 41 | | SECTION 5. This Act takes effect January 1, 2018. |
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