Texas 2017 - 85th 1st C.S.

Texas House Bill HB91 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85S10039 CJC-D
2	2	By: Swanson H.B. No. 91
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the abolition of ad valorem taxes and a study of
8	8	alternative methods of taxation to replace revenue lost to
9	9	political subdivisions as a result of the abolition of ad valorem
10	10	taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. (a) The legislature finds that:
13	13	(1) the imposition of ad valorem taxes is an
14	14	inherently inequitable means to generate revenue necessary to fund
15	15	the provision of essential services to residents of this state;
16	16	(2) ad valorem taxes may increase annually without
17	17	regard to the property owner's ability to pay;
18	18	(3) ad valorem taxes are perpetual and detrimental to
19	19	private property rights as secured by the Texas Constitution;
20	20	(4) the use of ad valorem taxes as a means to finance
21	21	the maintenance of public free schools has led directly to three
22	22	decades of school finance litigation in which the Texas Supreme
23	23	Court has referred to the system as "Byzantine" and has urged the
24	24	legislature to "choose a new path" of revenue for public free
25	25	schools;
26	26	(5) the use of ad valorem taxes by local governmental
27	27	entities as a means to generate revenue to fund the provision of
28	28	essential services places a disproportionate burden on those
29	29	residents that own property to pay for services that are enjoyed by
30	30	all residents; and
31	31	(6) the legislature has an obligation to ensure that
32	32	local governmental entities provide essential services in a manner
33	33	that is fair and fiscally responsible, and should encourage the use
34	34	of a more equitable source of revenue, such as the sales tax, to
35	35	fund the provision of those services.
36	36	(b) It is the intent of the legislature to abolish ad
37	37	valorem taxes and to create a more equitable means of funding the
38	38	provision of essential services to residents of this state by local
39	39	governmental entities and of meeting the state's constitutional
40	40	duty to make suitable provision for the support and maintenance of
41	41	an efficient system of public free schools.
42	42	SECTION 2. (a) The comptroller of public accounts shall
43	43	conduct a comprehensive study of alternative methods of taxation to
44	44	replace local tax revenue that will be lost when ad valorem taxes
45	45	are abolished.
46	46	(b) For each alternative method of taxation considered by
47	47	the comptroller, the comptroller shall:
48	48	(1) consider whether political subdivisions that
49	49	currently impose ad valorem taxes would have the authority to
50	50	impose the proposed alternative tax;
51	51	(2) determine the average tax rate for the proposed
52	52	alternative tax imposed by each type of political subdivision that
53	53	would be necessary to generate the same amount of tax revenue as the
54	54	amount of tax revenue lost as a result of the abolition of ad
55	55	valorem taxes;
56	56	(3) determine, if appropriate, the effect that
57	57	broadening the application of the proposed alternative tax at the
58	58	local level would have on the tax rates identified under
59	59	Subdivision (2) of this subsection;
60	60	(4) identify whether tax revenue generated by the
61	61	proposed alternative tax would require redistribution to offset
62	62	disparities in available local tax revenue as a result of the
63	63	abolition of ad valorem taxes and, if so, evaluate the different
64	64	mechanisms of redistribution available; and
65	65	(5) identify and examine any other issue that would
66	66	need to be addressed to implement the abolition of ad valorem taxes.
67	67	(c) On request of the comptroller, a state agency or
68	68	political subdivision shall provide information for and assistance
69	69	in conducting the study under this section.
70	70	(d) Not later than December 1, 2018, the comptroller shall
71	71	prepare and submit to the governor, lieutenant governor, speaker of
72	72	the house of representatives, and members of the legislature a
73	73	written report containing the results of the study and any
74	74	recommendations for legislative or other action.
75	75	(e) This section expires September 1, 2019.
76	76	SECTION 3. (a) Title 1, Tax Code, is repealed.
77	77	(b) Notwithstanding any other law, this state or a political
78	78	subdivision of this state may not impose an ad valorem tax. To the
79	79	extent of a conflict, this section controls over a conflicting
80	80	provision in a general or special law.
81	81	(c) The change in law made by this section does not affect
82	82	tax liability accruing before the effective date of this section.
83	83	That liability continues in effect as if this section had not been
84	84	enacted, and the former law is continued in effect for the
85	85	collection of taxes due and for civil and criminal enforcement of
86	86	the liability for those taxes.
87	87	(d) This section takes effect January 1, 2022.
88	88	SECTION 4. Except as otherwise provided by this Act, this
89	89	Act takes effect December 1, 2017.