By: Murr, Burrows, Burns, Canales, Darby, H.B. No. 297
et al.
A BILL TO BE ENTITLED
AN ACT
relating to the public school finance system, the elimination of
school district maintenance and operations ad valorem taxes, and
the creation of a joint interim committee on the elimination of
those taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 26, Tax Code, is amended by adding
Section 26.035 to read as follows:
Sec. 26.035. PROHIBITION ON IMPOSITION OF MAINTENANCE AND
OPERATIONS TAX BY SCHOOL DISTRICTS; AUTHORIZATION FOR ENRICHMENT
TAX. (a) Notwithstanding any other law and except as provided by
Subsection (b), beginning January 1, 2022:
(1) a school district may not impose a tax for
maintenance and operations purposes; and
(2) each school district is entitled to funding under
Chapters 42 and 46, Education Code, for each school year as if the
district had:
(A) a maintenance and operations tax rate equal
to the state maximum compressed tax rate as defined by Section
42.101, Education Code; and
(B) no local share for purposes of Section
42.253, Education Code.
(b) Subsection (a) does not affect the authority of a school
district to impose an enrichment tax at a rate not to exceed $0.17
per $100 of taxable value of property in the district for the
purpose of providing additional revenue to enrich the educational
opportunities of students enrolled in the district. The revenue
attributable to the tax authorized under this subsection is in
addition to any money received by the district from the state.
(c) A reference in this code, the Education Code, or any
other law to a school district's authority to impose a maintenance
tax or a maintenance and operations tax may not be construed in a
manner inconsistent with this section.
SECTION 2. (a) In this section, "committee" means the joint
interim committee on the elimination of school district maintenance
and operations ad valorem taxes.
(b) The joint interim committee on the elimination of school
district maintenance and operations ad valorem taxes is composed
of:
(1) four members of the house of representatives
appointed by the speaker of the house of representatives;
(2) four senators appointed by the lieutenant
governor;
(3) three members appointed by the governor;
(4) one advisory member of an organization interested
in the effect of consumption taxes on low-income and
moderate-income households and the effect of consumption taxes on
consumer spending in this state appointed by the speaker of the
house of representatives;
(5) one advisory member of an organization interested
in the effect of consumption taxes on low-income and
moderate-income households and the effect of consumption taxes on
consumer spending in this state appointed by the lieutenant
governor;
(6) one advisory member of an organization
representing retailers and other businesses in competition with
businesses in neighboring states that would be affected by higher
consumption taxes appointed by the speaker of the house of
representatives; and
(7) one advisory member of an organization
representing retailers and other businesses in competition with
businesses in neighboring states that would be affected by higher
consumption taxes appointed by the lieutenant governor.
(b-1) The advisory members appointed under Subsection (b)
of this section are non-voting members of the committee.
(c) The speaker of the house of representatives and the
lieutenant governor shall make the appointments under Subsection
(b) of this section not later than the 60th day after the effective
date of this Act.
(d) The speaker of the house of representatives and the
lieutenant governor shall each designate a co-chair from among the
committee members.
(e) The committee shall convene at the joint call of the
co-chairs.
(f) The committee has all other powers and duties provided
to a special or select committee by the rules of the senate and
house of representatives, by Subchapter B, Chapter 301, Government
Code, and by policies of the senate and house committees on
administration.
(g) The committee shall consider and evaluate:
(1) the effectiveness of increasing the rate or
expanding the application of consumption taxes currently imposed by
the state and using the revenue attributable to the increase or
expansion to meet the state's constitutional duty to make suitable
provision for the support and maintenance of an efficient system of
public free schools in the state;
(2) the effectiveness of imposing consumption taxes
not currently imposed by the state and using the revenue
attributable to the imposition of those taxes to meet the state's
constitutional duty to make suitable provision for the support and
maintenance of an efficient system of public free schools in the
state;
(3) the ability of state-imposed consumption taxes to
adequately respond to annual changes in funding needs that are
unique to school districts in the state; and
(4) the effects of an increase in consumption taxes on
the residents of this state and businesses located in this state.
(h) Not later than November 1, 2020, the committee shall
provide to the legislature a written report:
(1) addressing the feasibility of using consumption
taxes for the support and maintenance of an efficient system of
public free schools in the state;
(2) proposing a comprehensive plan to use revenue
attributable to consumption taxes for the support and maintenance
of an efficient system of public free schools in the state; and
(3) proposing legislation necessary to implement the
comprehensive plan described by Subdivision (2) of this subsection.
(i) The proposals made in the report under Subsection (h) of
this section must allow for the imposition by a school district of
an ad valorem tax at a rate not to exceed $0.17 per $100 of taxable
value of property in the district for the purpose of enriching
educational opportunities for students enrolled in the district.
(j) The committee is abolished January 1, 2021.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.