86R5903 CJC-D
By: Cain H.B. No. 4363
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the state sales and use tax rate for the
purpose of reducing school district maintenance and operations ad
valorem taxes and a study of additional changes to the rate and
application of the state sales and use tax for that same purpose;
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 10.25 [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 the property tax relief fund. Money credited to the fund
under this section may be appropriated only to reduce school
district maintenance and operations ad valorem tax rates in a
manner consistent with Section 403.109, Government Code.
SECTION 3. (a) The comptroller of public accounts shall
study the rate of, and the exemptions, discounts, exclusions,
credits, and special reporting methods applicable to, the state
sales and use tax for the purpose of identifying alternative
sources of funding for public primary and secondary education in
this state other than local property taxes.
(b) In the study, the comptroller must:
(1) determine the intended purpose of each exemption,
discount, exclusion, credit, or special reporting method and
evaluate whether the exemption, discount, exclusion, credit, or
special reporting method achieves that purpose;
(2) evaluate the effect of each exemption, discount,
exclusion, credit, or special reporting method on state revenue;
and
(3) evaluate the rate at which the state sales and use
tax would need to be imposed to fully fund the cost of public
primary and secondary education in this state if:
(A) each exemption, discount, exclusion, credit,
or special reporting method identified by the comptroller as
underperforming were repealed; and
(B) school district maintenance and operations
ad valorem taxes were abolished.
(c) Not later than November 1, 2020, the comptroller shall
prepare and deliver to the governor, the lieutenant governor, and
each member of the legislature a report of the findings of the
study.
(d) This section expires January 1, 2021.
SECTION 4. This Act takes effect October 1, 2019.