86R29881 SRA-F
By: Huberty H.B. No. 4621
Substitute the following for H.B. No. 4621:
By: Murphy C.S.H.B. No. 4621
A BILL TO BE ENTITLED
AN ACT
relating to the state sales tax rate and the use of certain revenue
from state sales and use taxes to reduce school district
maintenance and operations ad valorem tax rates; 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 151.804 to read as follows:
Sec. 151.804. USE OF CERTAIN REVENUE FOR SCHOOL DISTRICT AD
VALOREM TAX REDUCTION. An amount equal to the proceeds from the
collection of taxes imposed by this chapter attributable to the
portion of the tax rates in excess of 6.25 percent may be used only
to provide property tax relief through reduction of the state
compression percentage, as defined by Section 42.2516(a),
Education Code.
SECTION 3. The change in law made by this Act does not
affect tax liability accruing before the effective date of this
Act. That liability continues in effect as if this Act had not been
enacted, and the former law is continued in effect for the
collection of taxes due and for civil and criminal enforcement of
the liability for those taxes.
SECTION 4. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, to provide property tax relief by reducing
school district maintenance and operations ad valorem tax rates and
increasing the state sales and use tax rates is approved by the
voters. If that proposed constitutional amendment is not approved
by the voters, this Act has no effect.