Texas 2019 - 86th Regular

Texas Senate Bill SB2441 Compare Versions

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

Old	New	Differences
1	1	By: Taylor S.B. No. 2441
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	Relating to increasing the state sales and use tax rate, and
7	7	requiring a reduction in school maintenance and operation ad
8	8	valorem taxes; making and appropriation; increasing the rate of a
9	9	tax.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 42.2516(a), Education Code, is amended
12	12	to read as follows:
13	13	(a) In this title, "state compression percentage" means the
14	14	percentage of a school district's adopted maintenance and
15	15	operations tax rate for the 2005 tax year that serves as the basis
16	16	for state funding. The Commissioner shall determine the state
17	17	compression percentage each year based on the percentage by which
18	18	districts' maintenance of operations tax rates can be lowered with
19	19	revenue collected under Section 151.803, Tax Code. [If the state
20	20	compression percentage is not established by appropriation for a
21	21	school year, the commissioner shall determine the state compression
22	22	percentage for each school year based on the percentage by which a
23	23	district is able to reduce the district's maintenance and
24	24	operations tax rate for that year, as compared to the district's
25	25	adopted maintenance and operations tax rate for the 2005 tax year,
26	26	as a result of state funds appropriated for that year from the
27	27	property tax relief fund established under Section 403.109,
28	28	Government Code, or from another funding source available for
29	29	school district property tax relief.]
30	30	SECTION 2. Section 151.051(b), Tax Code, is amended to read
31	31	as follows:
32	32	(b) The sales tax rate is [6-1/4] percent of the sales
33	33	price of the taxable item sold.
34	34	SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended
35	35	by adding Section 151.803 to read as follows:
36	36	Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL
37	37	DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801,
38	38	the comptroller shall deposit an amount of revenue equal to the
39	39	proceeds derived from the collection of taxes imposed by this
40	40	chapter attributable to the portion of the tax rate in excess of
41	41	6.25 percent of the sales price of the taxable item sold to the
42	42	credit of an account in the foundation school fund. Money credited
43	43	to the account may be appropriated only to the Texas Education
44	44	Agency for use by the commissioner of education to provide property
45	45	tax relief by compressing property tax rates.
46	46	SECTION 4. For the state fiscal year beginning September 1,
47	47	2020, all money credited to the account created under Section
48	48	151.803, Tax Code, as added by this Act, preceding or during that
49	49	year is appropriated from that account to the Texas Education
50	50	Agency to be used by the commissioner of education to increase the
51	51	basic allotment, equalized wealth level, and guaranteed level under
52	52	Chapters 41 and 42, Education Code, and require the compression of
53	53	property tax rates.
54	54	SECTION 5. The change in law made by this Act does not
55	55	affect taxes imposed before the effective date of this Act, and the
56	56	law in effect before that date is continued in effect for purposes
57	57	of the liability for and collection of those taxes.
58	58	SECTION 6. This Act takes effect January 1, 2020, but only
59	59	if the constitutional amendment proposed by _.J.R. No. _, 86th
60	60	Legislature, Regular Session, 2019, is approved by the voters. If
61	61	that amendment is not approved by the voters, this Act has no
62	62	effect.