By: Taylor S.B. No. 2441
A BILL TO BE ENTITLED
AN ACT
Relating to increasing the state sales and use tax rate, and
requiring a reduction in school maintenance and operation ad
valorem taxes; making and appropriation; increasing the rate of a
tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 42.2516(a), Education Code, is amended
to read as follows:
(a) In this title, "state compression percentage" means the
percentage of a school district's adopted maintenance and
operations tax rate for the 2005 tax year that serves as the basis
for state funding. The Commissioner shall determine the state
compression percentage each year based on the percentage by which
districts' maintenance of operations tax rates can be lowered with
revenue collected under Section 151.803, Tax Code. [If the state
compression percentage is not established by appropriation for a
school year, the commissioner shall determine the state compression
percentage for each school year based on the percentage by which a
district is able to reduce the district's maintenance and
operations tax rate for that year, as compared to the district's
adopted maintenance and operations tax rate for the 2005 tax year,
as a result of state funds appropriated for that year from the
property tax relief fund established under Section 403.109,
Government Code, or from another funding source available for
school district property tax relief.]
SECTION 2. Section 151.051(b), Tax Code, is amended to read
as follows:
(b) The sales tax rate is [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 3. 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 an account in the foundation school fund. Money credited
to the account may be appropriated only to the Texas Education
Agency for use by the commissioner of education to provide property
tax relief by compressing property tax rates.
SECTION 4. For the state fiscal year beginning September 1,
2020, all money credited to the account created under Section
151.803, Tax Code, as added by this Act, preceding or during that
year is appropriated from that account to the Texas Education
Agency to be used by the commissioner of education to increase the
basic allotment, equalized wealth level, and guaranteed level under
Chapters 41 and 42, Education Code, and require the compression of
property tax rates.
SECTION 5. The change in law made by this Act does not
affect taxes imposed before the effective date of this Act, and the
law in effect before that date is continued in effect for purposes
of the liability for and collection of those taxes.
SECTION 6. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by _.J.R. No. _, 86th
Legislature, Regular Session, 2019, is approved by the voters. If
that amendment is not approved by the voters, this Act has no
effect.