Texas 2023 - 88th Regular

Texas House Bill HB1513

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the elimination of ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

Impact

Should HB1513 pass, it would significantly alter the state's tax framework by repealing Title 1 of the Tax Code. This repeal would prevent the imposition of ad valorem taxes at both state and local levels, thereby reshaping how local governments generate revenue. There are implications for local services that currently rely on this tax for funding, which could lead to broader discussions about how to finance essential services while maintaining accountability and effectiveness in tax collection.

Summary

House Bill 1513 aims to eliminate ad valorem taxes in Texas and establishes a joint interim committee to study alternative methods of taxation that could replace the local tax revenue lost by this elimination. The bill seeks to gather insights from both the House and Senate, with appointed members tasked to find potential substitutes ensuring local municipalities remain funded while adhering to this new tax policy. A final report documenting the committee's findings and suggestions is expected by November 1, 2024.

Sentiment

The sentiment surrounding HB1513 is likely to be mixed. Proponents may view the measure as a progressive step towards tax reform, alleviating financial pressure on property owners by eliminating a significant form of taxation. However, opponents could argue that this move threatens local control over revenues, possibly destabilizing funding for local services and governance. The outcome of this bill hinges on the ability of the interim committee to propose viable alternatives that satisfy both state requirements and local needs.

Contention

The most notable points of contention revolve around the feasibility of eliminating ad valorem taxes without destabilizing local government budgets. Stakeholders are expected to voice concerns regarding the potential revenue void that could arise from this legislation, as well as the challenge of implementing new taxes that may provide equivalent funding. The discussion will likely highlight the balance between reducing the tax burden on citizens and ensuring that local governments can still function effectively amid changes to their funding mechanisms.

Texas Constitutional Statutes Affected

Tax Code

  • Chapter 1. General Provisions
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX HB34

Relating to the elimination of ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

TX HB165

Relating to the elimination of ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

TX HB56

Relating to the elimination of ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

TX HB64

Relating to the elimination of ad valorem taxes and the creation of a joint interim committee on the elimination of those taxes.

TX HB181

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

TX HB3455

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

TX HB16

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

TX HB13

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

TX HB698

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

TX HB45

Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.

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