By: Guillen H.B. No. 5285
A BILL TO BE ENTITLED
AN ACT
relating to the banning of school district ad valorem taxes for
certain residential properties and an increase in the rates of
certain state taxes to cover the increased cost to the state of
providing public education; increasing the rates of taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sec. 45.002, Education Code, is amended to read
as follows.
Sec. 45.002. (a) MAINTENANCE TAXES. The governing board
of an independent school district, including the city council or
commission that has jurisdiction over a municipally controlled
independent school district, the governing board of a rural high
school district, and the commissioners court of a county, on behalf
of each common school district under its jurisdiction, may levy,
assess, and collect annual ad valorem taxes for the further
maintenance of public schools in the district, subject to Section
45.003.
(b) This section may not be applied to property defined by
Sec. 11.13(j)(1), Tax Code.
SECTION 2. Section 151.051(b), Tax Code, is amended to read
as follows:
(b) The sales tax rate is 7.45 [6-1/4] percent of the sales
price of the taxable item sold.
SECTION 3. Section 151.801, Tax Code, is amended by
amending Subsection (a) and adding Subsection (b-1) to read as
follows:
(a) Except for [the] amounts otherwise allocated under this
section [Subsections (b), (c), (c-2), (c-3), and (f)], all proceeds
from the collection of the taxes imposed by this chapter shall be
deposited to the credit of the general revenue fund.
(b-1) Notwithstanding any other provision of this section,
an amount of revenue under this chapter equal to the proceeds,
other than the proceeds allocated under Subsection (b) or (c),
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 shall be
deposited to the credit of the foundation school fund.
SECTION 4. Section 152.021(b), Tax Code, is amended to read
as follows:
(b) The tax rate is 9.45 [6-1/4] percent of the total
consideration.
SECTION 5. Section 152.022(b), Tax Code, is amended to read
as follows:
(b) The tax rate is 9.45 [6-1/4] percent of the total
consideration.
SECTION 6. Section 152.023(b-1), Tax Code, is amended to
read as follows:
(b-1) The tax on a motor vehicle eligible to be issued
exhibition vehicle specialty license plates under Section 504.502,
Transportation Code, is equal to the lesser of $90 or 9.45 [6.25]
percent of the total consideration.
SECTION 7. Section 152.026(b), Tax Code, is amended to read
as follows:
(b) The tax rate is 10 percent of the gross rental receipts
from the rental of a rented motor vehicle for 30 days or less and
9.45 [6-1/4] percent of the gross rental receipts from the rental of
a rented motor vehicle for longer than 30 days.
SECTION 8. Section 152.028(b), Tax Code, is amended to read
as follows:
(b) The tax rate is 9.45 [6-1/4] percent of the total
consideration.
SECTION 9. Section 152.122, Tax Code, is amended to read as
follows:
Sec. 152.122. ALLOCATION OF TAX. (a) The comptroller shall
deposit the funds received under Section 152.121 [of this code as
follows:
[(1) 1/4 to the credit of the foundation school fund; and
[(2) the remaining funds] to the credit of the general
revenue fund.
(b) Notwithstanding Subsection (a), the comptroller shall
deposit to the credit of the foundation school fund an amount equal
to the amount of money that is:
(1) received by the comptroller under Sections 152.043,
152.044, 152.045, 152.046, 152.047, and 152.121;
(2) derived from the taxes imposed under Sections 152.021,
152.022, 152.023, 152.026, and 152.028; and
(3) attributable to an increase in the rate of a tax
described by Subdivision (2) effective January 1, 2024.
SECTION 10. The changes in law made by this Act to Sections
11.13 and 11.26, Tax Code, apply only to an ad valorem tax year that
begins on or after January 1, 2024.
SECTION 11. In addition to the substantive changes made by
this Act, this Act conforms Section 152.122, Tax Code, to the method
of allocating motor vehicle sales and use taxes in effect before the
effective date of this Act. Section 11.04, Chapter 4 (S.B. 3), Acts
of the 72nd Legislature, 1st Called Session, 1991, enacted former
Section 403.094(h), Government Code, which abolished certain state
fund dedications and resulted in the abolition of the allocation to
the foundation school fund effective August 31, 1995.
SECTION 12. The changes in law made by this Act do 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 13. This Act takes effect January 1, 2024.