TX
Texas House Bill HB5285

Texas 2023 - 88th Regular

Texas House Bill HB5285

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

Caption

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.

Impact

If passed, HB5285 would significantly alter the financing structure of public school education in Texas. The elimination of ad valorem taxes for designated residential properties would mean that schools may face a reduction in local funds, compelling the state to raise additional revenues through state taxes. This shift could potentially standardize the funding mechanism across various districts, ensuring that all students receive adequate education funding irrespective of their local property tax contributions, thus addressing disparities in school financing.

Summary

House Bill 5285 aims to address concerns regarding school district funding by banning ad valorem taxes for certain residential properties while proposing an increase in state taxes to offset the potential financial shortfall in public education funding. The bill focuses on promoting equitable funding for public schools by attempting to redistribute the financial burden from local to state levels. This measure would have implications for how school funding is organized, particularly in communities heavily reliant on property taxes for school revenue.

Sentiment

The sentiment surrounding HB5285 seems to be mixed, reflecting diverse views on educational finance reform. Proponents argue that this bill fosters a more equitable approach to school funding, enabling access to educational resources for all students without penalizing low-income areas. Conversely, critics are wary of the tax increases proposed to cover the gaps left by the removed local taxes, suggesting that this shift may place undue financial burdens on residents and businesses at the state level.

Contention

Notable points of contention include the potential long-term effects on local control of school funding and community responses to increased state taxation. Some fear that reliance on state funding may lead to a one-size-fits-all approach that may not consider local needs and preferences. In addition, there are apprehensions about whether state taxes can consistently meet the education fund needs over time, raising questions about sustainability and adequacy of funding moving forward.

Texas Constitutional Statutes Affected

Education Code

  • Chapter 45. School District Funds
    • Section: New Section

Tax Code

  • Chapter 151. Limited Sales, Excise, And Use Tax
    • Section: 051
    • Section: New Section
  • Chapter 152. Taxes On Sale, Rental, And Use Of Motor Vehicles
    • Section: 021
    • Section: 022
    • Section: 023
    • Section: 026
    • Section: 028
    • Section: 122

Companion Bills

No companion bills found.

Previously Filed As

TX HB38

Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.

TX HB399

Relating to taxes wholly or partly deposited to the credit of the state highway fund; increasing the rates of the gasoline and diesel fuel taxes and authorizing the increase or decrease of those rates in subsequent years.

TX HB3157

Relating to taxes and fees wholly or partly deposited to the credit of the state highway fund; increasing the rates of the gasoline and diesel fuel taxes, authorizing the increase or decrease of those rates in subsequent years, and increasing motor vehicle registration fees.

TX HB395

Relating to the rates of the state motor fuel taxes and to the use of additional revenue derived from those taxes; increasing the rates of certain taxes.

TX HB4621

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.

TX HB4648

Relating to the repeal of ad valorem taxes and certain state and local taxes, the enactment of a uniform state sales tax, and related school and local government finance reform; increasing the rate of a tax.

TX HB3427

Relating to an increase in the state sales and use tax rate for the purpose of reducing school district maintenance and operations ad valorem taxes; increasing the rate of a tax.

TX SB2441

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.

TX HB297

Relating to the public school finance system, the elimination of school district maintenance and operations ad valorem taxes, and the creation of a joint interim committee on the elimination of those taxes.

TX HB1077

Relating to public school finance, supporting public education funding through an increase in the state sales and use tax rate, and requiring a reduction in school district maintenance and operation ad valorem taxes; making an appropriation; increasing the rate of a tax.

Similar Bills

No similar bills found.