Relating to the abolition of ad valorem taxes and the creation of a joint interim committee on the abolition of those taxes.
Impact
Should this bill be enacted, it will significantly alter the tax landscape of Texas. The repeal of ad valorem taxes, which are taxes based on property values, will require local governments to explore alternative means of generating revenue. This change is expected to prompt debates regarding the adequacy and fairness of sales taxes as a substitute for ad valorem taxes, which could impact various public services funded by the latter. The bill acknowledges that while the abolition is set to take effect on January 1, 2026, it outlines a phased approach where tax liabilities from ad valorem taxing continue until January 2020, allowing for a gradual transition.
Summary
House Bill 698 proposes the abolition of ad valorem taxes in Texas and establishes a joint interim committee tasked with exploring how to replace the lost revenue with local sales and use taxes. The bill outlines the formation of a committee comprising ten legislative members—five from the House and five from the Senate—who are to be appointed by their respective leaders. This committee is mandated to conduct a comprehensive study on the implications of abolishing ad valorem taxes and how to implement the transition to alternative tax revenue sources effectively.
Contention
The most notable point of contention surrounding HB 698 is the potential impact of abolishing ad valorem taxes on local governments' ability to finance essential services. Supporters argue that replacing property taxes with sales and use taxes could simplify tax administration and enhance fairness, as sales taxes are levied based on consumption rather than property ownership. However, critics may voice concerns about the equity of sales taxes, particularly for lower-income residents, who could be disproportionately affected by increases in sales tax rates as local governments adjust to recover the revenue losses from the abolished ad valorem taxes.
Relating to 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.
Relating to 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.
Campaign finance: contributions and expenditures; provision related to officeholders raising funds when facing a recall; modify, and require candidate to establish a separate account used for recall purposes. Amends secs. 3, 11, 12, 21, 24 & 52 of 1976 PA 388 (MCL 169.203 et seq.) & adds sec. 21b.
Campaign finance: contributions and expenditures; funds donated to a candidate for recall efforts; require candidate to establish a separate account used for recall purposes. Amends secs. 3, 11, 12, 21, 24 & 52 of 1976 PA 388 (MCL 169.203 et seq.) & adds sec. 21b.
A concurrent resolution recognizing wild rice as sacred and central to the culture and health of Indigenous Peoples in Minnesota and critical to the health and identity of all Minnesota citizens and ecosystems and establishing a commitment to passing legislation to protect wild rice and the freshwater resources upon which it depends.