Bill Text: TX HB181 | 2023 | 88th Legislature 3rd Special Session | Introduced


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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-10-19 - Filed [HB181 Detail]

Download: Texas-2023-HB181-Introduced.html
 
 
  By: Harrison H.B. No. 181
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the abolition of ad valorem taxes and the creation of a
  joint interim committee on the abolition of those taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  In this section, "committee" means the joint
  interim committee on the abolition of ad valorem taxes.
         (b)  The joint interim committee on the abolition of ad
  valorem taxes is composed of:
               (1)  five members of the house of representatives
  appointed by the speaker of the house of representatives; and
               (2)  five senators appointed by the lieutenant
  governor.
         (c)  The speaker of the house of representatives and the
  lieutenant governor shall make the appointments under Subsection
  (b) of this section not later than February 1, 2024.
         (d)  The speaker of the house of representatives and the
  lieutenant governor shall each designate a co-chair from among the
  committee members.
         (e)  The committee shall convene at the joint call of the
  co-chairs.
         (f)  The committee has all other powers and duties provided
  to a special or select committee by the rules of the senate and
  house of representatives, by Subchapter B, Chapter 301, Government
  Code, and by policies of the senate and house committees on
  administration.
         (g)  The committee shall conduct a comprehensive study to
  determine how to replace local tax revenue that will be lost when ad
  valorem taxes are abolished with local sales and use tax revenue.
         (h)  The committee shall:
               (1)  consider whether political subdivisions that
  currently impose ad valorem taxes would have the authority to
  impose sales and use taxes;
               (2)  determine the average sales and use tax rate for
  each type of political subdivision that would be necessary to
  generate the same amount of tax revenue as the amount of tax revenue
  lost as a result of the abolition of ad valorem taxes;
               (3)  determine, if appropriate, the effect that
  broadening the application of sales and use taxes at the local level
  would have on the tax rates identified under Subdivision (2) of this
  subsection;
               (4)  identify whether tax revenue generated by sales
  and use taxes would require redistribution to offset disparities in
  available local tax revenue as a result of the abolition of ad
  valorem taxes and, if so, evaluate the different mechanisms of
  redistribution available; and
               (5)  identify and examine any other issue that would
  need to be addressed to implement the abolition of ad valorem taxes.
         (i)  On request of the committee, a state agency or political
  subdivision shall provide information for and assistance in
  conducting the study under this section.
         (j)  Not later than December 1, 2024, the committee shall
  prepare and submit to the legislature a written report containing
  the results of the study and any recommendations for legislative or
  other action.
         (k)  The committee is abolished and this section expires
  January 1, 2025.
         SECTION 2.  (a)  Title 1, Tax Code, is repealed.
         (b)  Notwithstanding any other law, this state or a political
  subdivision of this state may not impose an ad valorem tax.  To the
  extent of a conflict, this section controls over a conflicting
  provision in a general or special law.
         (c)  The change in law made by this section does not affect
  tax liability accruing before January 1, 2029.  That liability
  continues in effect as if this section 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 3.  (a)  This Act takes effect as provided by
  Subsections (b) and (c) of this section, but only if the
  constitutional amendment proposed by the 88th Legislature, 3rd
  Called Session, 2023, to abolish ad valorem taxes is approved by the
  voters.  If that amendment is not approved by the voters, this Act
  has no effect.
         (b)  This section and Section 1 of this Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect on the 91st day after the
  last day of the legislative session.
         (c)  Section 2 of this Act takes effect January 1, 2029.
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