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 | |
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| 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. | ||
