Bill Text: TX HB34 | 2023 | 88th Legislature 1st Special Session | Introduced

Texas House Bill 34 (Prior Session Legislation)

Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2023-05-30 - Filed [HB34 Detail]

Download: Texas-2023-HB34-Introduced.html



	By: Vasut	H.B. No. 34



	A BILL TO BE ENTITLED
	AN ACT
	relating to the elimination of ad valorem taxes and the creation of
	a joint interim committee on the elimination of those taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. (a) Title 1, Tax Code, is repealed.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 the effective date of this section.
	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.
	(d) This section takes effect January 1, 2033.
	SECTION 2. (a) In this section, "committee" means the joint
	interim committee on the elimination of ad valorem taxes.
	(b) The joint interim committee on the elimination 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 November 1, 2023.
	(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 of
	alternative methods of taxation to replace local tax revenue that
	will be lost when ad valorem taxes are eliminated.
	(h) For each alternative method of taxation considered by
	the committee, the committee shall:
	(1) consider whether political subdivisions that
	currently impose ad valorem taxes would have the authority to
	impose the proposed alternative tax;
	(2) determine the average tax rate for the proposed
	alternative tax imposed by 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 elimination of ad
	valorem taxes;
	(3) determine, if appropriate, the effect that
	broadening the application of the proposed alternative tax at the
	local level would have on the tax rates identified under
	Subdivision (2) of this subsection;
	(4) identify whether tax revenue generated by the
	proposed alternative tax would require redistribution to offset
	disparities in available local tax revenue as a result of the
	elimination 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 elimination 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 November 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 3. Except as otherwise provided by this Act, this
	Act takes effect September 1, 2023.