Bill Text: TX SB2441 | 2019-2020 | 86th Legislature | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred to Finance [SB2441 Detail]
Download: Texas-2019-SB2441-Introduced.html
By: Taylor | S.B. No. 2441 | |
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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. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 42.2516(a), Education Code, is amended | ||
to read as follows: | ||
(a) In this title, "state compression percentage" means the | ||
percentage of a school district's adopted maintenance and | ||
operations tax rate for the 2005 tax year that serves as the basis | ||
for state funding. The Commissioner shall determine the state | ||
compression percentage each year based on the percentage by which | ||
districts' maintenance of operations tax rates can be lowered with | ||
revenue collected under Section 151.803, Tax Code. [ |
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SECTION 2. Section 151.051(b), Tax Code, is amended to read | ||
as follows: | ||
(b) The sales tax rate is [ |
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price of the taxable item sold. | ||
SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended | ||
by adding Section 151.803 to read as follows: | ||
Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL | ||
DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801, | ||
the comptroller shall deposit an amount of revenue equal to the | ||
proceeds derived from the collection of taxes imposed by this | ||
chapter attributable to the portion of the tax rate in excess of | ||
6.25 percent of the sales price of the taxable item sold to the | ||
credit of an account in the foundation school fund. Money credited | ||
to the account may be appropriated only to the Texas Education | ||
Agency for use by the commissioner of education to provide property | ||
tax relief by compressing property tax rates. | ||
SECTION 4. For the state fiscal year beginning September 1, | ||
2020, all money credited to the account created under Section | ||
151.803, Tax Code, as added by this Act, preceding or during that | ||
year is appropriated from that account to the Texas Education | ||
Agency to be used by the commissioner of education to increase the | ||
basic allotment, equalized wealth level, and guaranteed level under | ||
Chapters 41 and 42, Education Code, and require the compression of | ||
property tax rates. | ||
SECTION 5. The change in law made by this Act does not | ||
affect taxes imposed before the effective date of this Act, and the | ||
law in effect before that date is continued in effect for purposes | ||
of the liability for and collection of those taxes. | ||
SECTION 6. This Act takes effect January 1, 2020, but only | ||
if the constitutional amendment proposed by _.J.R. No. _, 86th | ||
Legislature, Regular Session, 2019, is approved by the voters. If | ||
that amendment is not approved by the voters, this Act has no | ||
effect. |