By: Vasut H.B. No. 56
 
 
 
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  (a) Title 1, Tax Code, is repealed.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 March 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 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 February 7, 2024.