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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolition of ad valorem taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The legislature finds that: |
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(1) the imposition of ad valorem taxes is an |
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inherently inequitable means to generate revenue necessary to fund |
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the provision of essential services to residents of this state; |
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(2) ad valorem taxes may increase annually without |
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regard to the property owner's ability to pay; |
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(3) ad valorem taxes are perpetual and detrimental to |
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private property rights as secured by the Texas Constitution; |
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(4) the use of ad valorem taxes as a means to finance |
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the maintenance of public free schools has led directly to three |
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decades of school finance litigation in which the Texas Supreme |
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Court has referred to the system as "Byzantine" and has urged the |
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legislature to "choose a new path" of revenue for public free |
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schools; |
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(5) the use of ad valorem taxes by local governmental |
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entities as a means to generate revenue to fund the provision of |
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essential services places a disproportionate burden on those |
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residents that own property to pay for services that are enjoyed by |
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all residents; and |
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(6) the legislature has an obligation to ensure that |
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local governmental entities provide essential services in a manner |
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that is fair and fiscally responsible, and should encourage the use |
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of a more equitable source of revenue, such as the sales tax, to |
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fund the provision of those services. |
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(b) It is the intent of the legislature to abolish ad |
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valorem taxes and to create a more equitable means of funding the |
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provision of essential services to residents of this state by local |
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governmental entities and of meeting the state's constitutional |
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duty to make suitable provision for the support and maintenance of |
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an efficient system of public free schools. |
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SECTION 2. (a) Title 1, Tax Code, is repealed. |
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(b) Notwithstanding any other law, this state or a political |
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subdivision of this state may not impose an ad valorem tax. To the |
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extent of a conflict, this section controls over a conflicting |
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provision in a general or special law. |
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(c) The change in law made by this section does not affect |
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tax liability accruing before the effective date of this section. |
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That liability continues in effect as if this section had not been |
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enacted, and the former law is continued in effect for the |
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collection of taxes due and for civil and criminal enforcement of |
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the liability for those taxes. |
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(d) This section takes effect January 1, 2022. |
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SECTION 3. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2017. |