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A BILL TO BE ENTITLED
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AN ACT
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Relating to increasing the state sales and use tax rate, and |
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requiring a reduction in school maintenance and operation ad |
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valorem taxes; making and appropriation; increasing the rate of a |
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tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 42.2516(a), Education Code, is amended |
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to read as follows: |
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(a) In this title, "state compression percentage" means the |
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percentage of a school district's adopted maintenance and |
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operations tax rate for the 2005 tax year that serves as the basis |
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for state funding. The Commissioner shall determine the state |
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compression percentage each year based on the percentage by which |
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districts' maintenance of operations tax rates can be lowered with |
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revenue collected under Section 151.803, Tax Code. [If the state
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compression percentage is not established by appropriation for a
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school year, the commissioner shall determine the state compression
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percentage for each school year based on the percentage by which a
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district is able to reduce the district's maintenance and
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operations tax rate for that year, as compared to the district's
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adopted maintenance and operations tax rate for the 2005 tax year,
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as a result of state funds appropriated for that year from the
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property tax relief fund established under Section 403.109,
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Government Code, or from another funding source available for
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school district property tax relief.] |
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SECTION 2. Section 151.051(b), Tax Code, is amended to read |
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as follows: |
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(b) The sales tax rate is [6-1/4] percent of the sales |
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price of the taxable item sold. |
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SECTION 3. Subchapter M, Chapter 151, Tax Code, is amended |
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by adding Section 151.803 to read as follows: |
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Sec. 151.803. ALLOCATION OF CERTAIN REVENUE TO SCHOOL |
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DISTRICT PROPERTY TAX REDUCTION. Notwithstanding Section 151.801, |
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the comptroller shall deposit an amount of revenue equal to the |
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proceeds derived from the collection of taxes imposed by this |
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chapter attributable to the portion of the tax rate in excess of |
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6.25 percent of the sales price of the taxable item sold to the |
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credit of an account in the foundation school fund. Money credited |
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to the account may be appropriated only to the Texas Education |
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Agency for use by the commissioner of education to provide property |
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tax relief by compressing property tax rates. |
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SECTION 4. For the state fiscal year beginning September 1, |
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2020, all money credited to the account created under Section |
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151.803, Tax Code, as added by this Act, preceding or during that |
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year is appropriated from that account to the Texas Education |
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Agency to be used by the commissioner of education to increase the |
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basic allotment, equalized wealth level, and guaranteed level under |
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Chapters 41 and 42, Education Code, and require the compression of |
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property tax rates. |
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SECTION 5. The change in law made by this Act does not |
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affect taxes imposed before the effective date of this Act, and the |
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law in effect before that date is continued in effect for purposes |
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of the liability for and collection of those taxes. |
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SECTION 6. This Act takes effect January 1, 2020, but only |
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if the constitutional amendment proposed by _.J.R. No. _, 86th |
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Legislature, Regular Session, 2019, is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |