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  (a) Title 1, Tax Code, is repealed.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.