By: Bonnen of Brazoria, Martinez Fischer, H.B. No. 31
      Parker, Krause, Oliveira, et al.
  relating to decreasing the state sales and use tax rate.
         SECTION 1.  Section 151.051(b), Tax Code, is amended to read
  as follows:
         (b)  The sales tax rate is the lower of 5.95 [6-1/4] percent
  of the sales price of the taxable item sold or the rate adopted
  under Section 151.0511.
         SECTION 2.  Subchapter C, Chapter 151, Tax Code, is amended
  by adding Section 151.0511 to read as follows:
         Sec. 151.0511.  COMPTROLLER TAX RATE ADJUSTMENT. (a) On the
  date the comptroller makes the transfer of any unencumbered
  positive balance of general revenues from a preceding biennium to
  the economic stabilization fund as described by Section 49-g(b),
  Article III, Texas Constitution, the comptroller shall:
               (1)  identify an amount of money equal to 25 percent of
  those unencumbered general revenues that are not transferred under
  that subsection;
               (2)  estimate the amount of revenue attributable to the
  taxes imposed under Sections 151.051 and 151.101 that would be
  received by the comptroller during the current state fiscal
  biennium if the taxes were imposed at the rate in effect on the date
  the estimate is made; and
               (3)  subtract the amount of money identified under
  Subdivision (1) from the amount of revenue estimated under
  Subdivision (2).
         (b)  If the amount of money determined under Subsection
  (a)(3) is greater than zero, the comptroller shall determine the
  rate for purposes of Sections 151.051 and 151.101 that, if applied
  beginning January 1 of the current state fiscal biennium, is
  estimated to generate the amount of money determined by the
  comptroller under Subsection (a)(3) for that biennium.
         (c)  Not later than December 15 of each odd-numbered year,
  the comptroller shall:
               (1)  adopt the adjusted tax rate determined under
  Subsection (b), rounded to the nearest thousandth;
               (2)  publish notice of the adjusted tax rate in the
  Texas Register; and
               (3)  provide any other notice relating to the adjusted
  tax rate that the comptroller considers appropriate.
         (d)  The adjusted tax rate adopted by the comptroller under
  this section is effective on January 1 of the even-numbered year
  following the date the rate is adopted.
         (e)  In a state fiscal year in which the amount of money
  determined under Subsection (a)(3) is zero or less, the comptroller
  shall adopt an adjusted tax rate of zero percent.
         (f)  An action taken by the comptroller under this section is
  final and may not be appealed.
         (g)  The comptroller shall adopt rules to implement this
         SECTION 3.  The comptroller of public accounts shall study
  and report to the legislature on the impact of this Act on the rate
  of the state sales and use tax and what further reductions in the
  rate of the state sales and use tax may be made following a review of
  existing exemptions from the state sales and use tax. The
  comptroller shall provide the report to the legislature not later
  than December 31, 2016.
         SECTION 4.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act.  That liability continues in effect as if this Act 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.
         SECTION 5.  This Act takes effect January 1, 2016.