Bill Would Require A Study To Examine Elemination Of Property Taxes As A Mechanism For Funding Schools

A bill by State Rep. Lois Kolkhorst (R-Brenham) would require the State Comptroller to conduct a study related to replacing all state and school district property tax revenue with revenue from a transaction tax.

This bill, HB 508, is a dangerous bill because anti-tax Republicans could eventually use the study as ammunition to do away with property taxes in favor of more regressive taxes.

According to the bill, a “transaction tax” would be a tax on every transaction that occurs in the state and is electronically collected by financial institutions.

It is unclear from the bill exactly how Kolkhorst is defining a “transaction tax.” It could be code for a hefter sales tax, since a sales tax is a transaction tax of sorts. It could also mean a transaction tax on the transfer of titles to property from one person or entity to another. A tax on a transfer of securities from one person to another is also sometimes called a “transaction tax,” but it is unlikely this is what Kolkhorst means.