The Plan For Ending Property Taxes
The first step is to complete the changes to the Limited Sales and Use Tax law in order to have it apply to all transactions in the state of Texas.
Next is to write the legislation that will lay out this plan in formal terms for transitioning local entities who currently benefit from Property Taxes to operating on revenue from the no exemption sales tax.
Within three months of the passage of the legislation to update the Law pertaining to Sales and Use Taxes, an adjustment to the collection of property taxes will provide immediate relief, and will include the following exemptions from property taxes for the next property tax collection:
All home owner occupied properties occupied by seniors (those over 65 years of age).
All home owner occupied properties occupied by Disabled Veterans (60% or greater rating as with other law).
All home owner occupied properties occupied by individuals caring for disabled individuals.
All other properties will pay the property taxes for the year the legislation is passed as the last time property taxes are to be paid.
Within three months of the passage of the legislation, all business will be required to collect the full 8.25% sales tax on all transactions.
The three month period will permit all commerce platforms the opportunity to update their systems for their business customers who use their platforms for collecting payments and sales taxes.
By the end of this period, all businesses operating or having Nexus in the state of Texas will be obligated to collected 8.25% sales taxes on all transactions considered to be the sale of a product, service, ownership stake, or conversion of dollars to electronic or physical mediums of gambling, and similar transactions, include transactions between businesses.
This will effectively end all exemptions, exceptions, and resale certificates, making all sales taxable under the new law.
From the date of passage of the new legislation, cities will be permitted to retain all fund collected between the final year of property taxes and the beginning of the new monthly distribution of sales taxes collected to local governments.
By the end of the first year the new law is implemented, all businesses in Texas will be collecting sales taxes on all transactions in accordance with the new law and local governments operating on their allocation of those taxes.