Relating to a sales and use tax exemption for United States flags and Texas state flags.
Impact
If enacted, this bill would have a direct impact on state revenue, as it removes sales tax income from flag purchases. However, the bill ensures that tax liabilities incurred before the effective date of this act will remain enforceable under previous law. The exemption is seen as a means to honor and promote patriotism by encouraging the display of national and state symbols without the added cost of taxation.
Summary
House Bill 2041 aims to amend the Texas Tax Code to provide a sales and use tax exemption specifically for the United States flag and the Texas state flag. The bill proposes to add a new section to Subchapter H of Chapter 151 of the Tax Code, which governs various aspects of sales and use tax in Texas. With this amendment, purchases of these flags would not incur any sales or use tax, allowing individuals and organizations to acquire them without the financial burden of these taxes.
Contention
While the bill promotes the display of flags as a form of national pride, there may be differing opinions on the implications of such tax exemptions. Supporters might argue that removing the tax burden aligns with patriotic motivations, encouraging Texans to display their flags more prominently. Conversely, opponents might challenge the financial implications of the tax exemption on state budgets, particularly if it sets a precedent for similar requests for exemption from sales tax on other goods or services.
Last_action
The most recent action recorded for HB2041 was a referral to the Ways and Means Committee on March 13, 2017. As of that date, the bill is still in committee and has not yet moved to further legislative action.