Texas House Bill HB4071

Texas 2017 - 85th Regular

Caption

Relating to an exemption from the motor vehicle sales and use tax for certain military servicemembers serving on active duty.

Impact

If enacted, HB 4071 would amend the Texas Tax Code, specifically adding a new section that defines the eligibility criteria for the tax exemption. Eligible servicemembers would need to apply to the Texas comptroller for a certificate; this process is intended to create an official record of exemptions granted. This legislation would not only enhance tax relief for military families but also aim to encourage vehicle purchases among these populations, potentially stimulating local economies.

Summary

House Bill 4071 seeks to provide a sales and use tax exemption specifically for active duty military servicemembers who are residents of Texas and are deployed outside of the United States. This bill aims to alleviate some of the financial burdens faced by military personnel by allowing them to purchase motor vehicles without incurring state sales and use taxes. The exemption is limited to the member's own private vehicle use, ensuring that the provision is targeted and specific.

Contention

While the bill appears to garner broad support due to its focus on providing benefits to military families, it may also raise discussions about fiscal implications for state tax revenues. Critics might argue that although beneficial, such tax exemptions could lead to a revenue shortfall that could affect funding for other state services. Nonetheless, the intent behind HB 4071 is to recognize and support the sacrifices made by servicemembers in active duty.