Texas House Bill HB164

Texas 2023 - 88th Regular

• Filed: 11/14/22

Caption

Relating to exempting textbooks purchased, used, or consumed by university and college students from sales and use taxes for limited periods.

Impact

If enacted, HB 164 would result in a significant change to state tax law regarding education materials. By exempting textbooks from sales taxes for specified periods, students could save notable amounts during their course of study. The bill's effectiveness hinges on the Texas Comptroller's determination of optimum periods for exemption, which would require collaboration with educational institutions to align the timing with peak textbook purchasing seasons. This could potentially encourage more students to invest in necessary educational resources.

Summary

House Bill 164 seeks to provide sales and use tax exemptions specifically for textbooks purchased, used, or consumed by both university and college students within Texas. The legislation is designed to alleviate financial burdens on students by temporarily suspending sales taxes during designated periods that align with academic calendars. The bill's proponents advocate this exemption as a way to make education more affordable and accessible for students, particularly those attending institutions of higher education in the state.

Sentiment

The sentiment surrounding HB 164 appears to be largely positive, particularly among students, educators, and advocates for higher education affordability. Supporters argue that the exemption is a step towards reducing the financial strain on students, possibly increasing enrollment rates and academic success. There have been voices of support from various stakeholders who believe that the reduction in costs associated with textbooks could lead to broader implications for educational attainment and engagement.

Contention

While the bill enjoys general support, it may face challenges concerning fiscal implications for state budgets due to reduced tax revenues during the exemption periods. Some lawmakers might express concerns about the long-term sustainability of such exemptions, needing to balance the benefits for students with the financial needs of the state. The proposed structure of designated exemption periods also raises questions about the effectiveness of coordination between the state and educational institutions in ensuring that students are aware of these tax relief opportunities.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 151. Limited Sales, Excise, And Use Tax
  • Section: New Section