Texas Senate Bill SB709

Texas 2025 - 89th Regular

• Filed: 1/6/25

Caption

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

Impact

The implementation of SB709 would have significant implications for both students and local businesses. By exempting textbooks from sales taxes during specific periods, the bill can alleviate some financial burdens on students, enabling them to acquire essential academic materials without the additional cost of sales tax. This proposal not only supports educational attainment but also aims to enhance student retention and success in higher education through reduced costs.

Summary

Senate Bill 709 aims to provide a temporary sales and use tax exemption for textbooks purchased by university and college students in Texas. The bill stipulates that eligible textbooks must be purchased within designated exemption periods defined by the state comptroller, which will occur twice a year: once in January and once in August. This structured approach seeks to align the exemption with the academic calendars of higher education institutions to maximize the benefit to students as they prepare for classes each semester.

Contention

There are potential points of contention regarding the bill, primarily around the fiscal impact it may have on state revenues. Critics may argue that tax exemptions, even for a limited time, could cumulatively lead to substantial revenue loss for state education support programs, which are already faced with funding challenges. Another area of discussion could center around the criteria for what constitutes an eligible textbook and whether digital materials will be included under this exemption, ensuring equitable access for all students regardless of their choice of learning materials.

Texas Constitutional Statutes Affected

Tax Code

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