Texas House Bill HB2663

Texas 2021 - 87th Regular

Caption

Relating to the rate of state sales and use taxes imposed on certain personal services and the use of a portion of the revenue from those taxes for sexual assault programs; increasing the rates of taxes.

Impact

The passing of HB 2663 would directly impact the taxation structure concerning personal services and redirect a segment of the tax revenue towards crucial sexual assault programs. By channeling revenue from the new tax rates into these programs, the bill aims to address public safety concerns related to sexual violence and enhance support for survivors. This legislative change will create a new funding source that could significantly affect the availability of resources for crisis interventions and educational initiatives on sexual assault.

Summary

House Bill 2663 proposes to amend the Texas Tax Code to increase the rate of sales and use taxes on specified personal services, including services classified under certain categories like massage parlors and escort services. Specifically, the bill sets a sales tax rate of 18.75% for these services. The intent behind this increase is to generate additional revenue, a portion of which is earmarked for funding sexual assault prevention and crisis services programs in Texas.

Contention

While proponents of the bill argue that the increased tax rate on personal services is a necessary step to ensure sustained funding for sexual assault programs, opponents may view it as an unfair burden on businesses providing these services. Concerns may also arise regarding the broader implications of steep tax rates on personal services, such as customer accessibility and potential impacts on economic activity within those industries. Moreover, debates could be centered on ensuring that the appropriation of tax revenue serves its intended purpose effectively.