Texas Senate Bill SB1711

Texas 2021 - 87th Regular

Caption

Relating to state and local taxes and fees; imposing a tax; imposing fees.

Impact

Additionally, the bill establishes a specific tax on e-cigarette vapor products, imposing a fee of ten cents per milliliter sold. This provision aims to regulate the sales of these products while generating revenue for the state. The revenue from this new tax is directed to the general revenue fund, ensuring that these funds can be allocated to various state programs. The introduction of such a tax indicates a broader strategy to manage health-related expenses associated with smoking alternatives while simultaneously generating state revenue.

Summary

SB1711, also known as the bill relating to state and local taxes and fees, introduces various amendments to the Texas Tax Code with a primary focus on property taxes and the imposition of new fees and taxes. Notably, the bill seeks to decrease property tax liabilities through adjustments to the state compression percentage and exemptions on school district taxes for certain residential properties. Specifically, it establishes a new exemption of 150 percent of the median appraised value of single-family homes, which would significantly reduce the tax burden for homeowners in Texas.

Contention

Though the bill builds on existing tax frameworks to potentially simplify tax liabilities and generate revenue for essential state services, it has met with some controversy. Critics argue that introducing additional taxes, particularly on e-cigarettes, could disproportionately affect lower-income communities and may not address broader public health issues related to vaping. Meanwhile, supporters contend that these measures are necessary to improve funding for education and public services, highlighting the balance between fiscal responsibility and community health priorities.