Relating to certain reimbursements provided for the collection of sales and use taxes.
Impact
By introducing limitations on the deductible reimbursement, SB591 establishes a cap under which taxpayers can withhold up to $312.50 monthly, $937.50 quarterly, or $3,750 annually. This capping mechanism implies a restructuring of taxpayer obligations and may impact overall state revenue by limiting the deductions available to those collecting taxes on behalf of the state. Furthermore, the revenue impacted by this change will now be redirected to an account managed by the Texas Higher Education Coordinating Board, earmarked specifically for providing educational grants.
Summary
SB591 proposes amendments to the Texas Tax Code regarding reimbursements for the collection of sales and use taxes. Specifically, the bill adjusts the percentage that taxpayers may deduct from taxes due to cover their costs incurred in collecting these taxes. Currently, taxpayers can deduct half of one percent; SB591 seeks to change this to three-fourths of one percent. This change aims to alleviate the financial burden on taxpayers who are responsible for collecting these taxes and to incentivize proper tax reporting practices.
Contention
The bill is likely to be a point of contention as it directly affects fiscal policies involving sales tax collection. Proponents argue that this amendment simplifies tax collection for businesses and enables better funding for education through redirected funds. However, opponents may voice concerns regarding the implications of reduced reimbursements on small businesses that are accustomed to receiving a certain level of support for their tax collection responsibilities. The shift in funding to education grants may also provoke debate over budget priorities within the state.
Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.
Relating to the collection, remittance, and administration of certain taxes on motor vehicles rented through a marketplace rental provider; imposing a penalty.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.