Texas Senate Bill SB743

Texas 2015 - 84th Regular

Caption

Relating to the allocation of certain surplus state revenue for periodic reductions in the state sales tax rate.

Impact

The bill amends existing laws related to the management and declaration of sales tax rates. Specifically, it permits the comptroller to assess the adequacy of the Sales Tax Reduction Fund and determine if a reduction in the sales tax rate is feasible. This process involves evaluating the fund's balance to ensure that it can cover the expected loss in revenue to the general fund while providing a substantial reduction in the sales tax rate, thereby benefiting consumers across the state when the balance allows for such actions.

Summary

Senate Bill 743 addresses the allocation of surplus state revenue with the goal of periodically reducing the state sales tax rate. The bill establishes a special fund in the state treasury, known as the Sales Tax Reduction Fund, which would be administered by the comptroller. This fund will receive allocations directed by the legislature, allowing for a systematic approach to manage surplus funds with the intent of easing the tax burden on Texas residents through temporary sales tax reductions.

Contention

Notable points of contention around SB743 may revolve around its potential impact on state revenue. Critics of taxation policies often express concern that reductions in sales tax could lead to deficits in funding essential state services, which rely heavily on sales tax revenue. On the other hand, supporters argue that temporary tax reductions can stimulate economic activity and provide much-needed relief to taxpayers in Texas, particularly during periods of economic growth when surpluses are anticipated. Balancing these perspectives will be crucial as discussions about the bill progress.