Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.
Impact
The potential impact of HB2199 could result in significant financial benefits for service providers involved in telecommunications and media services within Texas. By increasing the refund limit, the bill aims to alleviate the tax burden on these businesses, promoting growth and investment in the technology sector. Moreover, enhancing the financial conditions for cable and internet service providers might encourage more competitive pricing and improved service delivery for consumers across the state.
Summary
House Bill 2199 pertains to the adjustment of sales and use tax refunds applicable to tangible personal property utilized in providing cable television service, internet access service, or telecommunications services. The bill seeks to amend the Tax Code, specifically Section 151.3186(d), by increasing the cap on the total amount of tax refunds for eligible providers and subsidiaries. This change proposes raising the threshold from $50 million to $150 million for the total amount of tax eligible for refunds in any given year. If the overall tax paid exceeds this amount, claimants will receive a pro-rata share of this specified refund limit.
Sentiment
Discussions surrounding HB2199 are expected to elicit mixed sentiments. Proponents, particularly from the telecommunications industry, argue that such tax relief is essential for sustaining operations and fostering growth within the sector. They emphasize that these adjustments would stimulate job creation and bolster technological advancements. Conversely, opponents may raise concerns regarding the implications of tax incentives on state revenue and the fairness of tax concessions for specific industries at the expense of broader taxpayer interests.
Contention
Notable points of contention regarding HB2199 may stem from debates over fiscal responsibility and equitable taxation practices. Some legislators could argue that while it seeks to benefit a specific sector, the overall impact on state revenue must be carefully evaluated. As discussions progresses, there will likely be scrutiny over budgetary implications and whether such financial adjustments align with broader economic goals, particularly in the context of prioritizing funds for public services versus tax refunds for private entities.
Identical
Relating to the amount of a sales and use tax refund for tangible personal property used to provide cable television service, Internet access service, or telecommunications services.
Relating to the amount of the refund to which certain persons are entitled of sales and use taxes imposed on tangible personal property used to provide cable television services, Internet access service, or telecommunications service.
Relating to the amount of the refund to which certain persons are entitled of sales and use taxes imposed on tangible personal property used to provide cable television services, Internet access service, or telecommunications service.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.