Texas House Bill HB2879

Texas 2009 - 81st Regular

Caption

Relating to the imposition of the sales and use tax by certain crime control and prevention districts and fire control, prevention, and emergency medical services districts.

Impact

If enacted, HB2879 will lead to a significant change in how certain districts can generate revenue from residential utilities. By enabling crime control and fire service districts to collect taxes on residential gas and electricity usage, the bill supports these districts in enhancing their financial resources. This could lead to improved funding for essential services like emergency medical response and public safety initiatives, ultimately benefiting local communities.

Summary

House Bill 2879 proposes to modify the imposition of sales and use tax by certain districts dedicated to crime control and prevention as well as fire control, prevention, and emergency medical services. This bill specifically allows these districts to impose taxes on the residential use of gas and electricity, thereby expanding the fiscal capabilities of these services. The bill provides the board of directors of the districts the authority to adopt resolutions to impose or exempt these taxes, creating flexibility in local tax policy.

Contention

However, the introduction of such a tax raises concerns among residents who may be affected by increased utility taxes. Critics may argue that imposing additional taxes could create a financial burden on households, particularly those with lower incomes. The debate may center around the balance between ensuring adequate funding for vital services and maintaining affordable living costs for residents.