Texas House Bill HB847

Texas 2009 - 81st Regular

Caption

Relating to the maximum rate of certain local sales and use taxes.

Impact

The passage of HB 847 would significantly alter the financial landscape for local governments across Texas. By raising the maximum allowable sales and use tax rate, municipalities and counties would be better positioned to fund essential services and infrastructure projects that may have been previously limited by the lower tax cap. This could potentially lead to improved local government services, as additional revenue could be allocated to areas such as public safety, education, and public works.

Summary

House Bill 847 seeks to amend the Local Government Code and the Tax Code in Texas, specifically focusing on the maximum allowable rate of local sales and use taxes. The bill proposes to increase the cap on the combined local tax rate that municipalities and counties can impose from two percent to three percent. This change is intended to allow local governments greater flexibility in generating revenue while still adhering to a controlled limit on the total tax burden that residents face.

Contention

However, the bill has faced some opposition from various stakeholders who express concerns about the potential for increased financial strain on residents. Critics argue that raising the tax cap may lead to higher local taxes, which could disproportionately affect low- and middle-income families. Additionally, there are fears that the increased revenue may not be managed effectively, leading to waste or misallocation of funds. The debate surrounding HB 847 highlights the delicate balance between providing necessary local funding and ensuring that tax burdens remain manageable for citizens.