Texas Senate Bill SB190

Texas 2009 - 81st Regular

• Filed: 11/10/08

Caption

Relating to a sales and use tax rebate for certain low-income families.

Impact

This legislation would amend Chapter 151 of the Texas Tax Code, establishing the terms under which eligible individuals can apply for rebates. The rebate is not considered a refund of erroneously paid taxes, which reflects an intent to create a new avenue of financial assistance rather than complicating existing tax structures. Furthermore, the ability to apply electronically and through multiple avenues, as stipulated in the bill, emphasizes accessibility for low-income families who are often underserved in tax matters.

Summary

SB190 proposes a sales and use tax rebate specifically designed for low-income families in Texas. The bill mandates that residents who have received the federal earned income tax credit in the previous year are eligible for a rebate amounting to 10% of their federal credit. This initiative aims to provide financial relief and assist those who struggle with essential costs of living, particularly in light of the economic pressures affecting low-income households.

Contention

While the intent behind SB190 is to support low-income families, there may be concerns surrounding the funding and administration of the program. Critics could argue that without adequate oversight or guaranteed funding sources, the rebate program might not reach all eligible families effectively. Additionally, stakeholders might voice concerns over whether establishing a rebate program could lead to long-term fiscal implications for the state's budget, particularly if the expected number of applicants exceeds projections.