Relating to authorizing the designation of an area adjacent to a state highway project as a transportation finance zone, and authorizing the revenue from the state sales and use taxes imposed in the zone to be deposited in a revolving fund and used to repay financial assistance provided from the fund for highway projects.
Impact
This bill has significant implications for state laws governing tax allocation and infrastructure funding. By permitting the allocation of tax revenues specifically in these zones, SB505 aims to facilitate the financing of highway projects and promote economic growth through improved transportation systems. Furthermore, the establishment of these zones requires legislative review and approval, ensuring accountability and oversight in utilizing public funds. The bill could alter how state and local governments view and manage transportation funding, potentially leading to more strategic investment areas.
Summary
SB505 introduces the concept of transportation finance zones adjacent to state highway projects in Texas. The bill allows areas within two miles of these projects to be designated as transportation finance zones, enabling local tax revenues to be collected and redirected for funding obligations tied to the highway projects. The primary goal is to establish a mechanism for utilizing sales and use tax revenues to support state infrastructure projects, specifically related to transportation, enhancing financial resources available for such developments.
Contention
Notable points of contention surrounding SB505 may arise over the fiscal impact and the management of designated zones. Critics may argue that focusing tax revenues in specific areas could detract from other regions that also require infrastructure investment. There could be concerns regarding the effectiveness of such zones in delivering tangible improvements to transportation networks. Furthermore, while proponents highlight the benefits of increased funding and strategic development, opponents might express fears of undue influence or favoritism in designating certain zones over others, questioning the transparency of the legislative approval process.
Enabling for
Proposing a constitutional amendment authorizing the legislature to permit the Texas Transportation Commission, subject to legislative review and approval, to designate the area adjacent to a state highway project as a transportation finance zone and dedicating the proceeds of the state sales and use taxes imposed in a transportation finance zone to the Texas Mobility Fund for certain purposes.
Proposing a constitutional amendment creating the state school safety fund to provide ongoing financial support for projects that ensure the safety of public schools in this state and providing for the transfer of certain general revenues to that fund, the economic stabilization fund, and the state highway fund.
Relating to the funding of projects by the Public Utility Commission of Texas to promote the reliability and resiliency of the power grid in this state; authorizing the issuance of revenue bonds.
Proposing a constitutional amendment creating the utilities reliability fund and the utilities reliability revenue fund to provide financial support for projects that enhance the reliability and resiliency of the power grid in this state.
Proposing a constitutional amendment creating the utilities reliability fund and the utilities reliability revenue fund to provide financial support for projects that enhance the reliability and resiliency of the power grid in this state.
Proposing a constitutional amendment providing for the creation of and use of money in the Grow Texas fund and allocating certain general revenues to that fund, the economic stabilization fund, and the state highway fund.
Relating to the allocation of certain constitutional transfers of money to the economic stabilization fund, the state highway fund, and the Grow Texas fund and to the permissible uses of money deposited to the Grow Texas fund.
Relating to the creation of and the powers of a comprehensive multimodal urban transportation authority, including the power to impose taxes, issue bonds, and exercise limited eminent domain authority.