Texas Senate Bill SB505

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/1/09
• Voted on by Senate: 5/7/09
• Out of House Committee: 5/21/09

Caption

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.