Texas House Bill HB3640

Texas 2011 - 82nd Regular

• Out of House Committee: 4/26/11
• Introduced: 3/11/11

Caption

Relating to the remittance and allocation of certain taxes and fees.

Impact

The provisions in HB 3640 suggest a structured approach to tax revenue management, enabling state authorities to collect taxes more predictably. The bill requires that tax revenues be deposited directly into the general revenue fund, streamlining financial operations. This could lead to more efficient government operations, potentially improving the state's financial health as it allows for better forecasting of revenue inflows. However, the bill's particular impact will largely depend on compliance from tax entities and their capacity to adjust to these prepayment requirements.

Summary

House Bill 3640 focuses on the remittance and allocation of certain taxes and fees as related to Texas's Tax and Alcoholic Beverage Codes. The bill mandates that permittees must remit a tax prepayment that equals 25 percent of the amount due for the month of August, alongside their regular tax reports. This prepayment structure is designed to enhance cash flow to the state and manage tax revenues more effectively. The changes specifically impact how taxes are reported and paid by entities involved in the sale of alcoholic beverages and potentially other taxable items.

Contention

One notable contention surrounding HB 3640 relates to its implications for local businesses and license holders. Critics might argue that the requirement for prepaying taxes can create a financial burden and complicate cash flow for smaller entities, which could be disproportionately impacted compared to larger distributors. There may also be concerns about the expiration date of certain provisions and how that affects ongoing compliance and obligations under the tax code. This raises questions about the long-term viability of such financial requirements and their effects on local economies.