Texas House Bill HB658

Texas 2011 - 82nd Regular

• Out of House Committee: 3/22/11
• Introduced: 1/13/11
• Refer: 2/21/11
• Report Pass: 3/7/11

Caption

Relating to the repeal of state sales tax and franchise tax refunds for certain ad valorem tax payers.

Impact

The impact of HB 658 on state laws would be significant as it proposes to modify the provisions under Chapter 111 of the Texas Tax Code. By repealing Section F, taxpayers who previously qualified for refunds based on their ad valorem tax contributions to school districts would lose that entitlement going forward. This could have a considerable financial effect on specific qualifying taxpayers, who rely on these refunds as a component of their tax relief strategies.

Summary

House Bill 658 focuses on the repeal of state sales tax and franchise tax refunds for certain ad valorem tax payers in Texas. This legislative proposal aims to streamline tax regulations concerning refunds that are linked to the payment of ad valorem taxes to school districts. The bill seeks to reform the current tax structure by removing the provisions that allow specific taxpayers to claim refunds linked to their ad valorem tax payments, aiming for a more simplified taxation system.

Contention

While proponents of the bill may argue that repealing these tax refunds simplifies the tax code and possibly helps to maintain state revenue, opponents could contend that it disproportionately affects those taxpayers who benefit from these refunds. The removal of such tax refunds raises questions about local funding for school districts, as the ad valorem tax is crucial for many educational institutions. Thus, the debate surrounding HB 658 likely revolves around issues of taxpayer equity and the necessity of maintaining adequate funding for public education.