Texas Senate Bill SB1088

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/11/11
• Introduced: 3/2/11
• Refer: 3/16/11
• Report Pass: 4/11/11

Caption

Relating to the imposition by certain municipalities and municipal transit departments of the local sales and use tax in certain federal military installations.

Impact

The passage of SB1088 will modify the Texas Tax Code by amending subchapter B of Chapter 321, allowing municipalities to levy sales and use taxes in federal military installations. This could lead to increased revenue for municipalities, which may use these funds for public services and infrastructure improvements. Additionally, it may also influence other municipalities in the state to review their tax structures, potentially leading to a wider discussion concerning local taxation practices in relation to federal properties.

Summary

Senate Bill 1088 addresses the imposition of local sales and use taxes by certain municipalities and transit departments operating in the vicinity of federal military installations. Specifically, the bill applies to municipalities with populations exceeding 500,000 that are located along the border with Mexico. The legislation allows these municipalities to include areas within federal military installations located in their extraterritorial jurisdiction as part of the geographical area subject to local sales and use taxes. This change is intended to ensure that local taxation rules account for these often-overlooked areas, promoting fair tax treatment within border communities.

Contention

While the overall objective of the bill seems to be oriented towards enhancing tax revenue and recognizing the unique nature of military installations within municipal boundaries, there may be points of contention regarding the implications for local businesses and residents within those municipalities. Critics may argue that such tax impositions could deter economic activity within military installations, potentially leading to higher costs for goods and services for military personnel and their families. Furthermore, there may be concerns around equitable tax treatment, especially for residents living adjacent to those military installations.