Texas Senate Bill SB1465

Texas 2013 - 83rd Regular

Caption

Relating to exempting certain amounts charged for certain cable television services from the sales and use tax.

Impact

The passage of SB1465 is expected to impact state revenue collections as it translates into a sales tax exemption for consumers, effectively lowering their monthly bills for cable television services. This could lead to increased accessibility or affordability for consumers in Texas, particularly benefiting lower-income households that rely on cable services for entertainment and information. However, state officials will need to carefully monitor the financial implications of this tax exemption on the state's overall revenue and budgets.

Summary

SB1465 aims to exempt certain amounts charged for cable television services from the sales and use tax in Texas. Specifically, the bill proposes that the first $75 of a monthly charge for cable television services, which are subject to a franchise fee under relevant Texas laws and federal statutes, be exempt from taxation. This marks a significant change in the application of sales tax to this service and is intended to alleviate financial burdens on consumers subscribing to cable services.

Sentiment

The general sentiment toward SB1465 appears to be positive among consumers and advocacy groups who see this as a favorable development in terms of consumer rights and financial relief. However, there may be concerns from budget analysts or tax officials regarding the potential long-term impacts on state revenue. Supporters argue that the bill will promote consumer savings and access, while critics worry about its sustainability and effect on the state's fiscal health.

Contention

Notable points of contention surrounding SB1465 could arise from the implications it places on existing tax structures and state funding mechanisms. While the intent is to provide immediate financial relief to consumers, critics might argue about the precedent set for future tax exemptions and the possibility of increases in other tax areas to compensate for the revenue loss. Additionally, discussions could focus on equity and fairness in taxation, raising questions about who ultimately benefits and who bears the costs of such exemptions.