Texas House Bill HB3304

Texas 2015 - 84th Regular

Caption

Relating to an exemption from the sales and use tax for tangible personal property sold to or used by certain state data center services providers.

Impact

The enactment of HB 3304 will amend the Texas Tax Code, specifically adding Section 151.3095. It allows state data center services providers to purchase tangible personal property without incurring sales taxes, as long as those items are used in the course of delivering services to state agencies. Consequently, this change can lead to significant savings for state operations by minimizing the overall taxation on vital technological resources needed for efficient service delivery.

Summary

House Bill 3304 introduces a sales and use tax exemption for tangible personal property that is sold to or used by certain state data center services providers. This legislation aims to facilitate the operations of these providers, which support state agencies by offering a variety of services such as managed servers, mainframe services, and bulk printing. By exempting applicable property from sales and use tax, the bill intends to reduce operational costs for state agencies that rely on these services, thereby promoting efficiency within state government operations.

Sentiment

The general sentiment surrounding HB 3304 appears to be largely positive among lawmakers and stakeholders in the technology and state agency sectors. Supporters view the bill as a rational move toward modernizing government operations and streamlining the procurement process for state agencies. Proponents believe this tax exemption will enhance the capacity of state technology services, which are crucial for the effective functioning of public services.

Contention

Notably, the bill's support may face scrutiny from some taxpayer advocacy groups who could argue against tax exemptions as a potential reduction in state revenue. While the bill is aimed at improving efficiency within state government, critics may raise concerns about the long-term fiscal impact and whether such exemptions are warranted, as they can complicate budgetary planning for public services. It demonstrates a common tension in legislative discussions between the need for efficient government operations and the accountability of fiscal expenditures.