Texas House Bill HB242

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to exempting textbooks purchased, used, or consumed by university and college students from the sales and use tax for limited periods.

Impact

The implementation of HB 242 would have a notable impact on both state revenue and student finances. Tax exemptions for textbooks would mean reduced sales tax income for the state during the designated exemption periods. However, supporters argue that this act will encourage educational purchases among students, potentially increasing overall sales volumes outside of the exemption period. Educational institutions might also see increased student enrollment as the cost of education becomes slightly more manageable.

Summary

House Bill 242 is designed to provide a temporary sales and use tax exemption for textbooks purchased by university and college students in Texas. The bill aims to alleviate the financial burden on students by exempting the sale, use, or consumption of educational books from taxes during specified periods each year. This initiative reflects a recognition of the high costs associated with higher education, and seeks to support students in meeting these costs by allowing them to purchase necessary educational materials without the added tax expense.

Contention

While the bill has garnered support from various educational groups and student organizations, it also faces contention, particularly regarding its fiscal implications. Opponents may raise concerns about the long-term effects on state tax revenues and the potential need for compensatory measures to offset the losses incurred from these exemptions. There is also the ongoing debate regarding whether such short-term tax relief measures adequately address the broader issues of educational funding and student debt in Texas.

Notable_points

Another aspect to consider is the method of establishing a student's eligibility for the exemption, which requires the presentation of valid student identification. This requirement aims to prevent misuse of the tax exemption, but may also introduce complexities for some students, particularly those who may not have direct access to student ID cards at the time of purchase.