Texas House Bill HB3709

Texas 2017 - 85th Regular

Caption

Relating to authorizing a county to impose a tax on the sale of certain solid materials and substances.

Impact

By allowing counties to establish and enforce this tax, HB3709 provides local governments with a new revenue stream specifically aimed at funding the maintenance and improvement of county roads. This effect aligns with the growing need for enhanced infrastructure as populations expand and road maintenance becomes increasingly critical. The introduction of such a tax may assist counties in managing their transportation needs more effectively, ensuring better road conditions for their residents, as well as for commercial transport businesses that rely on these routes.

Summary

House Bill 3709 aims to authorize counties in Texas to impose a tax on the first sale of certain solid materials and substances, such as clay, stone, and gravel, which are extracted from natural deposits. This tax is intended to be levied at a rate of up to 15 cents per ton. The bill defines key terms necessary for its implementation, including who qualifies as a seller and what constitutes a taxable material. A seller would be responsible for collecting this tax as part of the sale price, become liable for remitting it to the county, and may even retain a percentage as reimbursement for collection costs.

Contention

Notably, the bill’s passage could lead to debates about the added financial burden on sellers of solid materials and consumers in the locality. Some stakeholders may argue that imposing such a tax could increase costs for construction and mining industries and subsequently the prices of materials for homeowners and builders. Additionally, there may be concerns regarding the administrative aspects of implementing the tax, particularly how it would be collected and the potential burden it places on businesses to comply with new reporting requirements.