Texas Senate Bill SB2184

Texas 2017 - 85th Regular

Caption

Relating to new capital investment in the state.

Impact

The bill outlines specific conditions under which a seller is recognized as a 'verified invested seller.' This designation is granted to entities that have made substantial capital investments in Texas, which includes establishing a place of business and generating at least 100 jobs within the state. These sellers are subject to unique tax regulations, aiming to incentivize businesses to establish operations in Texas and promote economic growth. The legislation seeks to strike a balance between encouraging investment while ensuring that tax obligations are met.

Summary

SB2184 is a legislative proposal aimed at fostering new capital investment in the state of Texas. The bill introduces amendments to the Tax Code, particularly focusing on the sale and registration of motor vehicles. One of the key provisions of the bill is the requirement that sellers of motor vehicles add sales tax to the purchase price, which is to be collected and remitted as prescribed by law. This is intended to streamline the process for vehicle purchases and ensure compliance with tax regulations.

Contention

While SB2184 aims to boost capital investment, there may be points of contention regarding the definition and status of verified invested sellers. Concerns could arise about the criteria for qualification, and whether the intended benefits sufficiently outweigh any potential downsides, such as impacting local businesses that are not able to meet the higher thresholds set out in the bill. Additionally, the implications for tax revenue and the regulatory enforcement processes may also prompt discussion among lawmakers and stakeholders.