Texas House Bill HB957

Texas 2019 - 86th Regular

Caption

Relating to the use of sales tax revenue collected under certain contracts.

Impact

The law is likely to impact urban areas significantly, especially those with high populations and existing drainage or road infrastructure needs. By directing a minimum percentage of the sales tax revenues to specific projects, the bill aims to improve infrastructure and benefit local residents in the districts outlined, specifically focusing on areas like Harris-Galveston and Fort Bend. This could lead to enhanced public safety and improved travel conditions as municipalities invest in necessary infrastructure improvements.

Summary

House Bill 957 addresses the use of sales tax revenue collected under certain contracts, particularly focusing on municipalities and districts with specific population characteristics. The bill mandates that municipalities that receive revenue from sales taxes related to these contracts use at least 50 percent of these funds for drainage or road projects. These projects must either be conducted within the district benefiting from the sales tax or within a five-mile radius of the district's boundaries. Additionally, major thoroughfare projects must align with the county's major thoroughfare plan.

Contention

Though the bill seeks to promote local infrastructure development, it may raise concerns about the allocation of funds and the effectiveness of mandated expenditures. Some lawmakers and constituents might argue that while the intention is good, there should be more flexibility for municipalities in determining how sales tax revenues should be allocated. Detractors may contend that such regulation can impose undue restrictions on local governance, limiting municipalities' ability to prioritize their specific needs beyond just drainage and road projects.