Texas Senate Bill SB2235

Texas 2019 - 86th Regular

Caption

Relating to changing the sales and use tax rate of a metropolitan rapid transit authority.

Impact

This bill will amend the Transportation Code to give metropolitan rapid transit authorities more autonomy in adjusting their sales and use tax rates. By allowing for the possibility of decreasing these tax rates, the bill aims to enhance the authority's ability to respond to economic conditions and local needs. Voters can also influence the tax rate through petitions, which require signatures from at least 10 percent of registered voters in the authority to initiate an election for rate changes, thereby maintaining a level of public involvement in tax matters.

Summary

SB2235 proposes to alter the sales and use tax rate imposed by a metropolitan rapid transit authority. Specifically, the bill grants the board of the transit authority the power to decrease the sales and use tax rate either through an order or by calling an election if necessary. This is designed to provide the authority with flexibility in managing its tax rate, potentially benefiting local economies by reducing the tax burden on residents and businesses.

Contention

While the bill provides mechanisms for reducing tax rates, it may raise concerns regarding the revenue stability of the transit authorities. Critics might argue that decreased tax rates could limit the funding available for transit operations and improvements. Furthermore, the process by which voters can petition for tax rate changes could lead to fluctuations in funding, potentially undermining long-term financial planning for transit projects. Discussions around balancing tax burdens with necessary funding for public transit will likely feature prominently in legislative evaluations of this bill.