Texas House Bill HB3501

Texas 2021 - 87th Regular

Caption

Relating to limiting the assessment of certain fees and taxes during declared states of disaster.

Impact

The proposed changes are expected to significantly impact state laws related to taxation and business regulations. If enacted, businesses and nonprofit entities would not be required to pay various fees, including licensing fees, during periods when their operations are restricted. Additionally, those that have prepaid fees would be entitled to a pro rata refund for the duration of the restriction, either receiving a refund or opting to apply the amount toward future fees. This modification is designed to support economic stability and recovery for entities adversely affected by disasters.

Summary

House Bill 3501 aims to provide relief to businesses and nonprofit entities during declared states of disaster by limiting the assessment of certain fees and taxes. Specifically, the bill prohibits the state, as well as political subdivisions, from assessing any taxes or fees on entities whose operations are restricted due to executive orders or proclamations related to a disaster. This measure is intended to alleviate financial burdens on these organizations during challenging times when their ability to operate is hampered.

Contention

While the bill is positioned as a necessary support mechanism for struggling businesses, there may be points of contention regarding its implementation and scope. Lawmakers could debate the potential loss of revenue for the state and local governments that depend on tax and fee income. There may also be concerns about how effectively these offsets can be administered, and whether they truly provide sufficient relief compared to the losses faced by businesses during disasters. The balance between necessary government revenue and support for local economies will likely be a central theme in discussions surrounding the bill.