Relating to a reduction in the amount of sales and use tax collections that the owners of restaurants that purchase Texas farm-raised oysters are required to remit to the comptroller of public accounts.
This bill would directly amend Chapter 151 of the Texas Tax Code, which governs state tax regulations. Under the new law, restaurant owners will have the ability to deduct a specified amount from their tax liabilities based on their oyster purchases. This change is expected to encourage restaurants to buy and serve more Texas farm-raised oysters, thus bolstering local aquaculture industries and potentially increasing employment opportunities in this sector.
House Bill 3486 proposes a reduction in the sales and use tax collected from restaurant owners who purchase Texas farm-raised oysters. The legislation aims to support local seafood businesses by incentivizing food service establishments to utilize domestic oyster supplies, potentially benefiting both the economy and agriculture in Texas. By providing a tax deduction of $5 for every 100 oysters purchased, the bill seeks to alleviate some of the financial burdens on restaurants, thereby promoting the consumption of local produce.
While supporters of HB 3486 argue that it will stimulate the local economy and promote sustainable seafood practices, some could raise concerns about the potential loss of tax revenue for the state. The bill's impact on the broader tax base and whether such incentives would lead to significant economic returns are points that may lead to debates among lawmakers. Additionally, there may be discussions surrounding the administration of the new tax deductions, particularly in terms of compliance and enforcement by the comptroller's office, which could introduce new regulatory burdens.
Tax Code
Health And Safety Code
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Chapter 437. Regulation Of Food Service Establishments, Retail Food Stores, Mobile Food Units, And Roadside Food Vendors