Texas House Bill HB4248

Texas 2025 - 89th Regular

• Filed: 3/10/25

Caption

Relating to the authority to impose municipal sales and use taxes; authorizing an increase in the rate of a tax.

Impact

If enacted, HB 4248 would primarily impact local government taxing authority within Texas. It modifies the limitations on how much sales tax municipalities can impose by raising the upper limit for combined local taxes from two percent to three percent for certain eligible municipalities. This change is expected to provide those municipalities more flexibility in managing their budgets and funding local projects, taking into consideration various local financial needs.

Summary

House Bill 4248 seeks to amend existing tax code provisions regarding the authority of municipalities in Texas to impose and increase sales and use taxes. The legislation is aimed at allowing municipalities that meet certain population and geographical criteria to adopt additional taxes for their benefit. This is particularly significant in areas where local governments may require additional revenue for infrastructure, public services, or economic development initiatives.

Contention

The bill may face potential pushback, particularly from entities that fear increased taxation could burden residents and businesses. There is a notable concern regarding the balance of power and autonomy between state and local governance, as critics may argue that enabling higher taxes could set a precedent for undue taxation by local governments. Proponents, however, emphasize that this bill empowers local authorities to address specific community needs effectively and sustainably.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 321. Municipal Sales And Use Tax Act
  • Section: 101