Texas Senate Bill SB178

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to the permissible uses of revenue attributable to the municipal sales and use tax for street maintenance.

Impact

The impact of SB178 on state laws is significant, as it would formalize and enhance the legal framework governing how local municipalities can utilize sales and use tax revenues. By ensuring that these funds are directly tied to street maintenance, the bill reinforces the state's commitment to improving infrastructure. It potentially increases transparency and accountability in local governance since residents will have clearer guidelines on how their taxes contribute to city streets and sidewalks.

Summary

SB178 aims to amend Sections of the Texas Tax Code concerning the permissible uses of revenue from municipal sales and use taxes specifically for street maintenance. This legislative effort seeks to clarify that tax revenue collected can be dedicated solely to the maintenance, repair, and reconstruction of municipal streets and sidewalks. Such a clarification is intended to streamline the language regarding what local governments are allowed to do with the funds raised under these taxes, making it easier for municipalities to allocate resources towards critical infrastructure.

Contention

While many stakeholders may view the bill positively for promoting infrastructure improvements, it could face objections from those concerned about local governance and autonomy. Specifically, critics may argue that strict regulations on the use of tax revenues could limit local governments' flexibility in addressing diverse community needs. Furthermore, the requirement for specific ballot language may complicate future elections regarding tax increases, leading to contentions over local preferences and priorities in funding allocation.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 327. Municipal Sales And Use Tax For Street Maintenance
  • Section: 006
  • Section: 0065
  • Section: 007
  • Section: 008