HB 3037
AN ACT relating to temporarily decreasing the rate of state sales and use
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Allows for a potential temporary decrease in the state sales and use tax rate based on revenue projections for the fiscal biennia ending in 2025 and 2027. If the ending certification balance from sales tax revenue in 2027 is more than 50% of the 2025 balance, the comptroller will calculate and publish a reduced tax rate that would bring the 2027 balance to 50% of the 2025 level. The potential tax rate reduction would apply during the 2027 fiscal biennium and automatically expire on December 1, 2027, potentially providing taxpayers and businesses with temporary tax relief.
Subject Areas
Bill Text
relating to temporarily decreasing the rate of state sales and use taxes under certain circumstances. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 151, Tax Code, is amended by adding Section 151.0511 to read as follows: Sec. 151.0511. TEMPORARY DECREASE IN TAX RATE; CONDITIONS. (a) Using any available methods and revenue estimates, the (1) determine the amount of the ending certification balance for the state fiscal biennium ending August 31, 2025, that is attributable to revenue during that state fiscal biennium from the taxes imposed under this chapter; (2) determine the amount, if any, of the estimated ending certification balance for the state fiscal biennium ending August 31, 2027, that is attributable to revenue during that state fiscal biennium from the taxes imposed under this chapter if those taxes are imposed at the tax rate provided by Section 151.051(b); (3) if the amount determined under Subdivision (2) is more than 50 percent of the amount determined under Subdivision (A) determine the tax rate that, when substituted for the tax rate described by Subdivision (2), results in the amount determined under Subdivision (2) equaling 50 percent of the amount determined under Subdivision (1); and (B) publish the tax rate determined under Paragraph (A) in the Texas Register and on the comptroller's Internet website and provide notice of that tax rate to sales tax (b) If the condition provided by Subsection (a)(3) is satisfied, the rate of the sales tax and use tax under this chapter applicable in the state fiscal biennium ending August 31, 2027, is the rate determined under Subsection (a)(3)(A), notwithstanding (c) This section expires December 1, 2027. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to temporarily decreasing the rate of state sales and use
Related Guides
Learn more about tracking Texas legislation and working with lobbyists.
How to Read & Track Texas Bills
Master bill numbering, understand legislative language, and learn effective tracking strategies.
Understanding Texas Legislative Deadlines
Navigate the 140-day session with critical calendar dates and filing deadlines.
How Laws Get Made in Texas
Follow a bill's journey from filing to the governor's desk through committees and floor votes.
When Should Your Business Hire a Lobbyist?
Discover the signs that your business needs professional advocacy at the Texas Capitol.