Bill > HB3037

This bill establishes a mechanism for potentially reducing the state sales and use tax rate based on specific fiscal conditions. The bill requires the Texas Comptroller to calculate the ending certification balance for two state fiscal biennia (2025 and 2027) and compare the tax revenue amounts. If the 2027 biennium's projected tax revenue is more than 50 percent higher than the 2025 biennium's revenue, the Comptroller must calculate a new, lower tax rate that would bring the 2027 revenue down to 50 percent above the 2025 level. If this condition is met, the sales and use tax rate for the 2027 biennium would be automatically adjusted to this lower rate. The Comptroller must publish the new rate in the Texas Register and on their website, and notify sales tax permit holders. This provision is set to expire on December 1, 2027. The bill will take effect immediately if it receives a two-thirds vote in the Texas Legislature, otherwise it will take effect on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3037