What this is
HB 312 gives cities and counties the power to hold elections asking voters if they want a new local sales tax for property tax relief.
HB 312 is a new Texas state law that gives our cities and counties the power to ask voters about a supplemental local sales and use tax. This law creates a clear path for communities to seek voter approval on a new tax that could help with property tax relief and fund local services.
The law sets up how this process works. A city or county can hold an election asking voters to approve or reject a new sales tax. The ballot would clearly state the tax rate and explain that money would go toward reducing property taxes and providing revenue for community services. Voters get to decide whether their community takes this step.
There are important limits built into the law. The sales tax rate cannot exceed 1 percent. Once voters approve the tax, it takes effect on the next January 1 that arrives at least six months after the election results reach the state comptroller. This gives communities and businesses time to prepare.
This law opens a new option for our communities to strengthen their finances while supporting property tax relief. Cities and counties can now decide whether to ask their voters about this opportunity.
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The law also specifies how the money would be used. Half of the revenue goes directly to property tax relief. The other half can be used for any purpose the city or county's general budget allows, such as roads, schools, public safety, or other community needs. This dual purpose gives communities flexibility while ensuring property taxes decrease.
Key details
- Tax Rate Maximum: 1 percent
- Revenue for Property Tax Relief: 50 percent
- Effective Date Timing: Next January 1 after at least 6 months from election results
- Bill Sponsor: Jeff Barry
- Bill Status: Introduced
About Texas Legislature
The Texas Legislature is the state legislature of Texas, consisting of the House of Representatives with 150 members and the Senate with 31 members. Meeting in regular session every two years, the legislature passes stat…
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How this affects households
Under $30,000
You would pay more on things you buy but save money on property taxes if you own a home. Renters might see lower rent if landlords pass property tax savings along.
$30,000-$60,000
You would pay a small amount more when shopping but could save more on property taxes since you likely own a home. The property tax savings often outweigh the sales tax costs.
$60,000-$100,000
You would pay more in sales tax on purchases but get meaningful property tax relief on your home. Most families in this range come out ahead overall.
Over $100,000
You would pay the most in new sales tax since you buy more things, but you also get the biggest property tax savings on your likely higher-value home.
How to get involved
- 1Start with the snapshot above to know what this is in a glance.
- 2Read why it matters so you can speak to it in your own words.
- 3Weigh in using the button above.
When you call, you can say: “Hi, I saw "Texas Law Lets Cities and Counties Ask Voters About New Sales Tax" on Community Exchange and want to know how to take part.”
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