BILL ANALYSIS

 

 

Senate Research Center	S.J.R. 24
86R2417 CJC-D	By: Kolkhorst et al.
	Finance
	2/22/2019
	As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

S.J.R 24 would automatically appropriate the sporting goods sales tax to the Texas Parks and Wildlife Department (TPWD) and the Texas Historical Commission (THC). The legislature would maintain the power to determine the specific uses of the funds and their allocation between TPWD, THC, and large county and municipal parks.

 

Our state's rapid growth in recent years has sparked an increase in support and use for state parks in Texas. State park visitation reached a record 9.7 million visits in fiscal year 2017. Unfortunately, this success has created many challenges, forcing several parks to regularly deny entry to visitors once they reach capacity. As the state park system approaches its 100th anniversary in 2023, the state must act to ensure that our parks have the resources they need to adequately fund deferred maintenance, staff, visitor safety and experience, and expansion of our state park system. THC is currently entitled under law to receive six percent of the sporting goods sales tax collection. By securing these funds, THC will have the ability to properly manage the historic sites currently under their control.

 

The comptroller of public accounts is required to estimate the portion of the state's sales tax revenue collected from the sale of goods related to sports and outdoor recreation. Statute currently requires this amount to be allocated between TPWD and THC; however, the actual appropriation is often much less than the amount estimated by the comptroller. By requiring the automatic appropriation of this amount in the constitution, the people of Texas will ensure that our state parks are protected for years to come.

 

Sustained and predictable funding through the automatic appropriation of the sporting goods sales tax offers a path forward to meet state park construction, operations, and customer demands while also protecting our valued historic treasures. 

 

�S.J.R. 24 proposes a constitutional amendment relating to the appropriation of the revenue received from the imposition of state sales and use taxes on sporting goods.�

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Article VIII, Texas Constitution, by adding Section 7-d, as follows:

 

Sec. 7-d. (a) Provides that for each state fiscal year, the net revenue received from the collection of any state taxes imposed on the sale, storage, use, or other consumption in this state of sporting goods that were subject to taxation on January 1, 2019, under Chapter 151 (Limited Sales, Excise, and Use Tax), Tax Code, is automatically appropriated when received to the Parks and Wildlife Department (TPWD) and the Texas Historical Commission (THC), or their successors in function, and is allocated between those agencies as provided by general law. Authorizes the legislature by general law to provide limitations on the use of money appropriated under this subsection.�

 

(b) Defines "sporting goods."

 

SECTION 2. Adds the following temporary provision to the Texas Constitution:

 

TEMPORARY PROVISION. (a) Provides that this temporary provision applies to the constitutional amendment proposed by the 86th Legislature, Regular Session, 2019, requiring the automatic appropriation of the net revenue received from the collection of state taxes imposed on the sale, storage, use, or other consumption in this state of certain sporting goods to TPWD and THC.

 

(b) Effective date, Section 7-d, Article VIII, of this constitution: September 1, 2021. Makes application of that section prospective.

 

(c) Provides that this temporary provision expires on January 1, 2022.

 

SECTION 3. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 5, 2019. Sets forth the required language of the ballot.