The bill, H.B. No. 3037, proposes a temporary decrease in the state sales and use tax rates under specific conditions. It introduces a new section, Section 151.0511, to the Tax Code, which mandates the comptroller to assess the ending certification balance for the state fiscal biennium ending August 31, 2025, and to estimate the balance for the biennium ending August 31, 2027. If the estimated balance for the latter period, when taxes are imposed at the current rate, exceeds 50% of the earlier balance, the comptroller is required to determine a new tax rate that would reduce the estimated balance to 50% of the earlier amount. This new tax rate must be published and communicated to sales tax permit holders.

If the conditions outlined in the bill are met, the sales and use tax rate for the fiscal biennium ending August 31, 2027, will be adjusted to the newly determined rate, overriding the existing rate specified in Section 151.051(b). The provisions of this section will expire on December 1, 2027. The bill is set to take effect immediately upon receiving a two-thirds majority vote in both houses, or otherwise, it will take effect on September 1, 2025.

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