Bill

SB 313

87(R) - 2021
Senate Finance
House Ways & Means
Senate Finance
House Ways & Means
Safety
Taxation
Guns

Contact the Author

Joan Huffman

Phone:

512-463-0117

Capitol Office:

1E.15

Email:

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Joan Huffman

Co-Author(s)

Carol Alvarado
Lois Kolkhorst
Jane Nelson
Royce West
Judith Zaffirini

Sponsor(s)

Morgan Meyer

Bill Caption

Relating to a sales and use tax exemption for firearm safety equipment.

Fiscal Notes

Estimated Two ¬≠year Net Impact to General Revenue Related Funds for SB313, As Engrossed: a negative impact of ($1,590,000) through the biennium ending August 31, 2023.



Bill Analysis

SB 313 would exempt the sale, storage, use, or other consumption of firearm safety equipment from limited sales, excise and use tax.

Vote Recommendation Notes

Texas Action opposes SB 313 because it violates the limited government and free market principles.

The problem with government-created tax preferences, even when well intentioned, is that they more often than not come with unintended consequences by distorting the market. Not only do they favor a category of products or businesses over others, consumers are not actually guaranteed savings under these tax preference schemes. There is nothing preventing merchants from raising prices by the amount that would have been reduced at the register through the tax break. Furthermore, prices can rise due to supply and demand issues created when people rush to purchase tax-exempt goods. Either or both of these factors can lead to consumers actually paying more than they would have if the government had avoided tinkering in the marketplace to begin with. Texas should refrain from using the tax code to create incentives for people to buy particular products. 

Contact the Author

Joan Huffman

Phone:

512-463-0117

Capitol Office:

1E.15

Email: