On November 3rd, 2015, Texans will vote on Proposition 7. Proposition 7 is a constitutional amendment that would dedicate a portion of the state’s general sales and use tax, motor vehicle sales and rental taxes to the State Highway Fund for the use of non-tolled roads. To address transportation funding issues, Texas Legislation passed Senate Joint Resolution 5 in May, which would direct billions of dollars into the State Highway Fund. Senate Joint Resolution 5 will appear on the November ballot as Proposition 7.
- Starting September 2017 (fiscal year 2018), if general sales and use tax exceed $28 billion, the next 2.5 billion would be directed to the State Highway Fund
- Starting September 2019 (fiscal year 2020), if the state’s motor vehicle sales and rental taxes exceeds $5 billion in a fiscal year, 35% of the amount above $5 billion would be directed to the State Highway Fund.
Proposition 7 is not a new tax and funds come from additional revenue from the state’s existing taxes. These funds could only be used to purchase right-of-ways, to build, maintain and rehabilitate non-tolled public roads and to pay down certain transportation-related debt.
For more information about Proposition 7, click on the link below.
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