Powers of regional transportation authorities

Texas House Bill 3187 (HB3187) proposed to reduce the maximum sales and use tax rate that regional transportation authorities can impose from 1% to 0.75%. This reduction would not apply to authorities that had already pledged the 1% tax revenue as security for bonds issued before the bill's effective date. The bill was introduced on February 21, 2025, and as of May 12, 2025, it had been reported favorably as substituted and sent to the Calendars Committee.

Supporters of HB3187 argue that lowering the maximum tax rate would alleviate the tax burden on residents and businesses, potentially stimulating economic growth. They believe that regional transportation authorities can maintain their operations effectively with a reduced tax rate, especially if they have not committed the higher rate to existing bond obligations.

Opponents express concern that reducing the tax rate could lead to decreased funding for regional transportation projects, potentially hindering infrastructure development and maintenance. They worry that this could result in service cuts or delays in planned improvements, negatively impacting commuters and the broader community.