HB 2859 by Ashby: Takes Away From Property Tax Relief

HB 2859 seeks to allow those who receive grant funds from the Infrastructure, Investment, and Jobs Act passed by the U.S. Congress for the purposes of broadband development not to have those grants subjected to the franchise tax. Though there remains a question over whether the state should tax those grants to begin with, as they represent taxpayer money collected by the federal government, by allowing an exemption from the tax, they would also simultaneously be taking millions of dollars away from the property tax relief fund, which benefits all property taxpayers, due to how the fund, school funding, and the nature of the franchise tax works in Texas. For these reasons, TFR opposes HB 2859.