Enrolled Bill Summary

Senate Bill 1705 amends the Tax Code to authorize the governing board of a metropolitan rapid transit authority created before 1980 in which the principal municipality has a population of less than 1.2 million to repeal the exemption of telecommunications services from the sales and use tax, if approved by a majority vote of a committee of the authority. Revenue collected as a result of the repeal of the tax exemption is for the purpose of an advanced transportation district.

Reason Given for Veto:  "Current law allows metropolitan transit authorities (MTA) to tax telecommunications services if approved by each city that created the authority. Senate Bill No. 1705 would make it easier for VIA MTA in San Antonio to tax telecommunications services by taking the decision away from smaller cities and allowing the City of San Antonio and Bexar County to make the decision. This bill is unnecessary because voters will have an opportunity to approve a sales tax for an advanced transportation district, as proposed in Senate Bill No. 404, which I already have signed into law.