THE TEXAS CONSTITUTION

ARTICLE 8. TAXATION AND REVENUE

Sec. 7-c.  DEDICATION OF REVENUE FROM STATE SALES AND USE TAX AND TAXES IMPOSED ON SALE, USE, OR RENTAL OF MOTOR VEHICLE TO STATE HIGHWAY FUND.  (a)  Subject to Subsections (d) and (e) of this section, in each state fiscal year, the comptroller of public accounts shall deposit to the credit of the state highway fund $2.5 billion of the net revenue derived from the imposition of the state sales and use tax on the sale, storage, use, or other consumption in this state of taxable items under Chapter 151, Tax Code, or its successor, that exceeds the first $28 billion of that revenue coming into the treasury in that state fiscal year.
(b)  Subject to Subsections (d) and (e) of this section, in each state fiscal year, the comptroller of public accounts shall deposit to the credit of the state highway fund an amount equal to 35 percent of the net revenue derived from the tax authorized by Chapter 152, Tax Code, or its successor, and imposed on the sale, use, or rental of a motor vehicle that exceeds the first $5 billion of that revenue coming into the treasury in that state fiscal year.
(c)  Money deposited to the credit of the state highway fund under this section may be appropriated only to:
(1)  construct, maintain, or acquire rights-of-way for public roadways other than toll roads; or
(2)  repay the principal of and interest on general obligation bonds issued as authorized by Section 49-p, Article III, of this constitution.
(d)  The legislature by adoption of a resolution approved by a record vote of two-thirds of the members of each house of the legislature may direct the comptroller of public accounts to reduce the amount of money deposited to the credit of the state highway fund under Subsection (a) or (b) of this section.  The comptroller may be directed to make that reduction only:
(1)  in the state fiscal year in which the resolution is adopted, or in either of the following two state fiscal years; and
(2)  by an amount or percentage that does not result in a reduction of more than 50 percent of the amount that would otherwise be deposited to the fund in the affected state fiscal year under the applicable subsection of this section.
(e)  Subject to Subsection (f) of this section, the duty of the comptroller of public accounts to make a deposit under this section expires:
(1)  August 31, 2032, for a deposit required by Subsection (a) of this section; and
(2)  August 31, 2029, for a deposit required by Subsection (b) of this section.
(f)  The legislature by adoption of a resolution approved by a record vote of a majority of the members of each house of the legislature may extend, in 10-year increments, the duty of the comptroller of public accounts to make a deposit under Subsection (a) or (b) of this section beyond the applicable date prescribed by Subsection (e) of this section.
(Added Nov. 3, 2015.)