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Bill

Bill

SJR 66

Proposing a constitutional amendment dedicating a portion of the revenue derived from state sales and use taxes and insurance premium taxes to the Texas water fund.

89th Legislature (2025) Introduced by Carol Alvarado and 21 co-sponsors

Proposes constitutional amendment dedicating portion of Texas sales and insurance taxes to establish permanent water infrastructure funding requiring voter approval.

Referred to Finance
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Bill Summary · SJR 66

Legislative bill overview

SJR 66 proposes a constitutional amendment that would dedicate a portion of Texas state sales tax, use tax, and insurance premium tax revenues to fund water infrastructure and management projects. The amendment requires voter approval through a statewide referendum before taking effect. This represents a permanent, constitutionally-protected funding mechanism rather than annual legislative appropriations.

Why is this important

Water infrastructure is critical for Texas's rapidly growing population and economy, yet funding has historically been inconsistent and insufficient. Dedicating tax revenue constitutionally ensures reliable, long-term financing for water projects like treatment facilities, pipelines, and conservation efforts. However, this also locks in spending priorities and reduces legislative flexibility in budgeting during economic downturns.

Potential points of contention

  • Tax burden concerns: Dedicating existing sales and insurance premium tax revenue means less money available for other state priorities (education, healthcare, transportation) unless taxes are raised
  • Vagueness on allocation: The bill doesn't specify what percentage of revenue goes to the water fund or how funds would be distributed among regions with different water needs
  • Constitutional inflexibility: Once enacted, amending dedicated funding requires another constitutional amendment, making it difficult to adjust if priorities or circumstances change

Compiled from official sources — confirm details with the bill’s official record.

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