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HB 3487

Relating to a deduction from the amount of taxable sales used to calculate the amount of sales and use taxes that the owners of restaurants that participate in an oyster shell recycling program are required to remit to the comptroller of public accounts.

89th Legislature (2025) Introduced by Chuy Hinojosa and 3 co-sponsors

Texas allows restaurants in oyster shell recycling programs to deduct participating sales from taxable revenue, reducing their sales tax liability to incentivize environmental participation.

Effective on . . . . . . . . . . . . . . .
#comptrollerofpublicaccounts(v2608) #environment--recycling(i0336) #oysters(s0292) #parks&wildlife--general(i0585) #parks&wildlife--hunting&fishing(i0560) #restaurants(s0297) #taxation--general(i0815) #taxation--sales(i0800)
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Bill Summary · HB 3487

Legislative bill overview

HB 3487 creates a sales tax deduction for restaurant owners who participate in an oyster shell recycling program in Texas. The deduction applies to the taxable sales amount used to calculate their sales and use tax obligations to the state comptroller. This incentivizes restaurants to participate in environmental programs that repurpose oyster shells rather than sending them to landfills.

Why is this important

Oyster shell recycling has environmental benefits—crushed shells are used in coastal restoration, water filtration, and construction materials—but participation requires effort and infrastructure changes. By reducing the tax burden on participating restaurants, the state aims to increase adoption of the program while supporting both environmental goals and a key Texas industry (seafood/hospitality). The bill was signed into law in June 2025 and is now in effect.

Potential points of contention

  • Narrow scope: The tax break applies only to restaurants in oyster shell recycling programs, potentially creating unequal treatment among similar businesses and questions about why this specific environmental activity qualifies over others
  • Revenue impact: The state loses tax revenue from participating restaurants, raising questions about fiscal trade-offs and whether the environmental benefit justifies the cost
  • Implementation clarity: Details about program eligibility, how deductions are calculated and verified, and administrative burden on businesses and the comptroller's office may need clarification

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

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