Proposition 7 (“Prop 7″), a constitutional amendment drafted by legislators in the 84th legislative session and authorized by SJR 5, will appear on the November 2015 statewide ballot. The amendment would authorize a new, stable source of funding for transportation in Texas, dedicated to the construction and maintenance of roads. Upon passage, Prop 7 would dedicate a portion of the general sales and use tax and the motor vehicle sales tax to the general highway fund.
The amendment would provide a significant step toward meeting the unmet funding needs for transportation projects in Texas. The ballot language for the proposition reads:
“The constitutional amendment dedicating certain sales and use tax revenue and motor vehicle sales, use, and rental tax revenue to the state highway fund to provide funding for nontolled roads and the reduction of certain transportation-related debt.”
Current Supporters
Will Prop 7 raise my taxes?No. Voting yes on proposition 7 will NOT raise your taxes.Where does the money come from?
- $2.5 billion would be deposited into the state highway fund from state sales tax revenues above the first $28 billion dollars that year.
- 35% of the net revenue derived from the motor vehicle sales and rental tax above the first $5 billion dollars each year would be deposited into the state highway fund.
What can the money be used for? Will it be used to fund toll roads?Prop 7 cannot be used to pay for toll roads. The money deposited into the state highway fund can ONLY be used for:
- Construction, maintenance, and acquiring right of ways for public roads; or
- To repay the principal and interest on general obligation bonds issued by TXDOT
How much money will Prop 7 raise for the state highway fund?The Legislative Budget Board estimates that $2.5 billion would be deposited to the state highway fund in 2018 and 2019, and close to $3 billion in 2020 if Prop 7 is approved by voters.
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Will Prop 7 raise my taxes?
No. Voting yes on proposition 7 will NOT raise your taxes.
Where does the money come from?
$2.5 billion would be deposited into the state highway fund from state sales tax revenues above the first $28 billion dollars that year.
35% of the net revenue derived from the motor vehicle sales and rental tax above the first $5 billion dollars each year would be deposited into the state highway fund.
What can the money be used for? Will it be used to fund toll roads?
Prop 7 cannot be used to pay for toll roads. The money deposited into the state highway fund can ONLY be used for:
Construction, maintenance, and acquiring right of ways for public roads; or
To repay the principal and interest on general obligation bonds issued by TXDOT
How much money will Prop 7 raise for the state highway fund?
The Legislative Budget Board estimates that $2.5 billion would be deposited to the state highway fund in 2018 and 2019, and close to $3 billion in 2020 if Prop 7 is approved by voters.
