University students from across the state gathered at the Senate Committee on Finance Monday to show support for a bill that would allow students to buy textbooks tax-free during 10-day windows in August and January.
After hearing testimony supporting the bill by representatives from the Texas Retailers Association, the University Co-op, the Texas Faculty Association and the student governments of several universities, Senate Bill 49 was left pending in committee. Sen. Judith Zaffirini, D-Laredo, who authored the bill, said it would only apply to students with valid university identification but would allow the tax-free purchase of all books rather than just textbooks.
The cost of college in Texas rose by 257 percent from 1996 to 2005, according to the Texas Higher Education Coordinating Board. Students spend about $900 per year on textbooks alone, according to the U.S. Public Interest Research Group.
Government sophomore Zack Hall, chair of the UT Student Government Tax-Free Textbook Campaign, estimated that the bill would save each Texas college student about $300 over four years. About 21 state schools have also showed support of the bill, including Texas A&M University, Texas Tech University and Texas State University, Hall said.
Opposition to the bill focuses on the nearly $30 million in lost revenue from sales taxes, according to the bill's fiscal note. Sen. Steve Ogden, R-Bryan, who chairs the committee, said city governments fear the bill's passage, because cities stand to lose more than $5 million annually in sales tax revenue.
However, saving college students money could benefit the local economy, said Zach Neal, a member of Texas A&M University's student government legislative relations committee.
"It is my understanding that the main reason the Senate does not want to support this bill is because of the cost," he said. "It is our belief that by supporting this bill, you're actually helping to support the local economy."
Plan II junior and SG President Andrew Solomon testified to the committee that every dollar saved by students will go back to the local economy through other taxable purchases, such as food and clothing. A break from textbook sales tax would also encourage students to buy books locally rather than online, he said.
Spokesman for the city of Denton John Cabrales said Denton's two universities, the University of North Texas and Texas Women's University, would benefit from this bill, but the city would suffer. There is no proof that saved money would be put back into the local economy, he said in a phone interview. Cabrales was the only person to submit testimony against the bill Monday.
"We have crunched some numbers, and we are looking at somewhere in the neighborhood of $650,000 in revenue loss," Cabrales said.
Ogden said the committee will likely vote on the bill Thursday. A similar bill, HB 1434, by Rep. Patrick Rose, D-Dripping Springs, is also pending in the House Committee on Higher Education.
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