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Proposition 7 - Constitutional Amendment for Transportation Funding

Proposition 7On November 3, 2015, Texas voters overwhelmingly approved Proposition 7, a constitutional amendment to dedicate portions of revenue from the state’s general sales and use tax, as well as from the motor vehicle sales and rental tax to the State Highway Fund for non-tolled projects. The amendment allocates the funds in the following way:

  • Beginning in September 2017 (fiscal year 2018), if state sales tax revenue exceeds $28 billion in a fiscal year, the next $2.5 billion of revenue will be directed to the State Highway Fund.
  • Beginning in September 2019 (fiscal year 2020), if state motor vehicle sales and rental tax revenue exceeds $5 billion in a fiscal year, 35% of the amount in excess of $5 billion will be directed to the State Highway Fund (see graphic below).

Proposition 7 Flowchart

Background

Prior to the state legislative session in 2015, the Texas Department of Transportation had identified a widening gap between available and needed funding for state transportation projects. In early 2015, Gov. Greg Abbott named transportation funding one of five emergency items for the 84th Texas Legislature to address. In response, the legislature passed a joint resolution during its regular session that authorized Proposition 7 to be placed on the ballot in November 2015.

More Information

The Prop 7 funding FAQ is available for additional information.

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