TX SB178

Expands the permissible uses of municipal sales and use tax revenue for street maintenance to include "reconstruction" in addition to the existing purposes of maintenance and repair

Adds "sidewalks" as an eligible use of the street maintenance tax revenue, allowing municipalities to spend funds on sidewalk maintenance, repair, and reconstruction

Updates ballot language for elections to adopt, increase, or reauthorize the municipal street maintenance tax to reflect the expanded purposes (streets or sidewalks; maintenance, repair, and reconstruction)

Limits expenditures to municipal streets or sidewalks that existed on the date of the election to adopt the tax

Takes effect immediately with two-thirds vote of both legislative chambers, otherwise September 1, 2025; new ballot language requirements apply only to elections ordered on or after the effective date