The Plastics Pipe Institute, Inc. (PPI), representing more than 200 member companies across the plastic pipe industry, is one group that recently congratulated Texas voters on approving Proposition 4 — a landmark measure that secures dedicated funding for the state’s water infrastructure without raising taxes.
Texas’ House Joint Resolution (HJR 7) Proposition 4 requires the Texas Comptroller of Public Accounts to deposit to the Texas Water Fund, the first $1 billion of the net revenue derived from state sales and use tax that exceeds the first $46.5 billion of that revenue coming into the treasury in that fiscal year. The provision will go into effect Sept. 1, 2027 and will not expire until 2047. The Texas Water Fund is a special fund in the state treasury outside the general revenue fund that is administered by the Texas Water Development Board.
PPI President David M. Fink said the vote is a historic win for Texas.
“The passage of Proposition 4 is a historic win for Texas. By dedicating long-term funding to strengthen the state’s water infrastructure, voters have chosen to protect families, farmers, and businesses while keeping Texas an attractive place to live and work for generations,” said Fink. “This smart, responsible investment will strengthen Texas’s water systems and keep the state competitive for decades to come. It will also help to bolster Texas’s economy by supporting agriculture, businesses, and communities while ensuring reliable access to water for the future. The new bill is truly a model for other states to implement to save their water infrastructure.”
By using existing sales tax revenue rather than new taxes, the measure will enable aging systems to be modernized, reduce costly water loss, prepare the state for population growth, blunt recurring drought, and future challenges.
“I know that many of our member companies conducted grassroot campaigns to inform their customers in Texas, which helped to get voters to check the box for the bill,” Fink added. “The passage of Proposition 4 reflects the hard work and dedication of our PPI member companies, who supported this effort from the beginning. Their expertise and leadership, together with a broad coalition of partners, were essential in securing this historic win for Texas.”
The availability of sales and use tax deposits into the Texas Water Fund for Texas Water Development Board (TWDB) financial assistance programs is still contingent upon subsequent legislative appropriations, as well as the availability of state sales and use tax revenue that exceeds the first $46.5 billion.
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