🟡Relating to a deduction from the amount of taxable sales used to calculate the amount of sales and use taxes that the owners of restaurants that participate in an oyster shell recycling program are required to remit to the comptroller of public accounts
HB 3487
🟡 HB 3487: Restaurant Tax Deduction for Oyster Shell Recycling
What it says it does:
HB 3487 lets restaurants lower their sales taxes when they recycle oyster shells. For every 50 pounds of shells turned in to a recognized recycling program, the restaurant can deduct $2 from its taxable sales. It is meant to help restore reefs and improve water quality along the Texas coast.
What it actually changes:
It adds a permanent carveout to the state tax code and gives the Comptroller full authority to decide which recycling programs qualify. There is no sunset clause, no spending cap, and no public oversight of who gets recognized. It shifts fiscal discretion and environmental verification to one statewide office.
Who is pushing for it:
Supporters listed in the files include the Texas Restaurant Association, Texas Oyster Mariculture Association, Galveston Bay Foundation, Coastal Conservation Association, and the City of Corpus Christi. The bill was authored by Rep. Todd Hunter and sponsored by Sen. Lois Kolkhorst.
Who benefits:
Large coastal restaurants and seafood companies gain a steady tax break tied to their shell recycling volume. Recognized nonprofits and mariculture operators receive a free supply of shell material for reef and habitat projects. Cities gain environmental benefits without direct costs.
Who gets left out or exposed:
Independent recyclers or small restaurants that are not part of recognized programs may not qualify. Taxpayers statewide share the cost through reduced state revenue. There are no public reports showing how much environmental progress results from these deductions.
Why this matters long term:
HB 3487 creates a permanent model for using targeted tax deductions instead of transparent grants to fund environmental goals. It centralizes power in the Comptroller’s office and sets a precedent for similar industry carveouts. What begins as a small incentive could grow as more businesses seek the same structure.
What to watch next:
How the Comptroller defines “qualified” programs and whether those rules favor connected operators. Whether participation data and environmental outcomes will ever be made public. Whether future sessions expand this model to other materials or industries.
Bottom line:
HB 3487 ties conservation to business incentives but weakens oversight and transparency. It looks good on paper but quietly moves control and accountability away from the public eye. Texans should keep an eye on who gets recognized and how the benefits are measured.
#HB3487 #TexasPolicy #TaxCode #EnvironmentalPolicy #WatchTheRules