Relating to the permissible uses of revenue attributable to the municipal sales and use tax for street maintenance.

SB 178 clarifies how local sales tax revenue can be used for street and sidewalk maintenance in Texas municipalities. It requires ballot language for tax elections to explicitly state that funds are for "maintenance, repair, and reconstruction of municipal streets or sidewalks" and restricts all such revenue to these specific uses only. The bill applies only to elections held after its effective date (September 1, 2025, unless passed with a two-thirds vote), not to existing tax programs. It directly affects cities that collect local sales taxes for infrastructure, ensuring these funds cannot be diverted to other purposes like parks or general operations. This is a procedural clarification, not a new funding mechanism.