Tax churn

Tax churn is when one governmental entity taxes another governmental entity and then redistributes that revenue back to the originating entity. There is parasitic loss in the administrative process of collecting and redistributing the tax revenue which is government inefficiency.

All local 254 Texas counties pay the .20 cent per gallon Texas Motor Fuels tax for county vehicles. The State of Texas provides state funding to certain functions of County Government essentially returning those same tax dollars. This tax churn wastes hundreds of thousands of dollars annually.