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Texas House Considers Sales Tax Decrease


 Could it be time to mess with the sales tax rate?

A bill currently under consideration in the Texas House seeks to reduce the Texas state sales tax rate.

The original version of HB 31 sought a very modest decrease, dropping the rate from the current 6.25% to 6.24%. A substitute version (not yet released) calls for a more dramatic reduction. It would lower the rate to 5.95%. Bill sponsor Dennis Bonnen says it would provide “tangible tax relief” to “families and businesses of all sizes whenever they buy something.”

In his 2015 State of the State Address, Texas Governor Greg Abbott promised to “permanently reduce the business franchise tax” and said he would “insist on property tax reduction.” He did not call for a reduction in sales tax. However, the governor did note that Texas sales tax revenue has grown for 58 consecutive months, and he has said recently that he is “open to a … proposal to reduce the sales tax rate.”

The governor may be open to the idea, but Lieutenant Governor Dan Patrick is staunchly opposed to it. He called the plan “out of step with Texans, my office, the Senate and the governor.”

If a sales tax cut is approved, it would be the first time in the state’s history that the stateside sales tax rate goes down rather than up. (Dallas News).

photo credit: TSLAC Represents Texas at the National Book Festival (Washington DC) 9.21.13 via photopin (license)


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.