Texas House Considers Sales Tax Decrease
- Apr 23, 2015 | Gail Cole

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)

