Published: 10-16-08
Austin Texas – Americans for Prosperity-Texas director Peggy Venable joined a press conference today of groups to applaud the elimination of the Texas Telecommunications Infrastructure Tax (TIF).
“Seldom do we get to see a government program such as the TIF fund and the TIF tax eliminated and we are grateful to bill sponsors Rep. Joe Straus (R-San Antonio) and Sen. Tommy Williams (R-The Woodlands) and to legislative leaders who helped push this tax cut through the legislature” said Venable. “Consumers won’t miss seeing the TIF tax on their monthly phone bills.”
“With a total savings of over $600 million eliminating the TIF fee is one of the largest tax cuts in Texas history” said Venable.
Repealing the TIF fee represents savings of $175987000 million in 2009 $211754000 million in 2010 and $212 325000 million in 2011 according to the fiscal note.
Created in 1995 by the legislature the TIF provided funding for technology and broadband access for Texas schools and libraries through a 1.25 fee on Texas telephone subscribers’ services which was to be eliminated once $1.5 billion in revenue was raised to fund the program.
Having reached its cap in 2003 legislators then diverted TIF revenues into the general revenue fund until 2011. In 2007 the legislature revised the sunset to September 2008.
The TIF tax is one of 61 Texas taxes and fees and the only tax to have been eliminated last legislative session. While the property tax is a local tax AFP is working to lift that burden from overtaxed homeowners.
