Lawmakers stake early claims with flurry of tax relief bills amidst pre-filed legislation
Texas Insider Report: AUSTIN Texas With
443 bills already filed by the end of last week the count going into
the 2015 Legislative Session in Austin well exceeds that of the same period in 2012 and with potential
state revenues projected to be in excess of the official estimates forecast by
outgoing Comptroller Susan Combs tax relief proposals
loom large in the measures filed to date.
The states main business tax a modified
gross receipts tax pushed through the legislature during a 2004 Legislative Session continues to be a subject of widespread interest attracting close to a dozen pre-filed bills so far during the early filing period that precedes the 2015 Texas Legislative Session.
One measure Senate Bill 134 by new incoming
Health & Human Services Committee chair Sen. Charles Schwertner (right R-Round Rock) would increase the small business exemption from the current $1 million to $5 million exempting 80000 business from the tax. If successful only 60000 of the states one
million liability protected entities would pay the tax according to the Texas Taxpayers and Research Association.
Simply exempting more businesses from the franchise tax does nothing to improve the tax and only makes it less fair said
Texas Taxpayers & Research Association (TTARA) president Dale Craymer a well-respected Austin policy expert.
Many criticize the federal income tax because half the people do not pay it but if some of these (pre-filed) bills pass only 6 of formally registered Texas businesses could be subject to the franchise tax.
Some two dozen proposals addressing various aspects of
the property tax system have already been introduced. They include constitutional amendments to increase the homestead exemption and lower the appraisal cap on residential property.
Because property taxes are levied by local jurisdictions not the state any reduction in property tax revenue would hit schools parks streets and other core government services that many Texans rely upon. And the push for property tax relief for residential property worries business groups opposed to a split-roll system in which
business property is taxed at a higher rate.
Transportation-related taxes also garnered a good bit of attention during the first week of bill-filing with most focusing on ending diversions than increasing taxes or revenues.
House Speaker Joe Straus (left R-San Antonio) talked about ending
road fund diversions last summer which was later echoed by many of the winning statewide candidates as well as numerous House and Senate members who know the issue touches a hot-button with many Texas voters.
