House Concurs with Senate Amendment of HB 735 to Eliminate Telecommunications Infrastructure Fund Tax
Published: 05-27-07
Published: 05-27-07
Austin Texas – The Texas House today accepted the Senate amendment to HB 735 by Rep. Joe Straus (R- San Antonio) et al to eliminate the Telecommunications Infrastructure Fund (TIF) fee. The bill is now on its way to the Governor’s desk."Passage of HB 735 is victory for all Texans” said Peggy Venable state director of Americans for Prosperity. "Eliminating this telephone tax was the right thing to do and will benefit taxpayers across the state.”
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 and modified based on comments discussed during a recent Senate Finance Committee hearing.
With a total savings of over $600 million eliminating the TIF fee is one of the largest tax cuts in Texas history.
“Today lawmakers took a bold step in providing meaningful tax relief for Texas businesses and families” said Bill Hammond with the Texas Association of Business. “Returning $600 million to taxpayers will help keep our state’s economy strong and put money back into the pockets of Texans.”
Created in 1995 by the legislature the TIF provided updated 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 goal in 2003 legislators opted to divert TIF revenues into the general revenue fund until 2011 due to massive budgetary shortfalls. The Senate amended HB 735 to eliminate the TIF tax in September 2008 three years earlier then its current sunset date but one year later than the House version of HB 735. Sen. Tommy Williams (R-The Woodlands) was the bill’s Senate sponsor.
A broad assortment of groups support eliminating the Telecommunications Infrastructure Fund this year including: Americans for Prosperity-Texas Early Chamber of Commerce FreedomWorks Greater Houston Partnership Greater San Antonio Chamber of Commerce Hispanic Alliance for Progress Institute the Longview Partnership MyWireless.org National Black Chamber of Commerce National Federation of Independent Business-Texas Property Rights Organization of Texas Rockport-Fulton Area Chamber of Commerce Texans for Texas Texans for Taxpayer Relief Texas Association of Business Texas Citizen Action Network Texas Eagle Form Texas Federation of Republican Women and Texans for Fiscal Responsibility..
