Bonnens HB 31 passes unanimous 141-0 vote
Texas Insider Report: AUSTIN Texas Its important that we continue to practice fiscal discipline and its also important that we provide sensible and
meaningful tax relief" said Texas House Speaker Joe Straus earlier this year. Tuesday after the Texas House gave overwhelming approval to
not one but two tax cutting bills Straus noted The Texas House has voted to provide all Texans tax relief that encourages job creation and economic growth.
The House looks forward to a productive conversation with the Senate about how best to deliver results on
this issue and the many others.
In order to deliver on previous promises and now voters expectations of some significant form of reduction in the tax burden on Texans:
- House Bill 31 would cut the state sales tax rate from 6.25 to 5.95 and
- House Bill 32 would reduce franchise tax rates by 25.
The House approved a total of $4.9 billion in tax cuts Tuesday while marking a clear line in the sand when compared to the efforts of the Texas Senate which favors property tax cuts.
House Ways & Means Committee Chairman Dennis Bonnen (right R-Angleton) who earlier this month
announced his tax cut efforts during an interview with Texas Insiders Jim Cardle authored the two bills and touted how the House effort would cut sales taxes in Texas for the first time in history."
A sales tax cannot be eroded by a local tax hike or rising appraisals said Bonnen.
Instead we would be using our tax dollars for a tax cut that we control."
Should Bonnens HB 31 which the House passed on a unanimous 141-0 vote reach the governors desk it would be the first states sales tax cut in Texas history.
- Bonnens HB 32 would enact $2.6 billion in across-the-board franchise tax cuts over the biennium the equivalent of a 25 cut.
- The Texas Senate has proposed a 15 franchise tax cut by exempting businesses that make less than $4 million annually from the franchise tax.
Bonnen amended both of his bills to allow the Texas Comptroller the ability to cut the sales tax and franchise tax further should the Texas economy continue its expansion and lead state revenues to exceed the forecasts used in estimating the overall costs of the bills.
