Texas House passes $4.9 billion tax cut package

AUSTIN — On Wednesday, April 29 the Texas House voted to pass a monumental $4.9 billion tax cut package that was unanimously supported by the Texas House Republican Caucus Members. House Bill 31 reduces the sales tax rate from 6.25 percent to 5.95 percent, creating the first ever state sales tax reduction in Texas history. House Bill 32 addresses burdensome business taxes by providing a 25 percent across the board franchise tax cut and allows more businesses to EZ-file their franchise taxes.

In crafting this bold tax relief plan, the House asserted its belief that the combination of these two measures provides tax relief to every taxpayer, shrinks the size of government instead of shifting it, and provides permanent relief that can't be taken away by local government or an appraiser.

"Today the Texas House made history by cutting the state sales tax rate for the first time. We also sent a clear message that we are committed to providing $4.9 billion in meaningful, permanent tax relief that will benefit all Texans instead of picking winners and losers. Most importantly, we signaled to taxpayers that they can hold us accountable to today's promises because the tax reductions under House Bills 31 and 32 cannot be taken away without a future vote of the Legislature,” Rep. Dennis Bonnen, Chairman of the House Ways and Means Committee, said.

Rep. John Wray, a member of the Ways and Means Committee stated, "I, along with my fellow committee members, have worked very hard this session to develop a strategy that ensures these cuts will benefit every Texan and cannot be eroded by local taxes hikes or rising appraisals. I agree with Chairman Bonnen's assessment that tax relief should place more money in the hands of Texans, stimulate the economy, and limit the size of government--this tax cut accomplishes all of these and I appreciate his leadership."

HB 31 and HB 32 are now headed to the Senate for consideration.