Texas House approves slicing state sales taxes for 1st time

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AUSTIN (AP) – The House has preliminarily approved a $4.9 billion tax cut package featuring the first sales tax reduction in Texas history – setting the chamber up for a fight with the Senate over whose tax plan is best.

Passed Tuesday after shorter-than-expected debate, the House’s two-pronged tax cut would slice sales taxes and business franchise taxes.

Angleton Republican Rep. Dennis Bonnen, who authored both bills, said the cuts will “reach all Texans of all income levels.” He added that the tax savings will increase the state’s economic output while boosting Texans’ personal income.

Once both facets get final, procedural House votes, chamber leaders will have to negotiate with the Senate, which has approved cutting property taxes instead of sales taxes.

Gov. Greg Abbott has declined to say which approach he prefers.Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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