Gov. Abbott, top lawmakers push to raise sales tax to 7.25 percent

[Elderberry]

Houston Chronicle by  Allie Morris and Jeremy Wallace 4/10/2019

Republican Gov. Greg Abbott and the leaders of the Texas Legislature are throwing their support behind a plan to raise sales taxes by 1 percentage point in an effort to then reduce property taxes. The plan, however, would ultimately go before Texas voters, who could decide as early as November whether to make the tax trade.

The tax swap plan would increase the state portion of sales taxes to 7.25 percent, tying California for the highest rate in the nation, according to the Tax Foundation, a nonprofit advocacy group based in Washington, D.C. With local-option increases of up to two percent, the sales tax would be 9.25 percent in most of Texas. That means residents buying a $1,000 television would now pay $92.50 in sales tax, a jump of $10.

Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen, R-Angleton, put out a joint statement to the media touting the tax swap.

“If the one-cent increase in the sales tax passes, it will result in billions of dollars in revenue to help drive down property taxes in the short and long term,” the statement said.

The proposal is the latest attempt by the Republican-led Legislature to address growing property taxes. Lawmakers have also pitched plans to cap yearly property tax increases enacted by cities, counties and school districts. Yet another proposal would increase the homestead exemption for property owners, reducing the taxable value of their homes.

More: https://www.houstonchronicle.com/news/politics/texas/article/Gov-Abbott-top-lawmakers-push-1-percent-sales-13756344.php

[Ghost Bear]

Abbott is about to lose my vote.

[Hoodat]

Taxed Enough Already

At some point, you simply have to say "No More" and place a limit on what government can spend.

[aligncare]

Abbott is about to lose my vote.

For clarity, you mean in the primary, right?

[Ghost Bear]

For clarity, you mean in the primary, right?

Primary, yes. General election, I would have to think about it.

[berdie]

So instead of property owners bearing the brunt of school cost...everyone would?

I'll have to give it some thought.

[Hoodat]

So instead of property owners bearing the brunt of school cost...everyone would?

Give the parents vouchers, and let the schools fend for themselves.  Empower principles to hire/fire at will within the budget that their school derived through vouchers plus tuition.  Then close the schools that suddenly don't have any students.

[Sanguine]

So instead of property owners bearing the brunt of school cost...everyone would?

I'll have to give it some thought.

And, you could somewhat control what you spent.

But they really need to consider cutting spending.

[IsailedawayfromFR]

Seems this move would assure more people shop out of state ala Amazon.

[Sanguine]

Seems this move would assure more people shop out of state ala Amazon.

But, we pay sales taxes on Amazon purchases.

[IsailedawayfromFR]

But, we pay sales taxes on Amazon purchases.

You might,  but I certainly do not on all.

[Sanguine]

You might,  but I certainly do not on all.

I need to know how to do that!

[truth_seeker]

You might,  but I certainly do not on all.

By all means, won't you share how you do that?

[Smokin Joe]

So instead of property owners bearing the brunt of school cost...everyone would?

I'll have to give it some thought.

There is a third option. Find ways to be more efficient in school spending.

Voters here recently turned down a $60 million bond issue, (for the second time), because the school system is whining about not having enough money. The same school system just built a monstrosity of a High School, poorly designed in some aspects, and now claim it isn't big enough.
In the meantime, drilling activity has slowed and leveled off, people are leaving the area, and projections were based on a continuing boom.

The vote, for the second time, indicates that people are no longer knee-jerking when the educrats say they need more money.
About time the education industry got a lesson in economics.

[Elderberry]

Abbott, Patrick, and Bonnen Propose Sales Tax Increase

“If the 1-cent increase in the sales tax passes, it will result in billions of dollars in revenue to help drive down property taxes in the short and long term.”
By Brandon Waltens|April 10, 2019   

https://texasscorecard.com/state/abbott-patrick-and-bonnen-propose-sales-tax-increase/

Texas’ “big three” statewide leaders have begun to coalesce around a proposed solution to delivering property tax relief this session: raising the sales tax.

In a joint statement released on Wednesday, Gov. Abbott, Lt. Gov. Dan Patrick, and House Speaker Dennis Bonnen announced their new policy goal:

    Texans are fed up with skyrocketing property taxes. At the beginning of the legislative session, the governor, lieutenant governor, and speaker laid out an agenda for property tax relief through the passage of Senate Bill 2 and House Bill 2 to limit property tax growth. In addition to that effort, today we are introducing a sales tax proposal to buy down property tax rates for all Texas homeowners and businesses, once Senate Bill 2 or House Bill 2 is agreed to and passed by both chambers. If the 1-cent increase in the sales tax passes, it will result in billions of dollars in revenue to help drive down property taxes in the short and long term.

More at link

[jpsb]

Without a plan to drive down property taxes this looks a lot like just another tax hick. Property taxes go to the county and school districts. Sales taxes go to the state. I guess the idea is that the state could do more for the local gov so that local gov would not raise PT. I'd need to see the details. Sounds like a bait and switch.

[GrouchoTex]

Re: Gov. Abbott, top lawmakers push to raise sales tax to 7.25 percent

Not unless they lower property taxes first.

[thackney]

So instead of property owners bearing the brunt of school cost...everyone would?

I'll have to give it some thought.

Reality is that renters are paying the property tax.  Landlords are not charity organizations.  All the cost of those in that business, including taxes, is paid by the renters.

[berdie]

I can't disagree @thackney .  I was in property management my whole working life.

However...people in rentals pay rent (includes all expenses relative).  People in homes make a house payment AND pay property taxes (insurance and repairs).

I don't mind if we all share in the cost of property taxes for education and a reduction of property tax. Wouldn't landlords also enjoy that reduction? How exactly that would work will be interesting to see. Will the extra one per cent go to each county pro rata?

I just had another thought...filing the sales tax returns would be a nightmare. The Texas tax laws can give a person gray hair as it is.
(Since it probably won't pass...I'll wait to see...)

[truth_seeker]

Good luck, Texas.

Almost like Taxes.

Our experience in Calif, has been:  Government is a hungry monster. It will use any means, to get your money.

Promised money for roads, will go for commuter lanes and bicycle lanes.

High speed trains will devour $billions, and end not completed. The highly popular leeg from scenic Bakersfield, to Merced might getbuilt.

[Night Hides Not]

Without a plan to drive down property taxes this looks a lot like just another tax hick. Property taxes go to the county and school districts. Sales taxes go to the state. I guess the idea is that the state could do more for the local gov so that local gov would not raise PT. I'd need to see the details. Sounds like a bait and switch.

Those who live in apartment complexes should be forced to pay a surcharge to the local school district. Call me a racist, but the vast majority of apartment complexes are filled with H-1b families. My ISD has gone from majority white to 50% Indian over the past ten years. The carryover from their culture, the caste system, permeates the interpersonal dynamics as well. Assimilation is not a concern for most of them.

[Hoodat]

Those who live in apartment complexes should be forced to pay a surcharge to the local school district. Call me a racist, but the vast majority of apartment complexes are filled with H-1b families.

Racist.

btw, an influx of Asian kids into your school will cause standards to INCREASE, not decrease.  Asian kids perform better than your average American cracker kid.  Their admissions standard into college is more stringent as well.  White kids get points for signing their name on the application that Asian kids don't get.  It's called 'affirmative action'.  It is also the reason that Asian kids perform better, since their parents already know the deck is stacked against them.

[ABX]

This would only work if the government would hold to it's word on eliminating or drastically reducing property tax.

I don't believe they will. I know almost every city and district will jump in and fill the gap back up with their own rates.

I would love to see sales tax be the only tax because it gives citizens another vote with their consumer choices (don't like what the government is doing, withhold taxible spending). But I don't trust them not to make this just a net increase overall.

In many areas, the Texas Republican legislature is spitting on voters.

[ABX]

Those who live in apartment complexes should be forced to pay a surcharge to the local school district. Call me a racist, but the vast majority of apartment complexes are filled with H-1b families. My ISD has gone from majority white to 50% Indian over the past ten years. The carryover from their culture, the caste system, permeates the interpersonal dynamics as well. Assimilation is not a concern for most of them.

They do through their rent.

The property owner says the property tax on the full assessed value of the complex. That goes toward his expense calculation when determining rental rates. It may not be a line item on their rent bill, but it is a part of where it goes.

[Idiot]

There is a third option. Find ways to be more efficient in school spending.

Voters here recently turned down a $60 million bond issue, (for the second time), because the school system is whining about not having enough money. The same school system just built a monstrosity of a High School, poorly designed in some aspects, and now claim it isn't big enough.
In the meantime, drilling activity has slowed and leveled off, people are leaving the area, and projections were based on a continuing boom.

The vote, for the second time, indicates that people are no longer knee-jerking when the educrats say they need more money.
About time the education industry got a lesson in economics.

In the past our local voters would shoot down just about every bond issue that would come up.  In the last few years everything has changed they tend to support about every bond issue.  The change is that the senior citizen's property taxes are frozen, so a rise in taxes does NOT affect them and they are the ones who in the past rejected the bond issues.