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.
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