The proposed tax rollbacks are the result of increased sales tax revenue and a healthier Texas economy.
Lieutenant Governor Dan Patrick says a trio of bills could produce $4.6 billion in tax relief. Patrick wants to pay for the cuts by boosting sales tax collections, while slowly weaning the state off its reliance on property tax revenue.
Patrick, who is from Houston, says the proposed cuts won’t affect the state’s pressing needs. “We will have, in the weeks ahead, a similar package to address the pension needs, teacher retirement healthcare and other key issues that senators have brought up in finance or have brought up to our office or our citizens have brought us.”
Senate Finance Committee chair Jane Nelson explains why they’re pushing for tax cuts.
“I think it’s important to remember that we all shared that pain of recession — families and businesses and government,” Nelson says. “We came out of it stronger. Our business is booming right now. Every Texan deserves to share in its benefits just as we shared in those sacrifices.”
The plan also seeks to expand homestead exemptions, providing $2.3 billion in tax reductions. That means about $200 annually per average homeowner.