FOR IMMEDIATE RELEASE 04/30/2015
Texas House Passes $4.9 billion Tax Cut Plan
Austin TX, — Today, the Texas House of Representatives voted to pass a monumental $4.9 billion tax cut package in the form of two separate bills. House Bill 31 reduces the sales tax rate from 6.25 percent to 5.95 percent, creating the first 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.
In constructing this bold tax relief plan, the House asserted that the combination of these two measures provides permanent tax relief to every Texas taxpayer that cannot be taken away by local governments or rising appraisals.
Upon passage of the House's tax cut plan Representative Mark Keough issued the following statement:
"Over the last few weeks, I have received numerous questions regarding tax cuts in Texas. Virtually all the questions had to do with which tax cuts would be better for Texans (property tax cuts, or sales and franchise tax cuts). As a homeowner, I will always be in favor of deep and permanent property tax relief. However, without serious appraisal reform in our present structure property tax cuts would be negated by rising property values, and would not be permanent. Conversely, sales and franchise tax cuts passed by the house will allow all Texans to retain more of their liquid cash in the immediate while extending tax cuts permanently into the future. While I am proud to support the Houses plan for tax cuts for all Texans, I have also joint-authored House Bill 2041, which addresses the need for appraisal cap reform by limiting the maximum appraisal increase allowed per year."
Representative Mark Keough represents District 15, which encompasses the southern portion of Montgomery County including the cities of Shenandoah, Oak Ridge North, and The Woodlands Township.