House Passes $4.9 Billion Tax Cut Plan

(Austin, Texas) Today, the Texas House of Representatives voted to pass a monumental $4.9 billion tax cut package in the form of two separate bills that were both unanimously supported by the Texas House Republican Caucus Members. House Bill 31 reduces the sales tax rate from 6.25 percent to 5.95 percent, creating the first ever 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 crafting this bold tax relief plan, the House asserted its belief that the combination of these two measures provides tax relief to every taxpayer, shrinks the size of government instead of shifting it, and provides permanent relief that can’t be taken away by local government or an appraiser.

“Today the Texas House made history by cutting the state sales tax rate for the first time. We also sent a clear message that we are committed to providing $4.9 billion in meaningful, permanent tax relief that will benefit all Texans instead of picking winners and losers. Most importantly, we signaled to taxpayers that they can hold us accountable to today’s promises because the tax reductions under House Bills 31 and 32 cannot be taken away without a future vote of the Legislature,” said Rep. Dennis Bonnen (R-Angleton).

“I’m proud of the commitment my colleagues and I made to meaningful tax relief that hardworking Texans deserve. Republican Caucus Members recognize that it is not our money, it is taxpayer money and that is where this $4.9 billion needs to be returned,” said Rep. Tan Parker (R-Flower Mound), Chairman of the House Republican Caucus.

HB 31 and HB 32 are now headed to the Senate for consideration.