Abbott Proposes One Cent Increase in State Sales Tax

Sales assistant handing customer shopping bags

How about higher sales taxes?

The state's Republican leadership, Gov. Abbott, Lt. Gov. Dan Patrick, and House Speaker Dennis Bonnen...today proposed an increase in the state sales tax, which is now 6 1/4%, to 7 1/4%.

Abbott says that would raised 'billions of dollars' in revenue which would allow short term and long term reductions in the skyrocketing property taxes which the governor says is the number one concern of Texans.

The measure currently being debated in the Legislature would not cut anybody's property taxes, it would simply limit future property tax increases to 2 1/2 percent annually without the vote of the taxpayers.

The one cent increase in the state sales tax would have to be approved by the voters as a Constutional amendment, and would go into effect in January.

The proposal would not affect the local sales taxes which are stacked on top of the state sales taxes, for projects like VIA Metro Transit, Aquifer preservation, and Pre-K-4-SA, they would remain the same.

Photo: Getty Images


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