Bills would reduce state sales tax, exempt diapers & feminine hygiene products
TEXAS (CBSNewsTexas.com) – A new bill would cut the state's portion of the sales tax from 6.25% to 5.75% – which could save you money on a variety of goods, including big ticket items.
Ruth Hendelman and others we spoke with hope lawmakers pass it. "I think the sales tax is a regressive tax, so I think that's more fair to do it that way, to a greater number of people."
Another consumer, A.J. Rosman said, "Anything that puts more disposable income in the hands of people really need it is a good thing."
The legislation comes as state lawmakers consider how to give Texans money back now that the budget surplus has reached a record – nearly $33 billion.
Democratic State Senator Royce West of Dallas authored the sales tax cut bill. "This will be the session that Texans will see tax relief. And we want to make certain from my perspective that we give the broadest swath of Texans tax relief."
Conservative Republican State Senator Bob Hall, whose district includes Rockwall and parts of eastern Dallas County likes the measure and has signed on as its co-author. "When we have such a surplus, I think it's the ideal time to say we can dial back on some of our revenue streams and one of them that affects all Texans is the sales tax. I can't imagine the arguments against doing it."
Both Senators said they also still support the idea of lowering property taxes for homeowners and small to medium sized businesses.
If approved by lawmakers and signed by Governor Greg Abbott, it would take effect Oct. 1.
There's also a proposal to eliminate the state sales tax on certain products here in Texas.
That bill would exempt feminine hygiene products, children's diapers, baby wipes and bottles, and medicines, blood-glucose monitoring strips, and other items.
Consumers like Sylvia Collins like this idea too. "Yes, I don't think there should be any tax on that. It's not just an option of something that you want, it's a need."
It would take effect September 1st if approved by lawmakers and signed by the Governor.