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Texas governor seeks sales tax increase to help raise funds

1 year 2 months 3 weeks ago Wednesday, April 10 2019 Apr 10, 2019 April 10, 2019 10:55 AM April 10, 2019 in News - AP Texas Headlines

By JIM VERTUNO
Associated Press

AUSTIN, Texas (AP) - Texas Gov. Greg Abbott is pushing for a sales taxes increase for the first time in nearly 30 years as Republican leaders struggle to deliver on simultaneous promises to boost money for education and cut property taxes.

The catch: Lawmakers would have to first agree to limit future property taxes.

The plan for a one-penny sales tax increase, announced Wednesday, would raise the statewide rate from 6.25% to 7.25%. Local government add-ons make the average sales tax rate across Texas about 8.25%.

The extra sales tax could help offset reduced local property taxes, which have taken on a bigger share of public school funding as Texas leaders sought to satisfy conservative voters by cutting costs and resisting calls for new spending.

Texas does not have a state income tax.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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