Gov. Greg Abbott announced Wednesday that he is supporting legislation that would help lower property taxes.
The catch: A one-percent increase of the sales tax.
If approved, it would be the first increase of the sales tax in Texas in more than 30 years. It would go up from 6.25 percent to 7.25 percent.
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.
Abbott released a statement about the proposal on Wednesday:
“Texans are fed up with skyrocketing property taxes. At the beginning of the legislative session, the Governor, Lt. Governor and Speaker laid out an agenda for property tax relief through the passage of Senate Bill 2 and House Bill 2 to limit property tax growth. In addition to that effort, today we are introducing a sales tax proposal to buy down property tax rates for all Texas homeowners and businesses, once Senate Bill 2 or House Bill 2 is agreed to and passed by both Chambers. If the one-cent increase in the sales tax passes, it will result in billions of dollars in revenue to help drive down property taxes in the short and long term.”