Seal of the Senate of the State of Texas Welcome to the Official Website for the Texas Senate
Seal of the Senate of the State of Texas
Welcome to the official website for the
Texas Senate
Senator Jane Nelson: District 12
Senator Jane Nelson
P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
News Release
July 11, 2005
Contact: Dave Nelson

AUSTIN -- For the third time in the past three years, the Texas Senate has approved a plan to reduce property taxes and implement new methods of funding for public education in Texas. Senators approved HB 3 by a 20-8 vote in the early morning hours today (3:34 a.m.).

"As a former public school teacher who served two terms on the State Board of Education, I want to ensure that our legislation provides a viable funding system that will not only support our schools but also encourage academic success," Senator Nelson said. "As a businesswoman, it is important to me that we do not replace Robin Hood with a levy of taxes on businesses. I voted for HB 3 only after the payroll tax was removed and a sunset date was added for the franchise tax. I will continue to press on those fronts as the process continues."

HB 3 now moves to a conference committee made up of Senators and Representatives from the Texas House to iron out differences between the two versions. The version approved by the Senate includes the following highlights:

  • Property tax rate cap reduced 20 cents per $100 valuation in 2006 and another 5 cents in 2007, with rate dropping a total of 40 cents (from current $1.50 to $1.10) by 2010.
  • Provides $4.8 billion overall property tax relief for 06-07.
  • Closes Delaware and Geoffrey Loopholes.
  • Franchise tax repealed by January 1, 2008.
  • Sales tax rate increases by half a cent.
  • Additional $1 per pack tax placed on cigarettes.
  • Alcohol taxes increase by 20 percent.
SENATOR JANE NELSON, R-LEWISVILLE, represents District 12, which includes parts of Tarrant and Denton counties.