P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
FOR IMMEDIATE RELEASE
June 15, 2015
AUSTIN – Several pieces of legislation authored and sponsored by Texas State Senator Jane Nelson, R-Flower Mound, were signed by Governor Greg Abbott today. The bills, including SB 1, HB 7 and HB 32, provide more than $4 billion in tax relief for Texas homeowners and businesses.
"The Texas economy produced more than enough revenue to meet our needs, so we have a responsibility to return some of those funds back to the taxpayers who earned it in the first place. This will provide much-needed relief to Texas homeowners and businesses, who should benefit from the success they created," said Senator Nelson. "Combined, this legislative package will make Texas an even more attractive place to live and do business."
The bills signed by the Governor include:
SB 1 - Property Tax Relief: SB 1 increases the homestead exemption for school district property taxes from $15,000 to $25,000, providing $1.2 billion in property tax relief over the biennium for Texas homeowners. It is the enabling legislation for SJR 1, which will put the question of the increased home exemption before voters this November.
HB 32 - Franchise Tax Relief: HB 32 reduces the franchise tax on Texas businesses by 25 percent, increases the revenue threshold for businesses to use the E-Z rate from $10 million to $20 million and reduces the E-Z rate from .575 percent to .331 percent. It will provide $2.56 billion in tax relief to businesses over the biennium.
HB 7 - Occupations Tax Repeal: HB 7 provides $250 million in tax relief through repealing 16 state occupations taxes, for professions including accountants, engineers, dentists, physicians and others. It also reduces the state's reliance on General Revenue-Dedicated accounts for budget certification, increasing transparency in the budget process and ensuring fees are spent on intended purposes.