Abbott Makes The Case For Sales Tax Swap
Texas Governor Greg Abbott joined The Chad Hasty Show on Monday to discuss a plan first announced last week. Under the plan discussed by the Governor, the State of Texas would increase the sales tax by a penny in order to buy down property taxes.
According to Governor Abbott, this would only happen if the Texas Senate and House pass property tax reform, and "cap" the ability of school districts to raise tax rates by 2.5%.
The Governor said on Monday that if the ability of school districts to raise taxes by more than 2.5% is capped and the state raised the sales tax by a penny, it could reduce homeowners property tax rates by 16%.
The Governor on Monday also signaled there may be some wiggle room on the 2.5% cap on cities and counties, as Lt. Governor Dan Patrick did last Thursday on The Chad Hasty Show, but the Governor reiterated the need to cap school districts at 2.5%.
The Texas Senate and Texas House will each debate property tax reform beginning Monday in Austin.
Listen to Governor Greg Abbott's full interview above.