AUSTIN, Texas (AP) – Texas would cut its sales tax rate for the first time in history under a House Republican plan that scraps homeowner tax relief sought by Gov. Greg Abbott.
The current sales tax rate in Texas is 6.25 percent. That would fall to 5.95 percent under a sweeping tax package that GOP House leaders said Wednesday is the best way to deliver significant tax cuts promised by conservatives.
On a $100 purchase, the lower rate would save a consumer 30 cents at the register.
The plan would also cost Texas more than $2 billion in revenue to spend on state services. Democrats say that money is better spent on roads or expanding prekindergarten.
The plan deepens differences with the Senate, which wants property tax cuts instead.