AUSTIN (KXAN) — With billions saved in a “rainy day fund,” Texas lawmakers are working to find a way to cut taxes. Coming up with a plan everyone can agree on though is taking up a big chunk of time at the state Capitol.
The House wants to cut sales tax, but the Senate is pushing a plan to slash property taxes. The two chambers got together Tuesday morning to debate the differences, and are still working to come up with a plan everyone can agree on.
Sales tax on most items purchased in Texas contribute about $27 billion to the state, more than half of what Texas takes in when it comes to tax revenue. House lawmakers want Texans to keep $2.3 billion of that.
Others would prefer those cuts come in the form of a property tax break.
“You can purchase your home outright and you have to essentially pay your government or lease your land,” said Cris Erickson, who has lived in his South Austin home for five years. “I think that is frustrating from a homeowners perspective.”
The Senate’s plan aims to save the average family $206 a year.
“It’s about the same to me,” Erickson said of the choice to cut taxes.
“By all means, one or the other would be great,” Anderson added.
The House and the Senate versions of the tax cut plans passed their respective chambers, but they now need one group to take up the others idea.
Another big part of the tax cut plan focuses on Texas businesses.
House members want to cut the Franchise Tax by 25 percent across the board. The Senate has a different approach and calls for a 15 percent cut, but their plan would exempt businesses that make less than $4 million a year from paying the franchise tax altogether.