Texas News

News > Texas News > Business tax not expected to hit goal

Business tax not expected to hit goal

It was a tax born in a barbecue joint, the story has it, and now it's giving state budget writers heartburn.
The Texas business tax comes due again today, and no one's suggesting it will yield anywhere near the approximately $6 billion it was initially forecast to produce annually.

It yielded $4.5 billion when first collected in 2008, based on the previous year's business activity. Last year, collections dipped to $4.3 billion. State Comptroller Susan Combs predicts the same amount will be collected this year.

“I think it was set up to fail,” said Sen. Kirk Watson, D-Austin, noting the levy was passed to help cover the cost of a cut in property tax rates for school districts. “I think when it was passed, they knew that it would not provide the appropriate swap that they were looking for, that it would not cover the reduction” in property taxes.

http://www.mysanantonio.com/news/local_news/business_tax_not_expected_to_hit_original_goal__again_93907674.html

Texas News

A 13-year-old Northeast Texas boy has been arrested on two warrants for capital murder in the deaths of his father...
A Dallas officer has been fired after driving past a woman who pleaded for help as her two children were taken by...
Some South Texas city leaders have endorsed a proposal to ban the use of hand-held cellphones while driving. The...
Out of an abundance of caution, Texas and Dallas County health officials have ordered four close family members of...
The announcement that five Dallas schoolchildren were possibly exposed to the first Ebola patient diagnosed in the...