News

Today, the Texas House of Representatives passed House Bill 12, by Rep. Harvey Hilderbran (R - Kerrville). House Bill 12 dedicates all sporting goods sales tax collections to the Texas Parks & Wildlife Department (TPWD) and the Texas Historical Commission (THC) to support state parks, local parks and historic sites.

"The measures in House Bill 12 provide a long term funding allocation plan for these two great agencies. House budget conferees will be diligent in their efforts to ensure that this infusion of resources is appropriated as they work with the Senate on House Bill 1," Speaker Craddick (R - Midland) said. "I would like to thank Rep. Hilderbran for developing a plan that allocates the necessary resources to the Parks & Wildlife Department and the Historical Commission so these agencies are able to focus on what they do best."

House Bill 12 lifts the cap imposed during previous sessions on revenue dedicated to the TPWD from the sporting goods tax. Currently, TPWD is only allocated $32 million out of the roughly $100 million the tax raises annually. By lifting this cap, more than $215 million will be allocated to TPWD over the next biennium. 

Today, the Texas House of Representatives passed House Bill 3928, the franchise tax correction bill, by Rep. Jim Keffer (R - Eastland), which makes key improvements to House Bill 3 passed during last year's Third Called Special Session.

"I would like to thank Rep. Keffer for his work to keep the franchise tax fair for Texas businesses while still protecting property tax relief for homeowners," Speaker Craddick said. "This type of legislation is just another example of successful policies that keep the Texas economy as one of the most dynamic in the country."

House Bill 3928 increases the small business franchise tax exemption from $300,000 to $600,000. Since the new exemption is indexed to inflation, the level of exemption will continue to increase. The legislation eliminates the double taxation of guaranteed payments to partners and corrects the net operating loss credit carry-forward provision allowing businesses to take their losses at 4.5 percent. A partnership re-organization loophole has also been closed to ensure that businesses do not avoid paying the franchise tax.

"With the overwhelming passage of House Bill 3928, House members made necessary corrections to ensure that the revised franchise tax will treat taxpayers similarly and fairly, and will be a steady source of revenue for property tax relief," Rep. Jim Keffer said. "By doubling the small business tax exemption, we will keep entrepreneurship thriving in our state."

Yesterday, the Texas House of Representatives passed House Bill 3900, the "Texas Tomorrow Fund II", by Representative Geanie Morrison (R-Victoria). The legislation creates new savings options to help Texas families pay for higher education.

"This proposal is an option that will benefit students, parents and our colleges and universities," Rep. Morrison said. "Under this plan, universities will be rewarded for making more judicious decisions regarding tuition and fees. This legislation will give Texas families more predictability about the cost of higher education while protecting the state from a shortfall."

Under Rep. Morrison's bill, families will be able to lock in today's rates for tuition and required fees for their children's future higher education needs, giving them more certainty about the cost of a college education. An investment in the Texas Tomorrow Fund II would be made by purchasing "units" each of which is worth one percent of one year’s tuition and required fees. There would be three types of units available for purchase, based on the highest priced public university, a weighted average at public universities, and a weighted average at junior colleges.