AUSTIN, Texas (FOX 7 Austin) - For the first time in 30-years, Texas lawmakers could raise the state's sales tax. The proposal would help cut property taxes.
Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen are endorsing a one-cent tax swap idea that’s described as a buy down.
The plan is to increase the state sales tax from 6.25% to 7.25%. Many local communities add on to the state rate, for example the combined sales tax rate in Austin is 8.25%. As part of the proposed tax hike, local communities would lower property tax rates in return for the extra revenue.
Sam Robles with Progress Texas and Andy Hogue with the Travis County GOP join Fox 7's Rebecca Thomas to discuss the proposal.