This week, the Texas House took several important steps toward finalizing the budgeting process.  We made significant strides to end budget gimmicks employed by previous legislatures and more importantly, the House approved tax cuts that will reduce the taxes paid by EVERY Texan.

The Texas House unanimously passed H.B. 31, which is an historic cut to the state sales tax.  Never before has the legislature reduced the state portion of the sales tax.  H.B. 31 reduces the state sales tax from 6.25% to 5.95%.  With this tax cut, you will see a savings every time you make a purchase.  What is important to note about this sales tax cut is its lasting nature.  The legislature has cut property taxes in the past, only to see those cuts eroded by rising local tax rates and rising appraisal values.  The sales tax cut cannot be undone by anyone but the legislature and will actually become more valuable as prices increase.

The House also passed H.B. 32 which reduces the franchise tax paid by Texas businesses.  The House plan would reduce the rate by 25% across that board and provide a mechanism to eventually phase out the franchise tax.  This tax cut will benefit all Texas businesses and will encourage job creation.

The House also passed a measure that would end a budget gimmick practice that has been in place for many years.  In the past, the state budget has relied on up to $5 billion in dedicated funds - that is money collected for one purpose but held by the state - to balance the state budget.  This money is from fees that should be spent for their stated purpose or not collected.  I am proud that since I have been here, we have reduced the amount of these misused funds by over $2 billion.

The House also passed a constitutional amendment, which you will hopefully get to vote on in November, that would mandate this practice be phased out in the coming years and then would be banned.

This week, I passed Kari's Law out of the House.  Sen. Eltife had already passed this important bill through the Senate so it is now on its way to the Governor's desk.  I am honored to have been able to work with Kari's family and Sen. Eltife to pass this legislation that will ensure that Kari's legacy will live on.

As the legislative session continues, I want to encourage you to contact me if you have any questions or concerns. I want to hear your opinion regarding the issues that are important to you. It is with your input that I am able to best represent you. My office number is 512-463-0556 or district9.paddie@house.state.tx.us.