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$400 Million Tax Bill Heads To State House Floor

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AUSTIN (AP) – A major tax bill headed for the Texas House floor could create a major showdown over legislation pivotal to Gov. Rick Perry’s demand for tax relief.

The House on Tuesday is to consider nearly $400 million in business tax breaks through proposed reforms to the state’s maligned franchise tax. Businesses complain the tax is applied unevenly, while Democrats grouse about how the tax underperforms.

Perry has called for the Legislature to deliver $1.6 million in tax cuts before the session ends this month. He also vowed not to sign a new state budget unless lawmakers pass what he considers “significant” tax relief.

The price tag on the business tax reform bill could still rise. Among the proposals is a three-year exemption to companies that relocate to Texas.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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