Texas Sales Tax Reduction Proposed

Texas sales tax rate reduction is now on the table as lawmakers in Austin debate how to use a $33 billion state budget surplus.

Property tax cuts have been the main discussion so far. A sales tax reduction could touch everyone who spends money in Texas.

Everything sold at De Novo Active Boutique in the Dallas Bishop Arts District has sales tax added on top of the price. Store owner Lawrence Woodson said people are buying fewer items in these days of rising prices, so a sales tax reduction to help them would be great.

“Any little cutback is what we need because people are definitely cutting back, watching their wallet,” Woodson said.

At the grocery store, state sales taxes are not charged on food items, but some edible items like candy or soda pop are taxed, along with hygiene items and paper goods.

Customers at the new Food Basket grocery store on Simpson Stuart Road said they like the sound of a sales tax reduction.

Veralane McArthur said not enough is being done for people who really need help.

“Anything that helps cut down on the cost of food, gas, all the necessities that we all have to use is a bonus,” she said.

Customer Gayla Brackens said she shops around at multiple stores to save as much as possible so a sale tax reduction would help.

“Every little bit helps, you know what I’m saying, whether it’s big or little,” she said.

The proposed 8% sales tax reduction would change the state’s rate of $0.0625 per $100 to $0.0575. Shoppers who spend $1,000 would be taxed $57.50 instead of $62.50, a savings of $5.00. It amounts to much more on bigger items.

Dallas Democratic State Senator Royce West said he wants more than just a property tax cut.

“Sales tax relief is a broader base of relief if you will for citizens in the state of Texas, especially those persons who don’t have homesteads,” West said.

In Dallas, there are more renters than homeowners.

“If I had to choose between property tax and sales tax, at this point in my life I would choose sales tax,” Woodson said.

Lawmakers in Austin are now talking about both and the sales tax reduction has bi-partisan support.

In addition to West, Republican State Senator Bob Hall from Edgewood is also backing the sales tax rate cut.