As the state of Texas struggles to find revenue to balance its $27 billion budget shortfall, lawmakers have begun looking for all possible revenue sources.
In March, officials agreed to pull $3.2 billion from the state Rainy Day Fund in order to plug current budget holes, but most lawmakers are much less willing to use the fund for its biennial budget.
Now, legislators are debating whether or not to pass a measure that would suspend the annual August sales tax holiday during difficult fiscal periods such as this year and next. According to the Legislative Research Organization, the proposal would generate an additional $17 million in revenue this year, and in 2012 could pull in an extra $57 million.
However, as WFAA-TV reports, many consumers rely on the tax holiday for back-to-school shopping and, if nixed, could significantly damage some families' budgets.
"Retailers say … the break helps lower income families a lot, and their sales - and state taxes - actually increase, especially from the extra sales offered," the news station reports.
While the House is expected to vote on the measure soon, the Senate appears less thrilled, suggesting retail entrepreneurs may take confidence in forming an LLC in Texas this year.
Tags : incorporation news, taxes, tx
Posted: May 4th, 2011