HB 28

85(R) - 2017
House Ways & Means
House Ways & Means

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Dennis Bonnen

Bill Caption

Relating to the use of certain surplus state revenue, in certain circumstances, to adjust franchise tax rates to phase out the franchise tax and to the expiration of that tax.

Fiscal Notes

From the LBB: an impact of $0 through the biennium ending August 31, 2019. However, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund and the General Revenue Fund of up to ($3,500,000,000) for the 2020-21 and subsequent biennia. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program

Bill Analysis

HB 28 would amend the Tax Code to require the comptroller, between September 1st and December 15th of each odd-numbered year, to determine the ending balance of general revenue related funds available for certification for the preceding state fiscal biennium and the franchise tax rates and adjusted tax rates based on the estimated revenue yield of the lesser of the ending cash balance or $3.5 billion. Finally, once the adjusted tax rates are less than 15% of the franchise tax rate, the franchise tax would expire.

Vote Recommendation Notes

This bill enhances our individual liberty and limited government principles by using state surplus funds to gradually phase out the franchise tax allowing individuals to have the liberty to spend their own money how they see fit. We support HB 28.

Organizations Supporting

Americans for Prosperity
Centerpoint Energy 
R Street Institute
Texas Apartment Association
Texas Association of Builders
Texas Association of Business
Texas Association of Realtors
Texas Chemical Council
Texas Conservative Coalition
Texas Public Policy Foundation
Texas Retailers Association
Texas Royalty Council
Texas Taxpayers & Research Association

Organizations Opposed

Center for Public Policy Priorities