Relating to the imposition of an income tax on income that exceeds $100,000 to provide property tax relief and fund public education; providing penalties.
Impact
If enacted, HB 1735 will significantly alter the current tax landscape in Texas, a state known for having no income tax. The introduction of this income tax could have widespread effects on individual taxpayers, particularly those in higher income brackets, who would face additional tax burdens. Proponents of the bill argue that it will provide much-needed resources for public education and alleviate pressure on property taxes, which have been rising. However, opponents express concern about the implications of introducing a personal income tax, fearing it may deter high-income earners from residing in the state and affect economic growth.
Summary
House Bill 1735 proposes the implementation of a personal income tax on individuals whose taxable income exceeds $100,000. This bill aims to establish a graduated tax rate structure where the rate begins at 2% for income over $100,000 and increases to 6% for income exceeding $1 million. The revenue generated from this tax is intended for providing property tax relief and funding public education in Texas. Specifically, two-thirds of the revenue will be earmarked to reduce maintenance and operations taxes for primary and secondary education, while one-third will support the foundation school fund.
Contention
During discussions surrounding HB 1735, a notable point of contention arose regarding the balance of taxation and economic development. Supporters believe that an income tax can create a fairer tax system that funds essential public services, while critics worry that the increased tax burden could repel businesses and affluent individuals. Furthermore, the necessity of holding a referendum to adopt the income tax introduces additional complexity, as it requires voter buy-in, which may be uncertain given Texas' historical resistance to income taxes.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee.
Relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration.
Relating to state and municipal motor fuel taxes; providing civil penalties; creating criminal offenses; requiring occupational licenses; authorizing the imposition of taxes; providing for increases and decreases in the rates of taxes.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Relating to providing school district property tax relief through rent-relief and through adjusting entitlements, compression, and exemptions under the public school finance system.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to the imposition of a personal income tax on income that exceeds $250,000 to provide property tax relief and fund public education; providing penalties.
Relating to the imposition of an income tax on income that exceeds $150,000 to provide property tax relief and fund public education; providing penalties.