AUSTIN – The Texas Public Policy Foundation applauds Gov. Rick Perry’s signing of House Bill 735, which eliminates the Telecommunications Infrastructure Fund tax in September 2008.
“Repealing the TIF tax now instead of waiting until 2011 will save Texas consumers more than $210 million per year and more than $600 million in total,” said The Honorable Talmadge Heflin, a Visiting Research Fellow at the Foundation and a former Chairman of the House Appropriations Committee. “Although the tax already met its stated purpose to wire schools, hospitals, and libraries, Texas taxpayers have continued to pay the tax on their phone bills and the funds have been used for general government.”
The Foundation’s research has shown that Texans have the third highest telecommunications taxes of any state in the country. The TIF tax unnecessarily added to that tax burden.
“It isn’t very often that lawmakers will vote to end a tax,” Heflin said. “We applaud the Legislature and the Governor for letting taxpayers keep a little extra money in their pockets each month.”
The Foundation testified on House Bill 735 in both the House and Senate committee hearings, and educating lawmakers on the unnecessary tax was one of the Foundation’s top priorities for the 80th Texas Legislature.
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