Texas Comptroller Glenn Hegar released a report detailing the state’s tax exemptions and tax incidence.
The report is required by state law, however, Comptroller Hegar decided to release the report early. It is typically made public at the beginning of the legislative session.
“Given the complex revenue and spending matters Texas lawmakers will be facing, including issues such as school finance, pensions and infrastructure, I thought it important to get this report to members of the Legislature well before the session begins. With more than six weeks until the 86th Legislature convenes, my office stands ready to assist lawmakers as they begin to lay the groundwork to tackle these critical issues,” said Hegar.
The report provides value estimates of each exemption, exclusion, discount, deduction, special accounting method, credit, refund and special appraisal available to payers of Texas’ sales, franchise, motor vehicle sales, oil production and gasoline taxes, as well as property taxes imposed by school districts.
Aggregate exemptions for the next fiscal year will total an estimated $59.8 billion. Of this sum, exemptions related to the state taxes detailed in the report will account for $45.6 billion. School property tax exemptions will make up the remaining $14.2 billion.
Comptroller Hegar’s office estimates that nearly $16 billion of the estimated total will represent sales tax exemptions. This includes items taxable under other law, including insurance premiums, motor vehicle sales and motor fuels.
Other exemptions from the sales tax include $9 billion in raw materials used in manufacturing, $3.2 billion in food for home consumption and $1 billion worth of over-the-counter drugs and prescription medicines and devices.
To read the full report, visit this website.
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