Business tax cut heads to governor

A $2.6 billion business tax cut won final passage in the Texas Legislature Thursday.

The Texas House voted 133-10 to accept the Senate’s changes to House Bill 32, which will permanently cut the business franchise or “margins” tax by 25 percent across-theboard. The next stop for the bill is the desk of Gov. Greg Abbott, who is expected to sign it into law.

It is one of several components of a $3.8 billion compromise tax cut package that Abbott — along with House Speaker Joe Straus and Lt. Gov. Dan Patrick — announced a week ago that contains a mix of business and property tax relief. How to cut taxes had been the most high-profile disagreement between the House and Senate this legislative session.

The House and Senate have been negotiating the final component of the compromise tax cut package, Senate Bill 1, which would increase homestead exemptions on school property taxes from $15,000 to $25,000.