Texas Tax Exemptions Cost Billions

A new report released Monday shows certain tax exemptions cost Texas billions. Even so, Gov. Rick Perry and Republic leaders vowed to oppose any move to eliminate them, saying to do so would amount to a tax increase, the Star-Telegram reports.

State Comptroller Susan Combs issued a report that showed exemptions from sales, franchise, gasoline and motor vehicle sales taxes for the 2011 fiscal year amounted to about $32 billion. Some lawmakers have proposed getting rid of some of those exemptions as a way to boost revenue while Texas is dealing with a multibillion budget shortfall.

State Rep. Harvey Hilderbran, a Kerrville Republican and chairman of the tax-writing Ways and Means Committee, says most lawmakers have no interest in broadening the sales tax base. However, he said some members of his committee are introducing bills suggesting ways to generate revenue by closing loopholes and improving efficiency.

Combs submitted the report to Perry and members of the legislature but made no recommendations.