The revision of the Texas franchise tax in 2007 will result in a $500-million decrease in tax revenues for the state this year, but the comptroller’s office is hopeful that 2010 receipts reported next year will be better.
Speaking to a Texas congressional committee, Mike Reissig, the associate deputy comptroller, said the franchise tax will bring in $3.8 billion for the fiscal year, according to the Dallas Morning News.
Last November, comptroller Susan Combs estimated the Texas franchise tax would bring in $4.3 billion.
The franchise tax revisions that were approved in 2006 were expected to generate $6 billion in revenue this year. However, the comptroller’s office now doesn’t expect revenues to exceed $5 billion within the next few years.
Yet Reissig was optimistic, noting that the data is based on receipts for 2009, which was considered the worst year. He estimates that 2010 receipts could be higher.
Though some Texans have floated the idea of increasing the franchise tax rate to make up for budget shortfalls, a possible increase in the gasoline tax appears to be a more likely scenario. Governor Rick Perry is adamantly against any tax increase.
