Business-tax cut makes Senate progress

AUSTIN – The Senate Finance Committee voted 8-2 on Wednesday for a nearly $2.6 billion, two-year cut in the state business tax.

The cut, already approved by the House, is part of an overall tax deal begin negotiated by House and Seante leaders that also would give a break to homeowners from the school property tax.

It next goes to the full Senate for consideration. If approved there, it will return to the House for consideration of Senate changes.

"For our economy to continue to thrive, for businesses to grow and for jobs to be created, we have to support our businesses," Senate Finance Chair Jane Nelson, R-Flower Mound, said in a statement.

The measure authored by House Ways and Means Committee Chair Dennis Bonnen, R-Angleton, would cut the business-tax rate by 25 percent.

The "no" votes came from Democratic Sens. Kirk Watson of Austin and John Whitmire of Houston. Whitmire changed his vote to "no" after the tally was announced.

House Bill 32 initially would have allowed the rate to be lowered further in the future. As passed by the Senate Finance Committee, it makes the 25 percent cut permanent.

Twitter: @pfikac

pfikac@express-news.net