Funding, Interest Groups, Elections, and the Role Between State and Local Governments in Texas
Running Head: TEXAS GOVERNMENT
Funding, Interest Groups, Elections, and the Role Between State and Local Governments in Texas
Maurice Adams
Mr. George Lyon
POL215
University of Phoenix
Funding, Interest Groups, Elections, and the Role Between State and Local Governments in Texas The state of Texas receives the majority of funding from two sources; taxes and federal receipts. “Currently, Texas is one of nine states that does not levy a personal income tax on its residents and, in addition, its property tax system is a function of local governments. This makes Texas somewhat unique, in that, its state government largely relies on revenue generated from sales taxes and a business tax.” (Texas Public Policy Foundation, 2012) For the 2010-2011 biennium, 43.1 percent of Texas’s revenue was generated through taxes and 37.3 percent was generated through federal receipts.
Texas’ current “sales tax rate is 8.25 percent and is imposed on all retail sales, leases and rentals of goods purchased in the state, and taxable services. There are a handful of goods and services exempt from taxation, including food for home consumption, over the counter medicine, as well as legal and medical services.” (Texas Public Policy Foundation, 2012) Texas also has a franchise tax, which is “a levy on doing business in the state of Texas. Businesses that earn more than the threshold of revenue set by the Texas Legislature are required to pay a one percent tax on the smallest value of either: 70 percent of total revenue, total revenue minus cost of goods sold, or total revenue minus total compensation plus benefits.” (Texas Public Policy Foundation, 2012) Other taxes generating income for the state include motor fuel taxes, motor vehicle sales and rental taxes, cigarette and tobacco taxes, insurance occupation taxes natural gas production tax, oil production taxes, alcoholic beverage taxes, utility taxes, hotel occupancy tax, and other miscellaneous taxes that include levies on
Funding, Interest Groups, Elections, and the Role Between State and Local Governments in Texas
Maurice Adams
Mr. George Lyon
POL215
University of Phoenix
Funding, Interest Groups, Elections, and the Role Between State and Local Governments in Texas The state of Texas receives the majority of funding from two sources; taxes and federal receipts. “Currently, Texas is one of nine states that does not levy a personal income tax on its residents and, in addition, its property tax system is a function of local governments. This makes Texas somewhat unique, in that, its state government largely relies on revenue generated from sales taxes and a business tax.” (Texas Public Policy Foundation, 2012) For the 2010-2011 biennium, 43.1 percent of Texas’s revenue was generated through taxes and 37.3 percent was generated through federal receipts.
Texas’ current “sales tax rate is 8.25 percent and is imposed on all retail sales, leases and rentals of goods purchased in the state, and taxable services. There are a handful of goods and services exempt from taxation, including food for home consumption, over the counter medicine, as well as legal and medical services.” (Texas Public Policy Foundation, 2012) Texas also has a franchise tax, which is “a levy on doing business in the state of Texas. Businesses that earn more than the threshold of revenue set by the Texas Legislature are required to pay a one percent tax on the smallest value of either: 70 percent of total revenue, total revenue minus cost of goods sold, or total revenue minus total compensation plus benefits.” (Texas Public Policy Foundation, 2012) Other taxes generating income for the state include motor fuel taxes, motor vehicle sales and rental taxes, cigarette and tobacco taxes, insurance occupation taxes natural gas production tax, oil production taxes, alcoholic beverage taxes, utility taxes, hotel occupancy tax, and other miscellaneous taxes that include levies on
Cited: About TexPIRG. (n.d.). Retrieved September 26, 2012, from TexPIRG: Standing Up to Powerful Interests: http://www.texpirg.org/page/txp/about Definitions of Key Terms. (n.d.). Retrieved September 26, 2012, from State of Alaska Budget: http://omb.alaska.gov/ombfiles/02_budget/Glossary/EBSGlossary.html Liberal Arts Instructional Technology Services. (2009). Texas Politics. University of Texas at Austin. Our Mission. (2009-2012). Retrieved September 15, 2012, from NAACP: http://www.naacp.org/pages/our-mission Texas Public Policy Foundation. (2012). Where the Money Comes from. Retrieved September 26, 2012, from Texas Budget Source: http://www.texasbudgetsource.com/budget/state/where-the-money-comes-from University of Texas at Austin. (2009). Voting, Campaigns and Elections. Retrieved September 26, 2012, from Texas Politics: http://texaspolitics.laits.utexas.edu/6_printable.html#20