Texas Tax Bill Would Raise Rental Sales Tax

AUSTIN, Texas -– The Texas House has passed a $10.8 billion tax restructuring bill that would raise the sales tax from 6.25% to 7.35% for car rentals exceeding 30 days. The bill also seeks to impose a 7.25% sales tax on vehicle repair and wash services, among other items including bottled water.

The House passed the bill on a 73-68 vote. The legislation, part of a larger plan to reduce property taxes and change how Texas funds public schools, now goes to the Senate.

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