NEWS RELEASE
From the Office of State Senator Rodney Ellis

For Immediate Release
June 3, 1999
Contact: Jeremy Warren, (512) 463-0113

Governor Bush Signs Consumer, Business Tax Cut Bill
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Governor signs Ellis Legislation providing $506 million tax cut for Texas families, business

HOUSTON// -- Senator Rodney Ellis (D-Houston) joined Governor George W. Bush at a bill signing ceremony today in Houston to enact historic tax relief legislation for Texas families and businesses.

Senate Bill 441 will expand the current tax exemption on prescription drugs to all over-the-counter medicines, create a 3-day sales tax holiday in August on shoes and clothing to help Texas families prepare for school, provide franchise tax credits to increase the availability of child care and create franchise tax incentives to strengthen small businesses and to cover a portion of research and development costs.

"This bill provides tax relief to Texas families when they need it the most," said Senator Ellis. "Exempting over the-counter drugs removes the tax penalty on families and persons on fixed incomes who rely on non-prescription medicine. The tax holiday will allow families with school-age children to better afford the clothing they need when school starts. The tax savings from this legislation could mean a free pair of khaki pants or blue jeans, a free dress shirt or a free month of medicine."

The legislation also provides a number of tax incentives for businesses providing child care and those who create jobs. "Senate Bill 441 rewards those businesses providing day care or before or after school care for their employees' children," Ellis stated. "Other provisions of this legislation assure that all Texans will benefit from the 21st century economy by offering franchise tax incentives to certain businesses locating in underserved areas."

SB 441 will:

"Senate Bill 441 was a comprehensive tax relief plan worked out between many members of the House and Senate. This legislation strikes a balance between providing responsible tax relief for Texas families and giving Texas businesses a boost to help create new jobs."

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