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Revenue projection Lowered for New Texas Business Tax

Austin, TX – The revenue projection for the state's new business tax has been lowered again, this time by about 1.5 billion dollars.

The state's chief revenue estimator -- John Heleman -- offered the update today in Austin to legislators.

State income from the newly revised business tax was expected to reach almost six billion dollars for the current fiscal year. But Heleman says the number will likely be closer to 4.5 billion dollars.

Heleman says it's a brand new tax with a different base and a different set of rates.

About half of the money is slated to go to the state's Property Tax Relief Fund.

The fund was created under a court order in 2006 to help school districts buy down property tax rates.

The new tax was intended to overhaul the state's old franchise tax, which critics said was full of loopholes.