HOUSE PASSES PROPERTY TAX CUT
The House approved a new business tax Monday, part of Gov. Rick Perry's plan to cut school property taxes by about one-third. The plan would provide no new money for schools, though.
Lawmakers also overwhelmingly approved a property tax cut that they said would ensure that schools stay open this year, the "Get outta Dodge" plan (if you can call it that, I call it a cop out).
The measures that were approved now go to the Senate, which could take them up later this week.
The passage of the tax proposals, with some money from the state surplus (which is $8 billion), is designed to pay for about $6 billion a year in school property tax cuts, or enough to reduce a school district's tax rate for operations by about one-third.
About 50,000 businesses that have avoided the corporate franchise tax, often because they are organized as limited liability partnerships, would have to pay the new tax.
As previously mentioned, the House members overwhelmingly approved a "get outta Dodge" bill that would temporarily repair the school funding system. The measure, passed by a vote of 139-5, calls for an 11 percent reduction in local school property tax rates this year – about 17 cents per $100 of assessed valuation for districts that are taxing at the current maximum rate, $1.50. This would only go into effect if they cannot reach another deal before the Court mandated date of May 31.
Stay tuned, the House and Senate typically do not agree with each other!!
Wes
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