Legislative Update

YOU JUST HAD TO BE THERE

Yesterday and the wee hours of today were a lesson in politics few citizens ever see or hear about. While being touted by Speaker Craddick as Bi-Partisan there really appeared to be an in-your-face attitude throughout the 15+ hours of debate.
The business tax code was amended to add about 50,000 business to the tax roll that is anticipated to bring in over three billion $$ a year. No deduction for salaries would be allowed for companies that hire illegal aliens. Surprisingly this passed with only one no vote.
Property tax cuts amounted to about 11% of the 2005 tax rate but districts could increase that amount by $0.03 per year, or more with voter approval. Over two billion $$ from the rainy day fund would be used to help effect the cut. I heard nothing said about limiting the appraisal increases but will check out the final Bill when it is published.
Apparently in anticipation of the cut, Austin has just increased it’s property appraisals by about 12 %. One of the most contentious parts of this Bill was that the Secretary of State would send out a letter to the taxing entities to be put in with the new tax bills showing the amount of savings given by this special session. The question was asked if the letter would also show the tax increases that made the cut possible and the answer was no. It was pointed out that this letter should come under the auspices of the Comptroller. The Secretary of State is appointed by the governor so the question was asked if the SOS would write this letter or would it be written and handed to him. Many saw this as a last minute Campaign message sent out by the governor at taxpayer’s expense.
Another tax increase would require that the purchase of a vehicle be taxed at 80% of Blue Book value.
By about 2:00 am four of the five Bills had been passed with the cigarette tax being returned to committee to meet legislative intent. Upon adjournment it came back out of committee as originally written and will be passed today.
All five Bills must now go to the Senate where they will be rewritten to please them. It is usual that House Bills are changed in the Senate and go back to the House for acceptance. The House of course does not accept the changes and the Bills then go to Conference Committee where both houses compromise and they then go back to each house for passage .
IT AIN’T OVER YET BY A LONG SHOT.
sPUTNIK