TEXAS TAX ALERT! State Senate Passed Pay Roll Taxes In the Middle of the Night!

Texas Freepers, We are starting to get the word here in the North Texas area that the State Senate passed their version of the House bill, including a Pay Roll tax provision, this morning.

That's right, they snuck it through in the middle of the night. A typical tactic used by many crooks.

They made the Pay Roll tax, which is just a backdoor state income tax, "optional". Which likely means that is is not actually "optional.

This will just give them an opening to make the pay roll tax mandatory in the next session.

There is hope that some groups will file law suits against the pay roll tax as unconstitutional, but that is not known for sure.

If what was reported on the radio is correct, the claims that Texans would benefit from property tax reductions seems shady at best.

They mentioned that on a 100,000 dollar home, after homestead exemptions and the other usual deductions, the property owner's savings would be $350.

COMPARE THAT $350 in savings to the TAX INCREASES they passed. At years end, the Texas taxpayer will likely pay more then he/she did in the past! The tax increases will likely be more than the property tax reduction.

The State Senate Republicans (RINOs) seem to be touting that they removed the proposed State Property Tax from the bill.

HOWEVER, it is worth mentioning again that radio reports are indicating that the reduction of property taxes that would result from the legislation may be less than the amount of tax increases that state taxpayers will have to shell out.

It is now time to focus on Calling and Writing the Governor and warn him that he will not get a single vote if he does not do one of two things:

Either veto the legislation, as he said he would do with a job killing legislation, or warn the joint committee to pull the pay roll tax option in order to avoid veto.

I will look for news articles and post them on this thread. I just thought it would be good to get the word out as soon as possible.

Deport had posted this on another thread. I did not see it.

So credit is due to Deport for finding the article-

http://www.freerepublic.com/focus/f-news/1400228/posts?page=68#68

79th LEGISLATURE

HB3 passes without statewide property tax
Senate also includes sales-tax holiday, options on business tax.
By Jason Embry
AMERICAN-STATESMAN STAFF
Wednesday, May 11, 2005
The Senate at about 2 a.m. today approved a major shift in state taxes, but only after changing two key components of the bill.

Senators approved House Bill 3, which cuts school property taxes while raising consumption and business taxes with a 21-10 vote. Today they’ll take up the second half of school finance reform, House Bill 2, which rewrites the formulas used to determine school funding, increases teacher pay and toughens regulations on charter schools.

The vote on the tax bill came after the Senate abandoned its long-held plan to replace the local property tax for schools with a statewide property tax. Lt. Gov. David Dewhurst and key senators described the state levy as the best way to ensure funding in the school funding system, but it ran into resistance with school groups and lawmakers who said it would take power away from school boards and only exacerbate the share-the-wealth nature of the current funding system.

Senators also scrapped their plans for a 4 percent corporate franchise tax on a business’ net income plus 25 percent of its payroll.

Under a change that senators approved during a lengthy debate Tuesday, companies will have two options. The first option will be to pay a franchise tax of 2.5 percent on net taxable income plus either half their payroll or all of their payroll, with the first $30,000 in salary for each employee exempt from the tax. The second option would be to pay a 1.75 percent payroll tax capped at $1,500 per employee.

The bill also increases the state sales tax over two years from 6.25 percent to 6.75 percent, boost the cigarette tax from 41 cents per pack to $1.16 and increases by 25 percent alcohol excise taxes and gross receipts taxes for bars and restaurants that serve hard liquor.

The tax increases will pay for a 23 percent reduction over two years in the maximum property tax rate for school maintenance and operations.

One change made on the floor should be popular with shoppers: The Senate voted to make the first weekend in December a sales-tax holiday, meaning there will be no state sales taxes charged on clothing and footwear bought that weekend as long as the items cost $100 or less. The tax holiday would resemble the one now in place before the start of school in August.

Of course, that provision and others still must survive a House-Senate conference committee.

In addition to the tax changes, the bill increases school funding by about $3 billion over two years with the help of some one-time revenue moves, such as tapping money from the state’s 1998 settlement with tobacco companies.

“With the passage of this bill we can tell Texans their property taxes are going to be lower, their schools are going to be better,” said Sen. Steve Ogden, R-Bryan.

Senators voted to give smaller property tax cuts than proposed, saying that in 2007, the maximum school property tax rate would be $1.15 per $100 in assessed property value instead of $1.10. Local voters could decide to set a slightly higher rate.

The maximum rate is now $1.50 per $100 in property value.

The removal of the state property tax eliminates a major barrier standing between the Senate and House, whose members are trying to agree on a new funding system for schools before the legislative session ends May 30.

Since the session began Jan. 11, Dewhurst and key senators had touted the state property tax as the fairest way to pay for education and the best way to protect the state from the school finance lawsuits that have dogged the system for decades.

The plan called for the Legislature to set the school property tax rate and for local collectors to gather payments from property owners and send them to the state, which would then distribute the money to school districts.

But the House steered clear of the state tax when it approved a pair of school finance bills in March, and some school groups vehemently opposed the Senate's movement toward the state levy.

Their arguments that it would take control away from locally elected school boards caught on with roughly half the Senate, more than enough to kill an idea in a chamber that requires a two-thirds vote to bring up a bill up for debate.

"We believed it was the best way to get out of the courts, at least on that issue," said Senate Education Committee Chairwoman Florence Shapiro, R-Plano. "But we don't seem to be able to garner enough support for it."

District Judge John Dietz ruled last year that the state system violated the constitutional ban on a state property tax, saying districts had little choice but to levy the maximum local rate because there was not enough state money in the system.

Dietz ordered the Legislature to enact a new system by Oct. 1, but his ruling is under review by the Texas Supreme Court.

Dewhurst and his lieutenants hoped to fix the problems by switching to the state tax, but to do so would have required a two-thirds vote in the House and Senate and a simple majority of the voting public.

With school officials opposed to the plan and voters unclear about its ramifications, its prospects were uncertain.

Shapiro said voters often confuse the idea of a statewide property tax with the politically unpopular idea of a personal income tax.

"If the superintendents and the school districts don't want it, it would be really hard to convince the general public that it's the right thing to do," she said, "even though it is the right thing to do."

The opposition to the state property tax picked up steam Friday, when Sen. Jane Nelson, R-Lewisville, declared that it would cause the "destruction" of public education in Texas.

Tuesday afternoon, Sen. John Carona, R-Dallas, said that he and at least a third of the Senate made it clear they would not vote to consider a bill that included the state tax.

"A statewide property tax has the potential to tie the hands of local school boards," Carona said. "It will result in less long-term funding for our schools."

Once senators removed the state property tax, the tax bill called for the maximum school property tax rate to go from $1.50 per $100 in property value to $1.30 this fall. Then, in fall 2007, the rate would fall to $1.15.

It's time to send folks like Mary Denny and Burt Solomons packing.

If I find out the Senator Chris Harris voted for this crap....I will help campaign against him. Whether the Gov. vetos is or not.

Last December....and a North Texas area event....I straight out asked Solomons if they had actually looked at cutting the waste type spending....

The gutless little lawyer rino would not answer the question. He just danced around it. "We have tough decisions...blah..blah...blah"

Then the sniveling little crap bag had to nerve to say.....that somewhere down the road....in 10 or 20 years....we'll have to look have the idea of a state income tax.

Of course....he is all connected with Denton County Commissioner Sandy Jacobs and Ron Marchant. So his RINO strings are more like ropes. Ole Sandy is a crook.....who is constantly busted for lying in Commissioner's court. Heck...its on record.

She recently lied on public record (commissioner's court transcript) trying to advocate Denton County wasting money on another economic developement director....when the cities already have one. She claimed that places like Little Elm do not have economic developement directors or chanbers of commerce.

Well...at the Grand Opening of a new store....I saw both.

So I am not shocked the Rep Solomons is like he is.

Contact the Governor by Mail or Telephone

Telephone

Citizen's Assistance Hotline: (800) 843-5789
[for Texas callers]
Citizen's Opinion Hotline: (800) 252-9600
[for Texas callers]
Citizen's Assistance and Opinion Hotline: (512) 463-1782
[for Austin, Texas and out-of-state callers]
Office of the Governor Main Switchboard: (512) 463-2000
[office hours are 7:30 a.m. to 6:00 p.m. CST]
Citizen's Assistance Telecommunications Device
If you are using a telecommunication device for the deaf (TDD), call 711 to reach Relay Texas

Fax

Office of the Governor Fax: (512) 463-1849

Mailing Address

Office of the Governor
P.O. Box 12428
Austin, Texas 78711-2428
Delivery Address

Office of the Governor
State Insurance Building
1100 San Jacinto
Austin, Texas 78701

Thanks. :)
HERE is the link to email Rick Perry.
And here is my note to him:

My Dear Governor Perry,
This concerns HB 3, the massive tax increase that is being rammed through the legislature. I am SEVERELY disappointed at the Republicans in this state for even entertaining this abomination. I can not say strongly enough that I am opposed to any new taxes on the hard working people of Taxes (Note the new spelling ot out state name, it now fits.) We need tax relief and a property appraisal cap, NOT a bunch of new taxes. I hope that you will veto this and all other new taxes that hit your desk.
Please take note, Mr. Governor. I have voted straight ticket GOP for many years, so every time you ran for statewide office, you ALWAYS got my vote. However, if you sign this bill, you will leave me no choice but to support any GOP challenger in the next Primary race for Governor of Texas. I am serious about this, too, so please heed my wishes (and the wishes of many other conservative Republican voters here in Texas).
Sincerely,
[MeekOneGOP]

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