The Texas House of Representatives rejected amendments to a school funding bill passed by the Senate and backed by Lt. Gov. David Dewhurst that would increase and expand the state sales tax in exchange for lower local school property taxes. The bill would modify the sales tax structure to include commissions and attorney’s fees, which previously have not been subject to sales tax.
Dewhurst’s school finance plan, which included a tax on services, would have eliminated the current share-the-wealth school finance system and put an extra $1.2 billion into schools over the next two year.
According to the Independent Insurance Agents of Texas, the definition of “services” as included in Article 4 of the bill defines a service as an “activity engaged in for another person for a fee, retainer, commission, or other monetary charge and that predominately involves the performance of a service as distinguished from the sale or use of tangible personal property.”
The IIAT believes that the inclusion of the word “commission” indicates the tax applies to commissions received by independent insurance agents. The language in the bill also applies to services provided by attorneys.
Medical and dental services, deemed to be essential, are the only services not taxed in under the bills provisions.
It now appears unlikely that the bill will pass in the current session. Not only are Dewhurst and House Speaker Tom Craddick at odds over the legislation, 53 Democratic representatives have staged a walkout in order to block a vote on a congressional redistricting plan pushed by Republicans. The Democrats plan to stay absent, not only from the floor of the House, but from the state itself until after the deadline for considering the redistricting bill passes.
Until the Democrats return, work on any bills in the House is stalled.
According to the Austin American Statesman, House Speaker Tom Craddick, R-Midland, ordered the Department of Public Safety to go looking for the missing members. Many are thought to have fled to Oklahoma and New Mexico. The DPS, which has the authority to arrest the missing House members while they are within Texas borders, has no jurisdiction in other states.
Topics Texas
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