Texas Senate Will Support New Tax Measure for Schools

Albanese, Elizabeth
May 2003
Bond Buyer;5/2/2003, Vol. 344 Issue 31627, p4
Trade Publication
Texas Governor David Dewhurst has secured commitments from every member of the Senate on April 30, 2003 that they would vote for a measure to change the way the state finances public education by changing a tax code that places the responsibility for funding directly on property owners. Dewhurst's plan, SB 2, calls for an increase of the state's 6.25-cent sales tax to 7.85 cents, in addition to an expansion of that tax to nearly every good or service provided in the state, with the exception of medical supplies or services. The tax would replace about half of the funds currently levied with local property taxes, and the current tax capitalization of 1.50 dollars per 100 dollars of assessed valuation would drop to 75 cents per 100 dollars. However, there are apprehensions whether the House of Representatives will vote for SB2. Some members say they they want more options before giving approval to any one plan.


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