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Friday, April 25, 1997

House debates tax plan

By JUAN B. ELIZONDO Jr.

Associated Press Writer

AUSTIN (AP) - Debate on a proposed overhaul of the state tax system shifted gears Thursday as the Texas House approved limits on property appraisals and a reconstruction of how property values are determined.

The pending tax plan would lower local school property taxes by about 50 percent. It would pay for the cuts by expanding the state business tax, adding to the number of goods and services subject to the state sales tax and dedicated $1.3 billion in additional state funds for education.

The tax cuts - combined with the new and expanded state taxes - would amount to a 2 percent local and state tax cut for most Texans. Wealthier residents would get a slightly bigger cut than middle class Texans.

Lawmakers concerned with the plan have said reform of property appraisals is needed to ensure that any savings from the plan aren't lost.

Rep. Kenny Marchant, R-Carrollton, added a new provision to the proposal to limit residential property appraisals to no more than once every three years. Property values could go up only by 5 percent each year for a total possible increased value of 15 percent every three years.

"They can go in and raise your value every year right now," Marchant argued before his amendment was adopted.

Rep. Paul Sadler, D-Henderson, chairman of the committee that wrote the tax plan, said he also wants property appraisals to be changed. But he suggested that such changes be done in a separate bill. He said the House hadn't gotten enough public input on the proposal.

"There are consequences to appraisal reform," he said, adding that those results couldn't be known without public hearings.

The Senate earlier this week approved an appraisal limit bill. That has not yet been considered in a House committee.

Debate on the bill comes after a long night Wednesday in which the Texas House haggled over and then approved the constitutional amendment allowing the changes proposed in the bill. Sections of the bill would not be allowed without the proposed constitutional amendment.

Most debate fizzled Thursday over issues expected to draw heated arguments, like public funds going to private schools.

One so-called school voucher program was rejected after little debate and others were not even considered.

"It's may, may, may," Rep. Jim Horn, R-Denton, sponsor of a school voucher amendment argued. "Everyone must agree or they may not provide the program."

The program would have allowed public schools to offer the private school vouchers to students who wanted to transfer. Any public funds that would have paid for the student's public school education would follow the student except for $1,000 that would remain with the public school and $1,000 that would go back to the state.

"It looks to me like this sets up a real nice incentive to take children that might be difficult to education, find a (private) school that will take part of the money and on down the road we go," said Rep. Scott Hochberg, D-Houston.

More than 100 amendments to the bill remained pending. Some would increase the overall plan, while others would reduce it.

Sadler on Wednesday said he expects fights. But he added that in the end, the House will agree to a proposal lowering local school taxes and providing a more stable source of funds for schools.

Meanwhile, Lt. Gov. Bob Bullock said Thursday the Senate was likely to make changes in the consitutional amendment approved by the House, thus requiring a conference committee of House and Senate members to work out differences.

"What will be crafted in the Senate will reflect the will of the majority - a political and perhaps philosophical majority - that is different than the House," Bullock said. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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