Legislative Two-Step Dooms Texas TaxBill

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AUSTIN, Texas - (06/07/05) -- The state legislature adjourned lastweek with the House and Senate failing to reach agreement on a taxreform bill, thus ending the threat to the credit union taxexemption for another year. Gov. Rick Perry could decide to call aspecial session to forge agreement on a tax bill but the issue isexpected to carry over again to next year when the courts may forcelawmakers to pass a reform package to fund state aid to schools,according to Allison Castle, a spokesperson for the Texas CULeague. "We're fine, right now, both the Governor and lieutenantGovernor have vowed to support our tax exemption. So the situationis status quo," Castle told The Credit Union Journal. The taxexemption was threatened in the beginning of the 140-day sessionwhen lawmakers suggested closing loopholes and eliminatingexemptions, including the credit union exemption, to expand the taxbase, but that proposal was rejected by the House and wasn't evenconsidered by the Senate.

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