Senate Bill Protects TexasCUs
AUSTIN, Texas - (05/04/05) -- The state Senate has introduced itsown business tax reform bill that would continue to retain thecredit union exemption, but the prospects for the bill, whichvaries greatly with one passed by the House last month, remainclouded. "All the entities that are exempt in our franchise taxcode now are exempt (in the Senate proposal) and that includes us,"Buddy Gill, chief lobbyist for the Texas CU League, told The CreditUnion Journal of the 166-page bill introduced in the Senate FinanceCommittee. But the possibility remains that this year's legislativesession could expire at the end of May without a bill being passedbecause of major disagreements between the Senate and House on thedetails of a reform. "The House has no interest in this bill," Gillasserted. The House last month narrowly passed a bill that wouldgive all businesses, except for credit unions and other exemptentities, the choice of paying the franchise tax or a tax onpayrolls. If a tax bill is not passed this year credit unions wouldretain their tax exemption, but would probably face a renewed taxfight in next year's legislature, he noted.