Texas Votes Again On New TaxScheme

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AUSTIN, Texas - (04/26/06) – The state House Tuesday infavor of a bill that swaps the current franchise tax in favor of anew business "Gross Margins" tax, continuing to preserve the creditunion exemption from state taxes. The legislation as passed wouldpreserve the not-for-profit income tax exemption state-charteredcredit unions have now under the existing franchise tax. “Weare pleased with the bi-partisan vote in the House yesterdaytowards meaningful property tax relief for millions of Texas creditunion members and that protects credit unions,” said BuddyGill, chief lobbyist for the Texas CU League. The bill is one offive that make up the tax reform plan proposed by the Texas TaxReform Commission. These bills, if enacted into law, couldultimately shift the way Texas funds public schools. The SenateFinance Committee will consider the House-passed version of the taxbill in the next few days. The state legislation is in the secondweek of a 30-day special session aimed at resolving the taxissue.

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