The Texas House today will go to work on a school finance plan that includes a quarter-cent increase in the state sales tax and a new state payroll tax that would replace the franchise tax now collected from businesses.
House Speaker Tom Craddick said the plan, which could undergo many changes as it moves from committee to the floor, also would include approval of video lottery terminals at racetracks and a dollar-per-pack increase in the cigarette tax.
The plan could become the starting point in the legislative battle during a special session called to cut property taxes and overhaul the school finance system. Craddick said much of the plan pitched by Gov. Rick Perry, which also included a $5-per-head fee on admissions to adult night clubs, is going nowhere in the House.
"They are just trying to move along and get a bill out," he said of House committee members who will meet this afternoon to discuss the plan. "And the governor's plan didn't have any kind of traction in committee, so we are looking at some alternatives."
Perry's plan includes the gambling and tobacco proposals.
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