School funding models during special session exclude firearms

Tax increases on the sale of firearms and ammunition escaped the spotlight during the recent special session of the Texas Legislature, as lawmakers considered a myriad of tax plans to revamp the state’s school finance system and cut property taxes. At no time during the special session did the legislature propose to increase the sales tax on firearms or ammunition. Gov. Perry called the legislature back to Austin on April 19 for the fourth special session less than a year. Thirty days later, legislators went home empty-handed.

“It was clear from the start of the special session there was no consensus among the members of the Legislature on how to resolve this issue,” said TGDA executive director, Scott Pospisil. “To cut property taxes and increase school spending requires the Legislature to raise taxes or developing new revenue sources. That’s a difficult task to accomplish in a 30-day session.”

During the special session, the House considered numerous plans, all of which proposed increases in the state’s sale tax on the purchase of items such as automobiles, boats, cigarettes, mixed drinks, billboards, and even bottled water. Firearms and ammunition were never included in any tax model presented in the House. At one time, the House plan proposed to remove all sales tax exemptions on services such as attorney and lobbying fees. The measure lasted less than 24-hours. In the end, the House passed a “shell” tax bill and sent it to the Senate, where it die a quick death.

At the heart of the political debate was whether the state should allow video lottery machines that would generate an estimated $3 billion in new revenue for the state. None of the property tax relief proposals considered during the session was feasible without the new revenues that would be derived from video lottery at the state’s seven horse racing tracks. Passage of a constitutional amendment allowing this new phase of gambling into the state required 100 votes in the House. It only received 80. Without this additional revenue, the Senate refused to consider the House bill, and the session ended.

Another Special Session In August?

Perry said that he intends to continue actively negotiating with legislators of both parties to come to a bipartisan agreement on a solution. The question is whether he will make another attempt to resolve this political hotcake before the November elections. It was widely rumored at the end of the last special session that the Governor would call another in August. Now, indications are that will not happen as the leadership in both houses is no closer to building a consensus on the issue than it was a few months ago. It appears now the matter will not be addressed until the Legislature convenes in Austin for its regular session next January.

“I am committed to spending whatever time it takes to address this issue,” said Gov. Perry. “However, I also recognize that it is more important to get this issue right than to get it right away.”