School District Tax Alternatives
(HCS for House Bill
381)
September 1, 2003 Update
This bill did not pass in the 2003
Legislative Session. There was no further action on the bill
after the House committee action on March 20. A Joint Interim
Committee on Education was appointed to examine education funding.
Look for information on committee members and the committee's
mission on the Senate web site.
Update: April 14, 2003
House Bill co-sponsors are: Holand, Davis
(#22), Dixon, Bough, Avery. The bill, as amended in committee,
allows school districts to adopt by a 4/7 majority voter approval
a surcharge on personal income tax. Money raised by the tax would
NOT be deducted from a district's state school aid. For either
tax, the school district must specify the purpose of the tax,
and how long the tax would be imposed, not to exceed 3 years.
The income tax surcharge may be levied in 1 percent increments.
The income tax may also be used for property tax reduction, in
which case it may run up to 5 years. Committee action removed
the original bill's authorization for school districts to levy
a sales tax.
The bill was voted "Do Pass" on March 20 by the House Tax Policy committee. As of April 14, 2003 the bill has not yet been reported to the full House for debate and vote. An attempt will be made on the House floor to restore the authorization for a sales tax to the bill. This authorization was deleted in the original bill by committee action.
MTJ supported a similar bill last year (HB 1292), as passed by the House without the authorization for the sales tax.
MTJ believes this is an important bill because using a surcharge on income tax to replace regressive property tax would be a major breakthrough in giving local governments a progressive way to raise needed revenue.
The House Tax Policy held a hearing on this bill on February 25. MTJ presented testimony in favor of the bill at the hearing on February 25, but with opposition to the sales tax authorization.
ACTION NEEDED: Contacts to House Speaker
Hanaway and to Rep. Shannon Cooper, the committee chairman, asking
that the bill be reported to the full House. Speaker Hanaway
and all representatives should be asked to oppose any amendment
that would restore the authorization for a sales tax, and to
support the bill without that provision.
Go
to: House Tax Policy Committee