TEXAS UPDATE SPECIAL EDITION

By CHAMBERLAIN McHANEY

TEXAS LAWYERS

     Texas Supreme Court Rules in School Finance Case:    As many of you are painfully aware, Texas ranks high among the states with the biggest taxes on property.  This morning, the Texas Supreme Court issued its ruling in the Texas school finance case, finding that local ad valorem (property) taxes capped at $1.50 per $100 valuation constitute a state property tax prohibited by Constitution Article VIII, Section 1-E.  The court mandated a June 1, 2006 deadline for state lawmakers to remedy the issue (otherwise school is out forever!)

    This decision will force the Texas Legislature back into special session (which essentially means the barbarians are now at the village gate).  Frankly, everything is on the table at this point, including a first ever Texas state income tax and expanded sales taxes.  Heck, we might even get casino gambling!  As always, Texas Update will be on top of it. 

    Justice Hecht delivered the opinion of the Court today,  joined by Chief Justice Jefferson, Justice O'Neill, Justice Wainwright, Justice Medina, Justice Green, and Justice Johnson. Justice Brister delivered a dissenting opinion.  Justice Willett did not participate in the decision.

     Chamberlain McHaney is an AV (highest rated) firm and is listed in Best’s Directory of Recommended Insurance Attorneys.

David E. Chamberlain

Chamberlain McHaney

Austin & San Antonio

512.474.9124