79TH LEGISLATURE: SPECIAL SESSION

Could Perry end up with business tax increase and no cut?

No such frets, Dewhurst advises

A lag in legislative momentum leaves open the ticklish prospect of Gov. Rick Perry signing into law a $3 billion business tax sitting on his desk without getting a school property tax cut along with it.

Perry remains hopeful that lawmakers will resolve the proposal mandating lower property tax rates, which is stalled in the Senate. Lt. Gov. David Dewhurst said Monday that Perry can sign the business tax, House Bill 3, without a fret.

"There's still time," Perry spokeswoman Kathy Walt said. "Things are going to be successful."

If the GOP-led Legislature fails to settle the tax cut before the session ends May 16, Perry will have 20 days after adjournment to weigh letting the business tax become law all by its lonesome.

Then again, Perry, a Republican seeking re-election, could veto the very business tax that he has championed. Possible reason: He isn't about to be a governor who signs in higher business taxes without cuts.

A veto might prove politically protective, but it could doom the tax for good.

Rep. Warren Chisum, R-Pampa, who steered the tax-cut mandate through the House, termed the prospect of Perry signing the increase without a cut "terrible," with the alternative being Perry calling a second 30-day session to get a tax-cut mandate lined up behind the business tax.

"I wouldn't advise him to sign (HB 3) right now. The clock hasn't run on it," Chisum said.