R-2386-3-05RESOLUTION NO. 2386-3-05(R)
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS, ENDORSING CERTAIN LEGISLATIVE CHANGES TO HOUSE
BILL 3; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, a pro-business environment is essential to attracting and retaining business and jobs in Texas, and
consequently in Collin County and in the City of Allen; and,
WHEREAS, a payroll tux for all forms of businesses that have employees, including sole proprietorships, of 1.1 %
up to $80,000 per year per employee has been included in House Bill 3, a bill to provide property tax relief while
providing more money for education in the State of Texas; and,
WHEREAS, payroll taxes have proven damaging to businesses, employees and citizens— increasing the cost of
doing business, reducing employment, depressing wages, reducing economic competitiveness, and obstructing
economic growth; and,
WHEREAS, in a study conducted by the Beacon Hill Institute, the consequences of the implementation of a 1.25
percent payroll tax in Texas with the maximum tax amount per employee of $500 would result in the loss of
between 62,000 and 71,000 jobs and the tax would reduce average wages by 0.3% and reduce real disposable
income by 0.4% and the tax would slow down the investment and economic growth in Texas; and,
WHEREAS, the proposed payroll tax in House Bill 3 will drive companies already located in Texas to move jobs
to other states that do not have payroll taxes and the hit our economy will suffer from the job loss will be far more
' significant that the small gains that may be made to the state coffers as a result of this new tax.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, THAT:
SECTION 1. While the Allen City Council applauds the efforts of the legislature to find an alternate school
finance system to provide property tax relief while allocating more money for education, we oppose any bill that
includes a tax on payroll.
SECTION 2. A copy of the resolution shall be sent to the elected lawmakers representing the City's interests in
the Texas House and Senate.
SECTION 3. This resolution shall take effect immediately upon its passage.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY, TEXAS ON THIS THE 22ND DAY OF MARCH, 2005.
APPROVED- /)
tephen Terrell, Mayor
' ATTEST:
Shelley B. Georg , RMC, CITY SECRETARY