Insider's Report Vol. 7, No. 8
On Thursday, I filed House Bill 2534 to provide much-needed margins tax relief to small business owners by raising the small business tax exemption. My legislation would exempt small businesses with total revenue of $5 million or less from paying the state margins tax. Currently, only businesses with total revenue of $300,000 or less are exempt.
Given the current climate of our economy, I feel it is vital for the Legislature to protect our small businesses, which serve as the backbone of our communities. Small businesses comprise over ninety-eight percent of all business in Texas. They are responsible for creating more than two-thirds of all new jobs in Texas over the last twenty years. In a time where fraud, irresponsible management, bankruptcy, and federal bail-out requests are riddling the corporate world, we can depend on our small business owners to help grow our economy and make it strong again.
My decision to file this legislation is a continuation of my efforts over the past several years to ensure that the small business exemption was increased. During the 2006 school finance special session, I proposed raising the small business exemption ceiling to $1 million. In the 2007 session, I filed similar legislation that would have exempted businesses with no more than $750,000 in total revenue from the franchise tax.
In recognition of the tremendous value small businesses bring to our communities, I am proud to carry this legislation on their behalf.