Texas State Representatives Unveil Sales Tax Holiday Bill
Texas Comptroller Glenn Hegar Supports House Bill 2694 for Economic Boost
(AUSTIN, TX) March 18, 2015 — The National Federation of Independent Business (NFIB)/Texas held a press conference today with Texas Comptroller Glenn Hegar, State Representative Angie Chen Button and State Representative Dwayne Bohac, to announce support for House Bill (HB) 2694 that will provide a one day only sales tax exemption for Small Business Saturday.
Held each year on the Saturday following Thanksgiving, Small Business Saturday is a day to support the local businesses that create jobs, boost the economy and preserve neighborhoods around the country.
“Small businesses are the driver of innovation and creativity in our economy, and play an essential role in ensuring our economy remains vibrant,” said Hegar. “This legislation will help the over two million small businesses in Texas create more jobs and increase revenue, further adding to the strength of the economy.”
A small business for the purposes of this tax holiday is defined as $5 million or less in taxable gross receipts. To enjoy this tax-free perk, consumers need only make a purchase within 24 hours, from 12:01 a.m. to 11:59 p.m. on Small Business Saturday, on any products bought in small businesses and the cap on the purchase amount is $5,000. If the purchase is initiated and completed on Small Business Saturday and it requires delivery, then orders must be processed within two weeks of the purchase to remain eligible.
“This is a significant act of support for small businesses by the Texas Legislature who has recognized that small business is the economic backbone of Texas,” said NFIB/Texas Legislative Director Annie Spilman. “For every $100 spent at locally-owned businesses, $68 stays in the local economy compared to only $43 if spent at a national chain.”
HB 2694 is joint authored by Representatives Button, Bohac, Sarah Davis, Marquez, and Parker. Several other legislators have signed on as co-authors. The bill does not articulate what items may be purchased at a small business, and it does not exclude any items from Small Business Saturday Sales Tax Holiday. However, items must be purchased from a qualified small business in order to be eligible.
For more information on HB 2694 click here!
