March 25 marked the “Beginning of the End of the Franchise Tax” when the Texas Senate passed the tax relief package SB 1, SJR 1, SB 7, and SB 8. This package of bills directly addresses small business owners and homeowners alike. Texas Senators Charles Schwertner and Jane Nelson along with Lt. Governor Dan Patrick took the lead on this initiative by filing the bills and defending them against big business opposition.
On April 8 Texas House Representatives Chairmen Dennis Bonnen and Jim Murphy hosted a press conference that unveiled a tax relief package of HB 31 and HB 32. The bills include a permanent reduction of the franchise tax by 25 percent across the board and an EZ calculation for businesses under $20 million.
“Our position has always been to support the repeal and/or reduction of the franchise tax and this focus has been driven by the 82 percent of our independent business owner members surveyed before this session began,” said Will Newton, NFIB/Texas Executive Director. “In today’s press conference Chairman Bonnen stated that this package marks the path to elimination for the franchise tax and while we support tax relief on a broad scale we have continued to champion for a full repeal. The franchise tax negatively impacts small business disproportionally from other types of business in cost of compliance and the pyramiding effect this has combined with other business taxes. We have applauded the Senate’s efforts to reduce the franchise tax and applaud the House, as this remains the most onerous tax in Texas for small businesses.”
Governor Greg Abbott also renewed his commitment to eliminating the franchise tax with a press conference on April 15, 2015.
Please take a moment to thank these leaders for this feat for small business via phone, email, fax, or social media. To read more about these bills and their impact click here.
