07/07/2008
This May, the Texas office of the National Federation of Independent Business announced the creation of the Texas Business Tax Coalition, a group of like-minded state business organizations* joining forces to advance a legislative agenda that will make the new Texas Margins Tax less onerous on small business owners across the state.
The Texas Business Tax Coalition founding members include NFIB/Texas, the Independent Electrical Contractors of Texas, the Air Conditioning Contractors of America Texas Chapter, the Associated Plumbing-Heating-Cooling Contractors of Texas, and the Texas Courier and Logistics Association.
The new coalition is calling for a handful of reforms that will significantly reduce the impact of this burdensome tax on the small business owner. Items on the coalition's legislative agenda include:
- Exempt from state tax liability small businesses that are losing money or are marginally profitable;
- Raise the small business exemption from $300,000 to a minimum of $1 million;
- Lower the margins tax rate by 50 percent for businesses with under $20 million in gross receipts;
- Allow deductions in their cost of employment for all contract labor used by Texas firms;
- Limit a business' increase under the margins tax to no more than 100 percent of its historic high under the old franchise tax; and
- Require a two-thirds vote of the Legislature before the margins tax rate can be increased.
*If you belong to a trade or industry association that may be interested in working with our coalition to reform this new business tax, please contact NFIB/Texas at 512-476-9847 or e-mail laura.stromberg@nfib.org for more information.
