“Homestead exemptions are to be applauded but, the Legislature must bury the inventory tax now.”
MCALLEN (May 26, 2023) – In an op-ed for the Rio Grande Guardian, NFIB member and small business owner John Kreidler urges the Texas Legislature to deliver meaningful inventory tax relief for Main Street businesses.
As one of the last independent funeral homes in the Valley, Kreidler writes:
“Heck, we’re paying taxes on the pews that have been in our chapel since 1961. Think of what sixty-two years’ worth of tax money could go toward. […]
“Just as a funeral brings closure for a family in mourning, tax relief can breathe new life into struggling small businesses. This shouldn’t be too difficult, given that our state is awash in cash. With an almost $33 billion surplus, surely, lawmakers in Austin can find room in the budget to bury this punitive tax.”
CLICK HERE to read the full op-ed. Excerpts are below.
Bury the Burdensome Inventory Tax
The Rio Grande Guardian
May 26, 2023
By: John Kreidler
As a small business owner in the great state of Texas, I know firsthand the challenges we face in keeping our enterprises up and running. My family started Kreidler Funeral Home, Inc. in 1912, only the second “undertaker” here in the Rio Grande Valley at the time. For more than a century, our family has helped mourners during their darkest days. […]
But in life and business, there are two certainties. As the old adage goes, death and taxes. The most significant challenge that haunts our business is property taxes. In particular, the inventory tax. As one of only nine states that taxes a business’ inventory – that’s everything related to a business operation whether that ‘thing’ turns a profit or not – this tax is an undertaker of Texas small businesses. […]
Just as a funeral brings closure for a family in mourning, tax relief can breathe new life into struggling small businesses. This shouldn’t be too difficult, given that our state is awash in cash. With an almost $33 billion surplus, surely, lawmakers in Austin can find room in the budget to bury this punitive tax. […]
Given the economic uncertainty we face – from the worker shortage, supply chain disruptions, and looming recession – on top of massive price increases, it’s a slap in the face to job creators when another session goes by with zero business tax relief.
Homestead exemptions are to be applauded but, the Legislature must bury the inventory tax now. […]
It’s time for the Texas Legislature to breathe life back into our struggling enterprises. Let’s bury the inventory tax once and for all.
Background:
Texas is one of nine states to fully tax inventory. The current exemption is $2,500, up from $500— which only recently increased in 2021. Before it was increased during the 87th Legislative Session, the exemption had not increased since 1995. Business owners haven’t seen franchise tax relief since 2015.
In December 2022, NFIB State Director Annie Spilman penned an op-ed for the Dallas Morning News outlining why property tax relief is crucial for small businesses and the Lone Stars’ economic recovery. CLICK HERE to read excerpts of the op-ed.
In January 2023, NFIB launched the ‘Cut the Inventory Tax’ campaign, a paid effort including statewide radio and digital advertisements encouraging legislators to provide needed relief for Texas small businesses. Additionally, several NFIB members, including Andy Ellard, Tim Green, and Bud Walters, have been featured in local news coverage on the issue. To learn more, visit NFIB.com/TexasTaxCut.
During his State of the State address, Governor Abbott listed property tax relief as his first emergency item for the legislature.
