NFIB Texas has pushed for meaningful property tax relief with the launch of the ‘Cut the Inventory Tax’ campaign
AUSTIN (March 22, 2023) – Small business owners applaud the Senate’s passage of (SB 5) which would provide meaningful tax relief for local job creators. Introduced by Sen. Tan Parker (R-Flower Mound), SB 5 increases the inventory tax exemption and offers a credit toward the franchise tax. NFIB has made cutting the inventory tax a top priority for the 88th Legislature, with paid statewide radio and digital advertisements to encourage legislators to provide needed tax relief to Texas small businesses. Following the Senate’s passage of SB 5, NFIB State Director Annie Spilman said:
“This is the first tax relief measure of its kind to combine both inventory tax relief and a franchise tax credit to help businesses of all sizes, but particularly our small businesses. In the past three years, our local job creators have faced enormous challenges, and with our state’s $33 billion budget surplus, there’s no question they deserve meaningful tax relief this legislative session. This tax relief will allow small business owners to invest in their employees, meet their customers’ needs, and contribute to our communities. We look forward to working with lawmakers to get this tax relief across the finish line and to Governor Abbott’s desk for signature.”
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, 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.
