Job creators will see tax savings from raised franchise tax exemption and targeted relief.
Lawmakers in Austin put aside their differences and came together to provide meaningful property tax relief for Texans. Before taking effect, voters will have to approve the tax cuts this November.
In addition to the $100,000 homestead exemption for residential properties, here’s how small business owners will benefit from the tax cuts:
- $12 Billion in Tax Compression: The state will buy down residential and commercial property owners’ local ISD taxes.
- A 20 Percent Limit on Taxable Value: Increases on non-residential properties’ taxable value will be limited to 20 percent. This applies to commercial and non-residential properties under $5 million in value.
- Example: A small business owner’s appraisal value may increase by 300 percent, but the value that the owner is taxed on cannot increase any more than 20 percent.
- Greater Transparency: Counties with more than 75,000 residents will now be allowed to elect three members of their countywide appraisal board.
While NFIB will continue working with lawmakers to cut the inventory tax, this tax package is an important step forward. In a conversation with CBS 11’s Jack Fink, Dallas small business owner Andy Ellard said:
“As a small business owner, I’m glad the House and Senate have put aside their political differences and are really finally going to give us some tax relief. Us small businesses, we need it. We’re going to use it to put back in our business, to reinvest in our employees, and keep this moving forward.”