NEW CANEY (Aug. 9, 2023) – Small business owners in Texas are grateful Governor Greg Abbott has signed the $18 billion property tax relief into law. The measure, which raises the franchise tax exemption and provides targeted property tax relief to small business owners, will help job creators raise wages, expand their operations, and invest in their communities.

Following the bill signing ceremony, where several NFIB small business owner members were in attendance, NFIB State Director Annie Spilman said:

“Even in the best of times, job creators operate on thin margins. Rising property taxes, on top of inflation and the worker shortage, have created a lot of uncertainty for Main Street. This tax relief will provide meaningful savings for our small business owners, so they can continue to hire hardworking Texans, raise wages, and invest in their businesses.

“Our members are hopeful that this tax relief is just the first step toward even greater reform of the Texas tax code. Texas is one of only nine states that fully taxes inventory – meaning everything, including items that do not turn a profit – are subject to taxation. This is a complicated, time-consuming, and expensive tax burden our small business owners will have to shoulder without reform. We will continue working with lawmakers to cut the inventory tax.”

Background:

As the Legislature debated tax relief, Spilman testified before the House’s Select Study Committee on Sustainable Property Tax Relief, where she urged lawmakers to cut taxes so small business owners can “attract and keep workers.”

NFIB has made cutting the inventory tax a top priority for the 88^th Legislature, with paid statewide radio and digital advertisements encouraging legislators to provide needed tax relief to Texas small businesses. For more information, visit NFIB.com/TexasTaxCut.