NFIB Members & Local Job Creators Attend Historic Tax Relief Signing Ceremony

August 15, 2023

Small business owners will benefit from $18 billion in property tax relief.

NFIB Members & Local Job Creators Attend Historic Tax Relief Signing Ceremony

NFIB members and small business owners joined lawmakers in New Caney for a ceremonial signing of historic tax reform. Alongside Governor Greg Abbott, Lt. Governor Dan Patrick, and Speaker Dade Phelan, members of the business community celebrated the tax relief, which will be on the ballot this November. In addition to the $100,000 homestead exemption for residential properties, small business owners will benefit from targeted property tax relief, including:

Expanded Franchise Tax Exemption: The threshold for businesses that are excluded from filing and paying the franchise tax was expanded to $2.47 million gross instead of $1.235 million gross.
$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.

“The whole bill is a net plus, no question about it,” NFIB Member Small Business Owner Robert Mayfield said in an interview with the Austin Business Journal. “We finally got some tax relief but you might say it’s a good start. There is still some more that we would like to see on there.” 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. NFIB will continue working with lawmakers to cut the inventory tax. For more information, visit NFIB.com/TexasTaxCut.

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