Now that both chambers of the Texas Legislature have passed bills to address the state’s inventory tax, NFIB is urging lawmakers to come together on a final plan that delivers meaningful, lasting relief for small businesses.

“We’re grateful the Senate passed Senate Bill 32 and kept the momentum going,” NFIB Texas State Director Jeff Burdett said. “Now it’s time for the House and Senate to work together on a final version that helps small businesses across Texas.”

Texas is one of just nine states that still tax tangible personal property—business items like desks, computers, tools, and supplies. This tax, also called the inventory tax, hits small business owners disproportionately due to the recurring nature of the tax.

“Small business owners already pay sales taxes when they buy equipment and inventory. Then, the business personal property tax kicks in annually, which means they’re taxed again—year after year—on the same items,” Burdett said. “The percentage of small business owners reporting taxes as their single most important problem is on the rise. That illustrates why it’s a challenge for local businesses to operate, add jobs, and support their communities.”

SB32 would raise the exemption on business personal property to $25,000 and create a new tax credit for inventory taxes. The House passed a different version of the bill, House Bill 9, on April 3. The House version would raise the exemption to $250,000. Both bills require voters to approve a constitutional amendment this November before taking effect.

“Small businesses are facing high costs and a lot of uncertainty,” Burdett said. “Texas lawmakers can help by reducing the tax burden and supporting the people who power our economy.”