Protect Texas Small Businesses

Cut the Inventory Tax

Texas small businesses are dealing with some of the most difficult economic conditions they’ve seen in years. Growing uncertainty, high labor costs and inflation are making it harder than ever to operate and plan for the future.

Lawmakers can provide immediate, meaningful relief by cutting our state’s inventory tax.

Texas is one of just nine states where business owners pay taxes on the value of their inventory for sale as well as their business personal property including desks, chairs, laptops, machinery, supplies, and everything else used to generate income.

Why it hurts small businesses:

• Requires complicated, time-consuming calculations
• Penalizes growth by taxing inventory that may not sell for months
• Increases already high operating expenses

Cutting the inventory tax by increasing the exemption would allow small businesses to use more of their hard-earned income to grow and invest in their employees and communities.

99.8% of all businesses in Texas are small businesses and they employ 45% of Texas’ workforce.

Clearly, the entrepreneurial spirit is alive and well in Texas. Now is the time to ensure that small business owners have the resources they need to continue to create jobs and grow the Texas economy. Now is the time to cut the inventory tax.

TAKE ACTION

NFIB In The Media

Texas Small Businesses Deserve a Break From Peculiar Property Tax

The Dallas Morning News

Small Businesses Urge Senate to Ease the Burden of Personal Property Tax

Texas Border Business

Texas Senate Passes Bill That Would Cut Taxes for Business Owners

Community Impact

We are a family-owned business that has been in business for 32 years. Our business continues to grow, but we are not quite there without being able to hire a fifth employee. Raising the inventory tax exemption would give me back enough money to hire another employee which would change the dynamics of my business.

Freer

I run a small distribution company in Hays County. My business works on very small margins. We typically have around $350,000 in inventory on hand. With an inventory tax cut, I would move from part time help to a fulltime employee, which would be a game changer for my business. After COVID and the economic decline, I have not been able to afford full time help. If I had such help, I could dedicate my time to growing the business instead of just surviving.

Buda