James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Texas Bill Would Repeal State Business Franchise Tax
Author: James F. McDonough
Date: November 18, 2014
Key Contacts
Back
Texas state legislators hit the ground running following the election, taking advantage of the Nov. 10 chance to pre-file bills for the coming 84th Legislature. The 84th Legislature doesn’t officially start until January, but that didn’t stop lawmakers from pre-filing bills that demonstrate where they stand on a variety of new and old issues, according to The Corpus Christi Caller Times. More than 300 bills had already been filed by noon on Nov. 10. Bills ranged from drug testing for welfare recipients to texting while driving. Democrats filed bills in favor of gay marriage and raising the minimum wage.
A number of bills were also filed regarding small business, according to the news source. State Sen. Charles Schwertner, R-Georgetown, filed SB 134, which is intended to set up a permanent $5 million revenue exemption from the state business tax, also known locally as the gross margins tax or franchise tax.
According to Breitbart, State Sen. Craig Estes, R-Wichita Falls, went even further. The senator pre-filed SB 105, which would repeal the Texas business tax entirely. This would make Texas the largest state to have no tax on business or personal income tax, followed by Nevada, South Dakota, Washington and Wyoming.
“The margins tax is a uniquely harmful tax,” Sen. Estes told Breitbart Texas. “It has high compliance costs, picks winners and losers by treating similar businesses differently, and must be paid whether or not a business turns a profit. Passing the margins tax was a huge mistake and it should be repealed.”
Breitbart did not note how the state would make up for the corresponding loss of tax revenue.
The Caller Times noted that many of these bills are unlikely to make it through committee, though this legislature in Texas is slated to be more conservative than the last.
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.