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 Passing the margins tax was a huge mistake and it should be repealed.”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.
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
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
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.
Texas Bill Would Repeal State Business Franchise Tax
Author: James F. McDonough
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.