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 Passing the margins tax was a huge mistake and it should be repealed.”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
New Jersey’s Next Manufacturing Tax Credit: Stability Secured, Timing Matters
A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
A Simple Guide to Industry Roll-Up Acquisitions
When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher
Genesis Mission: How the U.S. Government’s New AI Platform Will Reshape Corporate Innovation, Risk, and Competition
The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard
Stablecoins and the GENIUS Act: How New Global Rules Are Reshaping Compliance
Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
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.