SB 186 Sunsets Franchise Tax by year 2020
AUSTIN Texas (Texas Insider Report) Our state needs meaningful tax reform to reduce the impact of the Franchise Tax and
lighten the burden placed on the shoulders of small businesses said Texas
State Sen. Brandon Creighton (R-Conroe) while unveiling his Franchise Tax Reform legislation for
the 84th Regular Session of the Texas Legislature which reconvened on last week on January 13 2015.
My staff and I are working tirelessly to lay the groundwork necessary for a successful session for the people of Texas Senator Creighton said.
Texas is continually named the number one state to do business and these bills will keep that momentum moving forward.
Senate Bill 186 provides a sunset of the Franchise Tax repealing it by the year 2020 and requires the Comptroller of Public Accounts to seek alternative revenue sources in place of lost Franchise Tax revenue.
Senate Bill 330 reforms current Franchise tax calculations to end taxation on businesses operating at a loss gives profitable businesses the ability to deduct their costs of goods sold as well as compensation paid to employees and provides an across-the-board $1 million revenue deduction.
Senate Bill 331 and Senate Joint Resolution 23 provide Franchise Tax rebates by returning half of the unencumbered balance at the end of the biennium to businesses after transfers to the Economic Stabilization Fund (Rainy Day Fund).
Legislators may continue to file bills until the bill filing deadline on March 13 2015. To search legislation visit the Texas Legislature online at
www.capitol.state.tx.us
SENATOR BRANDON CREIGHTON represents District 4 which encompasses parts of Montgomery Harris Chambers Jefferson and Galveston Counties. He currently serves on the Senate Committee on Open Government the Senate Committee on State Affairs and the Joint Interim Committee on Judicial Selection.
