P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
FOR IMMEDIATE RELEASE
March 18, 2009
AUSTIN — Senator Jane Nelson, R-Flower Mound, today announced the filing of SB 19, the Small Business Stimulus Package, which seeks to reduce the franchise tax burden on small businesses in Texas. Senator Nelson is a co-author of the bill.
"Tax relief is precisely the type of stimulus we need here in Texas, especially for our small business owners who are struggling in this economy," Senator Nelson, who co-owns and operates an aircraft component manufacturing company in Denton, said. "Small business owners provide the majority of jobs in Texas. They represent the lifeblood of our state economy, which is faring far better than other states. It is vital that we keep our small business healthy and productive."
SB 19 contains the following provisions:
- Reduces the state's franchise tax on 90% of the businesses who pay it;
- Reduces the maximum franchise tax rate for small businesses to 33%;
- Increases the small business exemption to businesses with gross receipts less $1 million rather than the current amount of $300,000;
- Waives taxes for those businesses struggling the most, specifically those with a total franchise tax bill of less than $1,000.
The bill is expected to reduce state revenue by $315 million. "We are fortunate to be one of a handful of states with positive cash flow, so we can afford to help our small businesses. In fact, we cannot afford to do otherwise," Senator Nelson said.