P.O. Box 12068, State Capitol
Austin, Texas 78711
Tel. (512) 463-0112
FOR IMMEDIATE RELEASE
February 2, 2017
AUSTIN – Texas State Senator Jane Nelson, R-Flower Mound, today filed SB 17, which establishes a formula with the goal of phasing out the franchise tax over the next 10 years.
"SB 17 keeps Texas on the path to responsibly eliminating the franchise tax while maintaining the ability to meet our needs. If we are to remain the friendliest state for businesses, we need to remove this obstacle to job creation and economic growth,” Senator Nelson said. “Under SB 17, as the economy grows, so does tax relief.”
Specifically, SB 17:
- Reduces the franchise tax every biennium if the Comptroller certifies that the state will experience at least 5-percent revenue growth;
- Stipulates that 50 percent of the additional revenue is dedicated to franchise tax relief; and
- Based on current revenue estimates, the franchise tax would be phased out within approximately 10 years.