FOR IMMEDIATE RELEASE
February 24, 2015
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AUSTIN, TX - Today, Senator Juan "Chuy" Hinojosa, along with 22 Senate colleagues, filed legislation to provide critical tax relief to our Texas taxpayers and small businesses.
SB 1 and SB 7, together will provide about $4 billion in tax relief for the 2016-17 biennium. SB 1 increases the homestead exemption for school district taxes from $15,000 to 25% of the home median market value. School districts will be held harmless, meaning that the state will cover the cost of tax relief. SB 8 will establish a $4 million total revenue exemption from the state's business franchise tax while SB 7 will reduce the franchise tax rate by 15% for those over the $4 million threshold.
Senator Hinojosa issued the following statement:
"I am proud to joint-author these tax relief bills giving our hard-working families and small business owners much-needed tax cuts.SB 1 will specifically benefit homeowners with immediate and long-term economic relief by raising the homestead exemption and decreasing the taxes homeowners will have to pay. Our taxpayers will be able to keep more of the dollars they earn.
SB7 and SB 8 will similarly give small business owners a tax break. Small businesses create jobs and drive our economy; they are the backbone of our Texas economy. For many small businesses struggling to make it, the franchise tax represents an unnecessary and burdensome tax that limits job growth and economic investment. SB 8 will exempt over 61,000 small businesses that would otherwise pay the state's franchise tax. These small businesses represent over 52% of all businesses in Texas required to remit payment under the current franchise tax structure.
These bills make good economic sense and will provide critical tax relief on a statewide level for our Texas families."