FOR IMMEDIATE RELEASE
March 27, 2015
(512) 463-0120 office
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AUSTIN, TX – This week, the Texas Senate passed a $4.6 billion tax relief package to benefit our homeowners and small businesses. Senator Juan "Chuy" Hinojosa was proud to joint author SB 1, SB7, and SB 8, legislation to provide critical tax relief to our Texas taxpayers.
SB 1 increases the homestead exemption for school district taxes from $15,000 to 25% of the home median market value. This means that for the average tax payer, the new exemption would be about $34,000. That is a significant increase in tax savings for our local homeowners.
SB 8 establishes a $4 million total revenue exemption from the state's business franchise tax for small businesses, while SB 7 reduces 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 property taxes homeowners will have to pay.
SB7 and SB 8 will similarly give small business owners a tax reduction. Small businesses create jobs and drive our economy; they are the backbone of our Texas economy. For many small businesses struggling to survive, 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 in Texas that would otherwise pay the 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 so they will be able to keep more of the dollars they earn."