Texas Border Business
AUSTIN – NFIB State Director Jeff Burdett urged the Texas Senate to vote “yes” on SB 32, a bill that would give small businesses some relief from the property taxes they pay on office equipment, inventory, and other items they use to run their business.
The Senate Local Government Committee approved the measure on Thursday. It now goes to the full Senate for consideration.
“Right now, businesses don’t have to pay property taxes on business personal property if the total value at a single location is less than $2,500,” Burdett said. “SB 32 would create an exemption for the first $25,000 of a business’ personal property.” In addition to the $25,000 business personal property tax exemption, SB 32 will also provide a franchise tax credit of up to 20 percent toward inventory tax liability for businesses.
“Small business owners already pay sales taxes on equipment, inventory, and other property,” Burdett said. “The business personal property tax means they’re paying an additional tax on the same items over and over again.”
“There’s a lot of uncertainty right now for small business owners, and it’s getting worse,” he said. “NFIB’s most recent Optimism Index shows fewer owners think business conditions will improve over the next six months. Inflation is still a big problem, and fewer owners think it’s a good time to grow their businesses.”
“SB 32 would ease the financial burden on Main Street businesses and make it easier for them to grow, create jobs, and support their communities,” Burdett said.
“On behalf of our members, I want to thank Chairman Paul Bettencourt and Sen. Tan Parker for sponsoring this bill and Lt. Gov. Dan Patrick for continuing to champion Main Street businesses. Our hope now is that the full Senate will vote ‘yes’ on this common-sense legislation.
