5/27/2009 10:16 PM
Sen. Dan Patrick (R-Houston) has passed HB 4765, which raises the exemption for businesses from the state franchise tax from $300,000 to $600,000 in gross receipts. The Patrick version provides permanent tax relief, whereas the House version of the bill provides temporary relief from the franchise tax (two years only), but with a $1 million exemption. The Patrick bill also goes to a $1 million adjustment for 2010 and 2011, contingent upon a change on the method of taxation of smokeless tobacco. The bill now goes to the House for further consideration.
"Providing permanent tax relief to the businesses that comprise the economic engine of the Texas economy was a top priority for me this session," Patrick said. "When the curtain closes on this session, I can return to my district confident that I have delivered on my promise to cut taxes."
"Small businesses make up the strongest engine driving our Texas economy and we must do everything we can to help them continue to thrive and grow," Lt. Governor David Dewhurst said. "By permanently doubling the earnings exemption for small businesses, we will help them keep more of their hard-earned money to reinvest in Texas through job creation, innovation and expansion."