FOR IMMEDIATE RELEASE 01/28/2015
METCALF JOINT AUTHORS BILL TO PHASE OUT AND REPEAL THE FRANCHISE TAX
AUSTIN – Today, Representative Will Metcalf Joint Authored House Bill 552 along with Representative Dan Huberty to phase out and repeal the Franchise Tax.
“It is important to understand the devastating effects that the Franchise Tax has on small businesses throughout the state,” Representative Metcalf said, “This tax can even be levied against a business operating with a net loss for the year. This is essentially a double tax for any small business with revenue of $1 million or higher.”
HB 552 will take effect in 2015, with the process of lowering the tax beginning in 2016. Currently, the Franchise Tax has different rates for different business types. The businesses will see immediate relief with the first rate reduction taking place in 2016. The reductions will continue annually until 2020 when the phase-out will be complete and businesses will be freed from this strangling tax.
“The Franchise Tax, since its inception, has progressively underperformed. It is a burdensome and inefficient strain that the state has put on our small businesses,” said Representative Metcalf.
To read HB 552, visit www.legis.state.tx.us, or for more information, contact our Capitol office at (512) 463-0726.