FOR IMMEDIATE RELEASE 01/19/2017
REPRESENTATIVE SHAHEEN FILES BILL TO PHASE OUT TEXAS FRANCHISE TAX
Bill Seeks to Phase Out Tax by Cutting Rate by 25% over Next Four Years until Elimination
AUSTIN—State Representative Matt Shaheen filed H.B. 1095 today, calling for the repeal of the Texas franchise tax. "This tax has been a burden on businesses in Texas for far too long," said Shaheen. "It's time we live up to our reputation as a business-friendly state and repeal the franchise tax."
The tax, also known as the margins tax, operates on different standards than the federal corporate income tax and oftentimes requires businesses to use different accounting methods to be in compliance with the law. "If we want to pay less for goods and services, higher pay for workers, and more economic opportunities for Texans, then we should repeal this tax," said Shaheen.
The bill phases out the franchise tax over the next two bienniums, reducing the tax by 25% yearly until it is completely phased out. "As much as I'd like to repeal the entire tax immediately, the state needs time to replace this revenue source with growth. That's why my bill phases the tax out gradually over the next four years. This guarantees future prosperity for Texas business owners while ensuring proper funding for necessary state services such as education and CPS."
Contact: Mikael Garcia