Small business owners will get a little breathing room with passage of House Bill 4765, authored by taxpayer champions Ken Paxton of McKinney, Bill Callegari of Katy and Brandon Creighton of Conroe. The measure raises the margins tax exemption from $300,000 to $1 million — but only for the 2010-2011 biennium.
The exemption would expire in 2012 — returning to $300,000 — if the legislature doesn’t act before then.
In a statement from the Texas Conservative Coalition, State Rep. Wayne Christian of Center said, “The timing of the new margins tax on Texas business could not have been worse: tax bills came due right as the economy began to worsen. By raising the revenue exemption, small businesses will get some needed relief to help deal with the terrible aftershocks of the economic crisis.”