Many trucking operations in Texas would benefit from a bill that could get consideration at the statehouse early next year.
In 2009, the Texas Legislature temporarily raised the franchise tax revenue exemption for small businesses, including truck operations, to $1 million. The change affected nearly 40,000 additional small businesses around the state.
OOIDA Senior Member Danny Schnautz of Pasadena, TX, said the tax break is good for business. Schnautz is in charge of operations, sales and accounting for Clark Freight Lines in Pasadena, TX.
“Anytime we’re paying less to the government we can do something else with the money to benefit our business,” Schnautz said. “And that will ultimately benefit taxpayers.”
The exemption from the state’s primary business tax is slated to sunset at the end of 2013. If lawmakers don’t act in the months ahead, the exemption will revert back to affecting small businesses that earn less than $600,000 a year.
Rep. Harvey Hilderbran, R-Kerrville, has prefiled a bill that would make permanent the tax exemption for companies that earn less than $1 million annually.
Hilderbran said the tax exemption has helped keep unemployment low in the state and has promoted job growth.
“Permanently extending the exemption will help attract new businesses to the state and encourage growth of those already here,” Hilderbran stated.
The bill – HB213 – can be considered during the session that begins Jan. 8. An identical Senate bill – SB100 – has also been offered.
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