Rep. Cason files bill to eliminate the business franchise tax entirelyApril 12, 2021
AUSTIN, TEXAS – Representative Jeff Cason announced today his filing of House Bill 3000, the Repeal the Franchise Tax Act. This bill would repeal the Franchise Tax in its entirety.
“The economic hardships of the last year have put many Texas businesses on the brink of bankruptcy. It is time to repeal this tax to help Texas businesses recover and for Texas to regain its status as the economic leader of the nation,” Rep. Cason said.
Texas’s business franchise tax—often called the “margins tax”—was revamped in 2006 to increase revenue for the state in support of efforts to reduce local property taxes after the Texas Supreme Court ruled the property tax system unconstitutional. It has been documented in research, court cases, and argued by legislators that the margins tax hinders economic activity because it is inefficient and costly.
The current cost to businesses, in both taxation and compliance, have stripped approximately $6.3 billion from the economy, while failing to keep local property taxes low, as the tax itself has failed to meet taxation collections expectations. During the 84th Legislative session, the state cut the margins tax by 25 percent – resulting in $2.6 billion in savings to businesses throughout the state. In addition, the Comptroller’s report from the 2018-19 Biennial Revenue Estimate indicate that more tax revenues were collected after the tax cut than a static analysis would suggest.
House Bill 3000 has been referred to the House Ways & Means Committee, chaired by Rep. Morgan Meyer (R) of Dallas.
HELP SUPPORT THIS BILL!
Call the members of the committee and ask that they support HB 3000:
Chairman Morgan Meyer (512) 463-0367
Vice Chair Shawn Thierry (512) 463-0518
Rep. Angie Chen Button (512) 463-0486
Rep. Sheryl Cole (512) 463-0506
Rep. Bobby Guerra (512) 463-0578
Rep. Trey Martinez Fischer (512) 463-0616
Rep. Jim Murphy (512) 463-0514
Rep. Candy Noble (512) 463-0186
Rep. Eddie Rodriguez (512) 463-0674
Rep. Scott Sanford (512) 463-0356
Rep. Hugh Shine (512)463-0630