Declarations

Some Needed Relief

“By raising the revenue exemption, small businesses will get some needed relief to help deal with the terrible aftershocks of the economic crisis.”

—Texas State Rep. Bill Callegari (Katy) comments on a bill passed by the Texas House of Representatives that will allow small businesses to claim state franchise tax exemptions for income up to $1 million, at least temporarily.

Callegari is one of the authors of HB 4765, which temporarily raises the total revenue exemption from $300,000 to $1,000,000 for tax reports due in 2010 and 2011 (tax years 2009 and 2010 respectively).

After that period, the total revenue exemption returns to $300,000. The bill’s authors say 230,000 additional businesses will now qualify to exempt from paying the margins tax.