AUSTIN, Texas (AP) _ Thousands of small Texas companies would get a two-year break from the state business tax under a measure preliminarily adopted in the House on Monday.
The tax, which businesses are currently paying for just the second time, was designed to fix the state’s franchise tax and school funding system. But small businesses have complained that the tax is hitting them especially hard.
After a chorus of complaints from the business community, the plan by Rep. Rene Oliveira would temporarily increase the exemption to include businesses making $1 million or less. The exemption currently stands at $300,000.
But, increasing the exemption would cost the state more than $172 million in lost revenue at a time when state revenue is already plummeting.