Texas House Bill HB476

Texas 2011 - 82nd Regular

• Filed: 12/30/10
• Introduced: 12/30/10
• Refer: 2/17/11

Caption

Relating to the retention of the $1 million total revenue exemption for the franchise tax.

Impact

If enacted, HB 476 would have a significant impact on local businesses by providing them with relief from taxation, which could enhance their ability to reinvest in their operations and hire more employees. The retention of the exemption aligns with broader legislative goals of fostering entrepreneurial activity and economic resilience, especially during challenging fiscal periods. Moreover, this bill underscores the state government's commitment to supporting small businesses as a foundation of economic stability and job creation within Texas.

Summary

House Bill 476 seeks to retain the $1 million total revenue exemption for the franchise tax in Texas. The bill aims to support small businesses by allowing those with total revenues of less than $1 million to remain exempt from the franchise tax. This exemption has been an essential aspect of tax policy in Texas, designed to promote economic growth and alleviate financial burdens on smaller enterprises, which play a vital role in the state's economy.

Sentiment

The sentiment surrounding HB 476 appears to be largely favorable, especially among small business owners and advocates for tax relief. Supporters argue that retaining the revenue exemption is crucial for fostering a conducive environment for small business growth and sustainability. While there isn't extensive documented opposition, concerns may arise regarding the potential implications for state revenue. Nonetheless, many view the measure as a positive step toward nurturing local economies and reducing financial barriers for small enterprises.

Contention

A critical point of contention regarding HB 476 is the balance between providing tax relief to small businesses and the impact on state revenue sources. Opponents may argue that maintaining this exemption could lead to shortfalls in the state's budget, which could affect funding for essential public services. Proponents counter that the benefits of supporting small businesses through this exemption would ultimately generate more economic activity and tax revenues in the long run. As such, the discourse around the bill highlights the ongoing debate over effective tax policy and its ramifications on state economic health.