Texas Senate Bill SB100

Texas 2013 - 83rd Regular

• Filed: 11/12/12

Caption

Relating to the total revenue exemption for the franchise tax.

Impact

The proposed changes under SB100 are likely to have a significant impact on the state’s tax structure, particularly benefiting smaller businesses by reducing their overall tax obligations. This could encourage more entrepreneurial ventures within Texas, increase employment opportunities, and foster economic development. However, the financial impact on state revenues must also be considered, as these exemptions could lead to a decrease in overall tax collected by the state, necessitating adjustments in budget allocations in other areas.

Summary

Senate Bill 100 aims to amend the Texas Tax Code specifically regarding total revenue exemptions for franchise tax. The bill proposes that taxable entities with total revenue less than or equal to $5 million are exempt from paying franchise tax, thus potentially benefiting many small and medium-sized businesses in the state of Texas. As it is structured, the bill intends to relieve certain tax burdens, thereby providing a more favorable business environment for lower-revenue entities and helping them to grow and expand their operations.

Sentiment

The sentiment surrounding SB100 appears to be generally positive, particularly among proponents who see it as a necessary measure to support small businesses and stimulate economic growth. Advocates argue that by alleviating the tax burden on lower-revenue enterprises, the state will foster a more conducive environment for business development. However, there are concerns from some legislators about the potential long-term financial implications for the state's tax revenue, indicating a mixed sentiment that recognizes the importance of supporting small businesses while also maintaining fiscal responsibility.

Contention

Notable points of contention regarding SB100 revolve around the balance between tax relief for small businesses and the overall fiscal health of the state. Critics argue that while supporting small businesses is essential, the reduction of franchise tax could undermine state funding for public services reliant on tax revenue. Discussions in committee meetings may point to differing views among legislators about whether the benefits of the bill outweigh the potential financial risks involved.