Relating to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Impact
The implications of SB 938 are likely to foster an encouraging environment for veterans looking to start their own businesses. By waiving filing fees and franchise taxes for a defined period, the state seeks to mitigate the financial burdens associated with launching a new business. Additionally, this legislation provides a definition for 'new veteran-owned businesses' and outlines the necessary verification process through the Texas Veterans Commission, thereby establishing a clear framework for eligibility and compliance.
Summary
Senate Bill 938 aims to provide significant support to new veteran-owned businesses in Texas by offering a franchise tax exemption for a specific period. Under this bill, any new veteran-owned business is exempt from franchise taxes and certain filing fees during the initial five years of operation. This initiative is intended to facilitate the establishment of businesses run by veterans who have honorably served in the military, thereby promoting economic opportunity and entrepreneurship among this demographic.
Sentiment
The sentiment surrounding SB 938 appears predominantly positive among legislators and veteran advocacy groups. Proponents argue that this bill is a necessary step towards recognizing the sacrifices made by veterans and promoting their reintegration into the workforce as entrepreneurs. However, some may voice concerns regarding the long-term fiscal implications of tax exemptions, questioning how it could affect state revenues and the equitable treatment of all businesses.
Contention
While SB 938 has garnered support, potential contentions may arise regarding the sustainability of its financial provisions. Critics could argue that such exemptions create disparities between veteran-owned and traditional businesses, particularly if they are not balanced with comprehensive support for all small entrepreneurs. Furthermore, the sunset provision set for 2026 could raise questions about the future prospects of these businesses after the expiration of exemptions, leading to debates about ongoing state support for veteran initiatives.
Same As
Relating to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.
Relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report.
Relating to the elimination of certain property taxes for school district maintenance and operations and the provision of public education funding by increasing the rates of certain state taxes.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Relating to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Relating to an exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.
Relating to the exemption from the franchise tax and certain filing fees for certain businesses owned by veterans during an initial period of operation in the state.