Lt. Gov. Dan Patrick today issued a statement celebrating the Senate's passage of Senate Bill 32 (SB 32), authored by Sen. Paul Bettencourt (R-Houston), which delivers significant tax cuts for small businesses in Texas.
"I have been fighting to deliver tax relief for Texans and our businesses long before I was elected to the Texas Senate," said Lt. Gov. Patrick. "With the passage of SB 32, the business personal property tax exemption will be significantly increased, and more Texas businesses will be eligible to receive it, also benefitting from reduced compliance costs."
SB 32 increases the business personal property tax exemption from the current $2,500 to $25,000. The bill also changes the exemption from a de minimis exemption, which only applied if total taxable property was below a certain threshold, to a universal exemption. This means all businesses with business personal property will be able to claim the exemption to reduce their tax liability.
In addition to the increased exemption, SB 32 provides a 20% inventory tax credit to lower a business’s franchise tax liability, with a total cap of $500 million in credits awarded statewide per fiscal year.
Lt. Gov. Patrick emphasized the importance of this legislation, noting that a previous version (SB 5) did not pass in the House during the last regular legislative session. "SB 32 is a priority of the Senate and mine this session to finally deliver the tax cut Texas small businesses deserve," he stated. He also urged Speaker Burrows and the Texas House to take swift action on the bill and thanked Sen. Bettencourt for his "continued leadership in reducing taxes for Texans."
For the increase to the business personal property tax exemption and the shift to a universal exemption to be fully enacted, voters will need to approve Senate Joint Resolution 81 (SJR 81), a constitutional amendment that codifies these changes.
