Small Businesses in Texas request for tax exemptions

Texas lawmakers are now looking to give some tax reliefs to businesses running in their state. Small businesses in Texas have complained about state’s new business tax has been unfairly burdensome on them. And hence now the legislatures are working hard to lessen the strain on these small businesses.

The request for tax exemptions has been asked for businesses whose revenue are $1 million and less. The Legislature adopted the business tax under court order in 2006 to help cover the $14 billion cost of buying down school property tax rates. But the revenue from the business tax, known as the margins tax, has fallen more than $1.5 billion short of projections.

By implementing these tax exemptions more than 130,000 small businesses would be benefitted. However the state has to shed a loss of $85 million. Small businesses have complained that the tax is hitting them especially hard especially during this recession.

Under this current tax structure, all the companies are taxed at 1 percent to 0.5 percent for retailers. Companies can deduct for cost of goods or employee benefits like salary and health care. Businesses also are hoping for a measure that would ease their tax burden in years when they're not profitable.