LUBBOCK, TX (KCBD) - The State Legislature is currently working on a bill that would prevent small businesses from having to pay state business taxes.
Saturday, NewsChannel11 had the opportunity to see what a couple of local business owners think about the bill, and they said they were up for anything that helps them keep more of their revenue.
Keith Bynam, co-owner of Joni Keith CO. said the current economic status makes most business owners jump at the sight of a little extra income. "For any business, any money that you keep in your pocket is just something that you can turn around and use for something else," he said.
State Senator Dan Patrick's recent proposal to cut the franchise tax for some small businesses is one way to save some money. The bill is a follow-up to complaints from business owners about a tax the Legislature adopted in 2006 to help pay for a school property tax cut.
Gourmet Pantry owner Ed Fowler understands these complaints. "It's a burden in the sense that not only is it expensive, but on the other hand, you have to spend a lot of time and effort doing the paperwork and making sure you meet all the criteria," he said.
The proposed bill will exempt businesses that make less than one million from paying the franchise tax. Right now, small businesses that make between $300,000 and one million pay the tax on a scale depending on their revenue. As many as 120,000 companies, who make between $1 million and $10 million, would also benefit, their tax rate could drop from 0.575 percent to point 0.4 percent.
Fowler says he hopes the bill passes. "I'm in favor of this bill," he said. "I'm in favor of any taxing bill or any situation that reduces the tax burden and helps the individual, especially the smaller individual, the private entrepreneur; anything to encourage growth and business."
The bill is currently in committee so it could take a while until any final decisions are made.
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