Texas small business tax exemption could change
Some Texas legislators say it will be tough to keep the current small business tax exemption as the state faces up to an $18 billion shortfall in the next two-year budget period.
House Ways and Means Committee Chairman Rene Oliveira of Brownsville said, "It's going to be very hard to maintain it."
The 2009 Legislature temporarily exempted businesses from paying the tax if they have $1 million or less in revenue, up from the previous cutoff of $300,000.
The San Antonio Express-News reported Monday that spared 40,000 additional businesses, at a cost of $87 million in lost taxes this fiscal year.
The million-dollar exemption was enacted for only two years, after which the floor will settle at $600,000 unless the Legislature acts.
Lawmakers convene in January.
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