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Small business owners who previously have not qualified for an exemption from the margins tax may now benefit from a substantial increase in the exemption amount.
On June 16, 2009 Governor Perry signed House Bill 4765 that increases the margins tax revenue exemption. The increase will provide instant tax relief to those businesses that continue to promote a healthy economic environment in Texas. According to Texas Comptroller estimates, nearly forty thousand small businesses will benefit from the tax cut. Additionally, the average estimated tax relief would be a reduction of $4,359.
The bill amends section 171.002 of the Tax Code, increasing the margins tax exemption from a revenue ceiling of $300,000 to $1,000,000. However, the increase to $1,000,000 is contingent upon revenue generated from adjustments made to the method of taxation of smokeless tobacco. The tax rate for smokeless tobacco products will be calculated based on their weight rather than on the manufacturer |
