MCLENNAN COUNTY, Texas (KXXV) — Texas small businesses could see significant tax relief if the business personal property exemption increases from $2,500 to $250,000.
- Texas is considering increasing the business personal property tax exemption from $2,500 to $250,000.
- The proposal is part of House Bill 9 and Governor Abbott's initiative to support small businesses.
- Sidney Warren, owner of Marie's Wine Bar in Waco, called it a potential "game changer" for small businesses.
- City officials warn the tax burden may shift to residential property owners.
BROADCAST TRANSCRIPT:
A potential increase in the business personal property tax exemption from $2,500 to $250,000 could provide significant relief to small business owners in Texas.
Sidney Warren, owner of Marie's Wine Bar on Austin Avenue, believes the proposed change in House Bill 9 could transform how small businesses operate.
"That could be a game changer, really, for some businesses," Warren said.
The substantial increase in the exemption is part of Governor Abbott's initiative to boost small businesses across the state. Governor Abbott said this in a statement,
"The Texas economy is better than ever before, This session, we took strategic steps to boost small businesses in Texas. Even the smallest of barriers can increase the cost of doing business. We want to make it easier and less costly for businesses in Texas, especially our small business owners."
For business owners, the tax relief could translate to operational improvements.
"When you're not paying taxes on it, you know you can do more inside your business," Warren said.
With reduced tax obligations, Warren suggests businesses could expand their workforce or improve compensation.
"So now maybe you can hire another person, or maybe you can increase the pay along the lines," Warren said.
While the exemption would benefit entrepreneurs dealing with furniture, equipment, and various tax obligations, Waco's Chief Financial Officer warns of potential consequences for the city budget.
"Good for our businesses out there, it helps a lot of small businesses, but what that does is, it shifts some of that burden onto the property tax payers on the residential side," the CFO said.
According to Waco officials, the city could lose approximately $1.7 million in revenue if the exemption increase is approved.
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