In his State of the State address at the beginning of the year, Texas Governor Greg Abbott tasked the Legislature with enacting meaningful business tax relief. The Legislature responded by reducing the franchise (also called the margin) tax rate and creating new exemptions and incentives for sales tax. At the same time, however, the Legislature cut funding for several economic incentive programs and added an additional layer of review by creating an Economic Incentive Oversight Board.
In their article for State Tax Notes, Sutherland attorneys Leah Robinson and Olga Jane Goldberg discuss recent tax changes in Texas and conclude that the Legislature at least partially fulfilled the governor’s request to cut taxes.
View the full article reprinted from the August 31, 2015, issue of State Tax Notes.