Texas small businesses could experience significant tax relief if a proposed increase in the business personal property tax exemption is approved. The exemption could rise from $2,500 to $250,000, as part of House Bill 9 and Governor Greg Abbott’s initiative to support small businesses.
Sidney Warren, owner of Marie’s Wine Bar in Waco, described the proposal as a potential “game changer” for local entrepreneurs. “That could be a game changer, really, for some businesses,” Warren said. The proposed increase is designed to alleviate operational costs for small businesses, allowing them to reinvest in their operations.
Governor Abbott emphasized the importance of minimizing barriers for small businesses, stating, “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 small business owners, the tax relief could translate into tangible improvements such as workforce expansion and enhanced employee compensation. “When you’re not paying taxes on it, you know you can do more inside your business,” Warren added. “So now maybe you can hire another person, or maybe you can increase the pay along the lines.”
However, city officials caution that the increased exemption could shift the tax burden to residential property owners. Waco’s Chief Financial Officer warned that the city could face a $1.7 million loss in revenue if the exemption is enacted. “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 explained.
