Tax Foundation Honors 2 Texas Legislators for Margins tax Reform

Texas Senator Jane Nelson (R) and Texas Representative Dennis Bonnen (R) led the charge to significantly reduce Texas’ problematic Margin Tax, a modified gross receipts tax that is a dark mark in Texas’ otherwise well-structured tax code. For 2016, Texas businesses face rates reduced by 21 percent, from 0.95 percent to 0.75 percent (and prevented an otherwise scheduled increase to 1 percent), and extended eligibility and reduced the rate for EZ computation. HB 32 also includes language of the legislature’s intent to repeal the Margin Tax in future sessions.

Tax Foundation | 2015 Outstanding Achievement in State Tax Reform Awards