Greg Abbott, Governor of Texas, recently signed H.B. 32 in order to permanently reduce the Texas franchise tax rate (Margin Tax) for reports due on or after January 1, 2016.
The applicable report rates beginning in 2016 are as follows:
- The EZ tax rate of 0.331% maybe use (elected) for entities with taxable revenue (margin) of $20 million or less.
- The tax rate will be 0.375% of taxable income for taxpayers who are primarily engaged in the retail and wholesale trade.
- For all other taxpayers beginning in 2016 the Texas franchise reporting rate will be 0.75% of taxable revenue.
Seek the services of a legal or tax adviser before implementing any ideas contained in this blog. To reach a financial advisor at Lane Gorman Trubitt PLLC, call (214) 871.7500 or email email@example.com.