The McAllen Business Community is seeking legislation to reform and improve the current margin tax system aimed at a fair distribution of the tax burden and an adequate recognition of business expenses in the calculation process. The chamber’s goal is to provide a business and tax environment which further strengthens the foundation for the ongoing prosperity of businesses and business expansion and job creation.
The McAllen Chamber of Commerce supports any reform of the margin tax to more accurately reflect the operating realities of Texas businesses, encourage business creation, and limit the tax burden carried by them in a fashion which doesn’t threaten their economic vitality and also assists the state in maintaining its positive business climate.
- Support a graduated approach to the franchise (margin) tax for businesses that have sales less than $1 million.
- Support authorizing a business’s losses on the franchise (margin) tax to be carried forward for up to 10 years.
- Support an exemption from the franchise (margin) tax of all flow-through funds that are mandated by contract to be distributed to other entities.
- Support rebating to taxpayers any excess revenue collected from the franchise (margin) tax.
- Support allowing businesses that elect to subtract compensation in computing their taxable margin to include wages and cash compensation paid to independent contractors if the total revenue of that business is below $2 million.