With Texas lawmakers seeing a $33 billion budget surplus, many Texas business owners are hoping the state can afford to cut them a break when it comes to a tax that few other states impose.
Among those business owners is Tim Green, who owns Fox Scientific in Alvarado. It is a small business of about 25 employees and a large warehouse storing industrial laboratories and equipment -- inventory items Green must pay property tax on.
"Texas is a great state to own and operate a small business in, right? But we can't be complacent that we are just great," Green said. "Take for example, if we load up on inventory and a customer quits buying it. Guess what? We get to keep paying that tax on it."
According to the National Federation of Independent Business, Texas is one of nine states that still has an inventory tax. State Sen. Drew Springer, (R-Muenster), is writing a bill to eliminate it.
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“I think this is a great way of giving some of those tax dollars back to Texans,” said Springer. “With inflation this year that we are seeing, I think anything we can do to eliminate taxes, let businesses be more competitive, they'll compete against each other and the consumer really benefits in the end.”
For Green, who took a hit to his business during COVID-19, any relief would be helpful.
“Every little bit helps, yes, absolutely,” said Green.
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“With a roughly $33 billion budget surplus, small business owners are eager for the Texas Legislature to pass needed reforms to keep the Lone Star State competitive and open for business," said National Federation of Independent Business Director Annie Spilman in a statement regarding property tax relief. "From cutting the inventory tax to ensuring regulatory consistency, there is work to be done to shore up Main Street’s recovery, which continues to battle historically high inflation, a worker shortage, and a looming recession. We look forward to working with the Legislature on behalf of small businesses.”
