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According to a recent article from the Houston Business Journal, the ability to Texas companies to grow and flourish will soon be enhanced by a cut to an unpopular business tax.

The Texas franchise tax -- also known as the margins tax -- requires businesses who make over $1 million in revenue to pay tax on gross receipts, even if the company made little to no profit on those receipts, the article stated. However, a bill that recently passed the Senate finance committee would provide a 25 percent, across-the-board cut to the franchise tax. Additionally, the threshold to the flat-rate portion of the tax was raised from $10 million to $20 million. What this means is that businesses making from $1 million to $20 million in revenue can claim a tax rate of 0.331 percent.

According to the Senate Finance Chair, Jane Nelson, the bill will return more than $2.5 billion to Texas businesses and is a smart investment that will foster business growth and the ability to create more jobs. At the time of the report, the bill was moving forward for full Senate approval and is part of a tax package to be included in the final budget.

More money being returned to you by way of a tax cut may make the Houston office space you've been looking for in order to expand your business more affordable. Now is a great time to find quality office space and LandPark Commercial has the experience and the vast network to help you do that. For more information on the services we provide, contact us.