AUSTIN - State Senator Van Taylor today filed S.B. 142, the Franchise Tax Simplification Act, offering Texas businesses a streamlined process for franchise tax calculations saving time and compliance costs.
"Taxes work best when they are low, simple, and fair. Unfortunately, the Franchise Tax system in Texas is so burdensome and complex that many businesses must keep two sets of books for state and federal taxes respectively," stated Taylor. "By allowing businesses the option to use their federal filing for state tax purposes, the Franchise Tax Simplification Act would significantly reduce the compliance costs required to maintain multiple accounting mechanisms. This simple change would let small businesses spend less time filling out paperwork and more time doing what they do best - creating jobs and growing our economy."
Designed to significantly reduce the administrative tax burden on businesses, The Franchise Tax Simplification Act allows companies the option to choose to use their federal cost of goods sold for state calculations for franchise tax purposes. This change would streamline and simplify business' compliance with the state's complex franchise tax. Allowing businesses to use an easier method to calculate their franchise taxes should help lower their accounting costs.
A seventh generation Texan, local small businessman, and decorated Marine Officer, Van Taylor serves the majority of Collin County and a portion of Dallas County in the Texas Senate where he is widely recognized as a conservative leader. Taylor serves as Vice-Chairman of both the Nominations Committee and the Sunset Advisory Commission. He is also as a member of the Education, Health and Human Services, and Transportation Committees as well as the interim Committee on Property Tax Reform and Relief. Van and his wife, Anne, married after his return from Iraq and are the proud parents of three young girls. Van and his family reside in Plano near the land his great-grandfather farmed during the Great Depression.