New margin tax discussed in Sherman

By: KXII-TV Staff Email
By: KXII-TV Staff Email

SHERMAN, Tex. -- Business owners in the state of Texas will soon be affected when a current tax law will expand starting at the first of the year.

Texas Legislators have reformed and expanded the franchise tax to become the new margin tax. Attorneys say loopholes in the old franchise tax allowed some businesses to get out of paying it. The new tax will include all modified gross receipts instead of only taxable capital and earned surplus. The margin tax will affect all Texas businesses.

Jennifer Patterson, an Austin attorney who works for legislation reform, helped create the new margin tax. She was in Sherman on Wednesday to present information to business owners and answers any questions they had.

"The old franchise tax had problems, specifically it was easy to circumvent. There was a negative impact to the state's revenue," Patterson said.

The new tax law is expected to affect 200,000 additional businesses.

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  • by charley Location: finley,ok on Dec 6, 2007 at 04:47 PM
    I can't believe our public officials would even consider adopting a special tax on people that attend strip clubs. This is wrong on so many levels. If taxes are to be levied on one form of dance they should be levied on all forms of dance. P.s. If Charlie Haldeman cannot report the news without injecting subtle hints of personel opinion he should be taken off the air. Charles A. Bailey

    Frankly, Mr. Bailey, I have no opinion on the tax. I do think it is unusual. Nothing subtle about that. -Charlie Haldeman
  • by J.D. Location: Sherman on Dec 6, 2007 at 10:10 AM
    My spin on it is... The "high" state tax dollars stay in Texas. The "high" fed tax dollars go to "who knows where." The reality is ,we are getting hammered with both!
  • by Ralph Location: Denison on Dec 5, 2007 at 09:57 PM
    Brought to you by the same folks that so easily convince their adoring followers that they are the champions of smaller government and lower taxes. Our state government is bigger than ever, collects more tax money than ever (far beyond that which would be expected due to natural growth), and in return we get tollroads, private prisons, and deteriorating roads and bridges, etc. Government cannot get smaller by words and broken promises accompanied by incompetence. We must elect people who can do the JOB well, not those who simply say what we want to hear. Only when the job is done well, can we reasonably expect relief.
  • by person Location: Texoma on Dec 5, 2007 at 08:08 PM
    I love tax margins. Let's see if we all remember this story for future reference... The old franchise tax (whatever that is) is now the new tax margin. Thank-you I think I fully understand now. It kind of goes along with "why do I have a home phone?" and what exactly is the inside line maintenance fee? I've had zero maintenance done to my inside lines...EVER! not to mention everything else that is painted gray on your tax bills. Don't you love it?????????
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