The governor’s office release details of a tax relief plan that provides benefits for small and large businesses alike. Before getting into specifics, Gov. Rick Perry took a moment to pause for those affected by the bombings that occurred during the Boston Marathon.
"I think all of us have friends and/or relatives up in Boston with the race going on so keep them in your prayers as we get the details," Perry said.
Perry listed a four-part plan to to provide over $1 billion in tax money to current businesses and out-of-state companies looking to re-locate.
"I’m calling for a 5 percent across the board cut to the existing franchise tax rate; this will apply to every business. Secondly, I’m calling for a $1 million business tax deduction for any company with annual revenues of $20 million or less," Perry said.
That would make a temporary $1 billion franchise tax exemption a permanent fixture for businesses.
The governor’s office estimates these cuts will take an estimated $1.6 billion away from the state’s property tax relief. Perry said the state would replenish that portion of the budget either using the state’s general revenue or from the so-called Rainy Day Fund.
Perry also wants to provide businesses with additional tax deductions when using the tax-filing EZ File online system.
For out-of-state companies looking to relocate, Perry said the state would deduct their moving expenses.