AUSTIN – Lt. Gov. Dan Patrick issued this statement today following the passage of major tax cuts for small businesses, Senate Bill 32, by Sen. Paul Bettencourt, R-Houston:

“I have been fighting to deliver tax relief for Texans and our businesses long before I was elected to the Texas Senate. With the passage of SB 32, the business personal property tax exemption will be significantly increased, and more Texas businesses will be eligible to receive it, also benefitting from reduced compliance costs.

“Last regular legislative session, a previous version of this bill (SB 5) died in the Texas House. SB 32 is a priority of the Senate and mine this session to finally deliver the tax cut Texas small businesses deserve. I look forward to Speaker Burrows and the Texas House’s swift action on this critical legislation. I thank Senate Committee on Local Government Chair Paul Bettencourt for his continued leadership in reducing taxes for Texans.”

Senate Bill 32, by Sen. Paul Bettencourt, increases the business personal property tax exemption from $2,500 to $25,000. SB 32 also changes the business personal property tax exemption from a de minimis exemption to a universal exemption, meaning all businesses with business personal property can claim the exemption to reduce their tax liability.

SB 32 also provides a 20% inventory tax credit to reduce a business’s franchise tax liability. The total amount of credits that can be awarded in a state fiscal year is $500 million.

Senate Joint Resolution 81 is the constitutional amendment that must be approved by voters to codify the increase to the business personal property tax exemption from $2,500 to $25,000, and to change the exemption from a de minimis exemption to a universal exemption.