Texas State Senator Files Bill to Provide Tax Relief to Small Businesses

February 6, 2007

State Rep. Harvey Hilderbran (Kerrville) has filed House Bill 1022 and House Joint Resolution 54 which clarify that personal vehicles used for the production of income are exempt from ad valorem taxation.

“Most small business owners and professionals use their personal vehicles for both personal and business purposes,” Rep. Hilderbran said in an announcement. “This mixed use should not warrant an additional tax burden. My bill and the accompanying joint resolution will give much needed tax relief to an already overburdened small-business owner in Texas. Everyone from independent lawn maintenance service people to real estate agents to CPAs will benefit from this personal vehicle tax exemption.”

During the 2005 legislative session, Rep. Hilderbran passed legislation that business owners are no longer required to render a personal vehicle for ad valorem purposes. However, since the legislation was passed and signed into law, the Texas attorney general has issued an opinion stating personal vehicles used in the production of income are still taxable unless specifically exempt from taxation in the Texas Constitution.

“This legislation is necessary to clear up any confusion created by the AG opinion that Texans should not pay an unfair tax simply because they use their personal vehicle in the day-to-day course of doing business,” Rep. Hilderbran said.

HB 1022 and HJR 54 are also joint authored by Ways and Means Chairman Jim Keffer (Eastland), Rep. John Otto (Dayton), Rep. Trey Martinez Fischer (San Antonio) and Rep. Robert “Robby” Cook (Eagle Lake).

Rep. Hilderbran represents House District 53 which includes the following counties: Crockett, Sutton, Schleicher, Real, Kerr, Kimble, Menard, Mason, Llano, San Saba, McCulloch, Concho, Coleman, Runnels and Callahan. Hilderbran also chairs the Committee on Culture, Recreation and Tourism and was recently appointed to the Committee on Natural Resources.

Source: Texas House of Representatives

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