FOR IMMEDIATE RELEASE 04/03/2008
Craddick appoints Chisum and Crownover to the Business Tax Advisory Committee
(AUSTIN) - Speaker Tom Craddick (Midland), today, announced the appointment of Reps. Warren Chisum (Pampa) and Myra Crownover (Denton) to the Business Tax Advisory Committee, which will conduct a biennial study of the effects of the revised franchise tax on Texas businesses.
"As a leader in the implementation of the franchise tax, Rep. Chisum will provide expertise on the many issues that will come before this committee," Speaker Craddick said. "Rep. Crownover's experience as a small business owner will be an invaluable contribution to this committee as it studies the impact of this tax on Texas businesses."
In 2006, the Texas legislature restructured the state's franchise tax to ensure that each business pays its fair share of education costs. The tax was expanded to include newly taxed entities, thus changing how the tax is to be calculated. Under the new franchise tax, generally all partnerships (except general partnerships of natural persons), associations, business trusts, limited liability companies and corporations must pay a tax. This is now the primary source of funds used to buy down property tax rates. An additional $3 billion will be generated annually from businesses.
In 2007, the Business Tax Advisory Committee was established in the business tax technical corrections bill (HB3928). The purpose of the committee is to study the effects of the new business tax and issue a report to the legislature and the governor at the beginning of each regular session. The committee expires on January 31, 2013.
The Business Tax Advisory Committee consists of twenty members. The lieutenant governor and the speaker each appoint two members from their respective chambers. The comptroller serves as an ex-officio member and appoints sixteen members, including fourteen state residents who are employees or owners of private businesses that are subject to the revised franchise tax, and two residents of this state with expertise in state business taxation.
Rep. Chisum is serving his tenth term as the state representative from District 88. He is chair of the House Appropriations Committee, and he also sits on the House Energy Resources Committee.
Rep. Crownover is serving her fourth term as the state representative from District 64. She is a member of the House Appropriations Committee, she serves as the chair of budget and oversight on the House Energy Resources Committee, and she is a member of the Calendars Committee.
Alexis DeLee or Chris Cutrone at 512-463-0223