Positive News on Margin Tax Legislation

Representative Harvey Hilderbran (R-Kerrville), chairman of the House Ways & Means Committee, has developed an omnibus Margin Tax reform bill that includes several changes sought by various industries.  Included in this bill, HB 500, is an exclusion from gross revenue for purposes of the Margin Tax payments received from a tenant of commercial real property for ad valorem taxes and any tax or excise imposed on rents.  While this language does not fully address all of the funds a commercial landlord receives from a tenant via pass-through, it is better than the current system, where all the funds are included in gross revenue.

HB 500 was voted out of the House Ways & Means Committee.  The next step is for the legislation to go through the House Calendars committee, which has the power to either set a bill on a calendar so the full House can consider it, or to kill the bill and prevent it from coming before the chamber. 

At this point, it is a race against the clock to pass the bill.  We have 34 days left in the session, and the House rules require a House Bill to be voted on by the full chamber no later than Thursday, May 9.  If that is accomplished, the bill goes to the Senate, where they must pass it before May 23.

We will continue to work on this legislation and keep you updated. #tb