Austin, TX – In the 2nd called Special Session of the 88th Legislature in 2023, Senator Bettencourt (R-Houston) passed SB 2, which provided historic property tax reductions, and SB 3, which doubled the franchise tax exemption taking around 67,000 Texas small and mid-sized businesses (SMBs) off the franchise tax roll, and eliminated the requirement to file a ‘No Tax Due’ form. SB 3 also eliminated the administrative burden of filing a ‘No Tax Due’ franchise tax return for 2.178 million SMBs. Senator Bettencourt was the author of SB 2 and SB 3, which were sponsored in the House by Representatives Meyer and Geren, respectively, and passed the Senate unanimously and in the House by large margins.

"The great news is that we are not only seeing homeowners benefit from property tax reduction, but also Texas business owners! SB 3 has doubled the franchise tax exemption eliminating franchise tax liability for about 67,000 small to midsize business owners," stated Senator Bettencourt.

SB 2 is providing non-homestead property owners an estimated $4.2 billion per year of school district tax rate compression, and SB 3 is providing $300 million per year of franchise tax relief. This comes to a total of $4.5 billion per year in tax relief for Texas business and property owners.

Senator Tan Parker, the SB 3 joint author, said the new law will save businesses time and money, stating: "We have given businesses across Texas an entire day of their time back by eliminating the burdensome administrative calculations and paperwork they would have had to file even with No Tax Due. These franchise tax savings, alongside one of the largest ISD tax rate reductions in Texas history, demonstrate the real and significant commitment the legislature has made to keep Texas the number one state for business in the country."