Texas Margin Tax - an overview

In 2006 legislation was enacted in the State of Texas that redefined the Texas Franchise Tax. The revised Franchise Tax is designed to generate income to offset the anticipated reduction of income from the rollback of school district property tax.

  • Virtually all entities offered asset protection by the state of Texas with a tax liability more than $1,000 or revenue more than $600,000 will be affected by the tax.

The new Franchise Tax will be applicable for reports due on or after January 1, 2008. However, it will be effective for all transactions completed after January 1, 2007. That means that the time for you to prepare to minimize that tax is now.

If you would like to read a more detailed description of the tax please click here. We also suggest you contact Christopher Ford at 214.827.9118 and schedule a time for us to get together to discuss ways to reduce your liability.

IRS CIRCULAR 230 REQUIRED NOTICE
IRS Regulations require that we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended to be used and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code or for the purpose of promoting, marketing or recommending to another party any transaction or tax-related matter.