June 26, 2025

Waco Welcomes Potential Tax Relief for Small Businesses

News Summary

Waco’s local entrepreneurs are abuzz with possibilities as Texas considers a substantial hike in the business personal property exemption. If passed, this increase could rise from $2,500 to $250,000, allowing small businesses to reallocate funds and possibly enhance hiring and wages. Though this initiative brings hope, city officials warn it could impact the budget with an estimated loss of $1.7 million. With upcoming legislative changes on tax cuts also in focus, the small business community remains optimistic about what’s ahead.

Texas small businesses may soon receive substantial tax relief thanks to a proposed increase in the business personal property exemption, which aims to raise the threshold from $2,500 to $250,000. This suggested change is part of House Bill 9, a legislative initiative highlighted by Governor Abbott, designed to bolster small business growth across the state.

Supporters of the proposal, including small business owners, believe that the exemption increase could significantly ease the financial burdens faced by many enterprises. The owner of Marie’s Wine Bar in Waco expressed that this change could be a pivotal moment for small businesses, potentially allowing them to redirect funds typically used for tax obligations into operational enhancements. These improvements could facilitate hiring more staff or increasing wages, enhancing employees’ wellbeing and overall business performance.

The proposed exemption would particularly benefit businesses with tangible assets such as furniture and equipment, giving them more breathing room in their financial planning. However, concerns have arisen regarding the fiscal impact on local governments. Waco’s Chief Financial Officer warned that if the exemption increase is enacted, the city could stand to lose about $1.7 million in revenue, which may hamper city services and infrastructure funding.

In a related discussion, U.S. Senator John Cornyn recently visited Central Texas to converse with local business owners regarding the implications of the 2017 Tax Cuts and Jobs Act. As it stands, several provisions of this act are set to expire this year, creating a pressing need for lawmakers to consider extensions or replacements. Cornyn spoke with operators from Sticker Universe, United Truck Equipment Company, George’s restaurant, and M. Lipsitz & Co. during a roundtable event, where these business owners highlighted the positive effects of the tax cuts, noting improvements in employee retention, wage increases, and capacity for new investments.

Senator Cornyn acknowledged the delicate balance lawmakers face in combining tax reductions with the funding requirements necessary to meet public needs. He pointed out that should the tax cuts expire, up to 62% of Americans could see increased tax bills, which would negatively impact both businesses and residents alike. In a bid to mitigate this fallout, Cornyn intends to draft a new tax cut proposal by July 2025, aiming to integrate the insights gathered from local entrepreneurs. This initiative is critical, as the expiration of current tax provisions could mean an average tax hike of $3,000 for Texans.

Furthermore, the timing of these discussions is significant, as Cornyn will be running for re-election in 2026 against Texas Attorney General Ken Paxton. The senator’s campaign may be influenced by his stance and actions concerning tax relief, particularly in a state where small businesses play a crucial role in the economy.

In summary, the potential for increased business personal property exemption in Texas marks a significant opportunity for local small businesses to thrive amid ongoing economic challenges. While the proposed legislation holds promise for alleviating financial pressure, local governments will need to address the potential revenue losses that could arise. The broader conversation surrounding tax relief initiatives continues to be a crucial topic, particularly with the impending expiration of the Tax Cuts and Jobs Act, as Texas businesses and constituents await decisive actions from lawmakers.

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Author: STAFF HERE GEORGETOWN

GEORGETOWN STAFF WRITER The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.