New on The McTexLaw Business Owner’s Resource Center:

Special Alert: 2003 Legislative Tracking Center for Business Owners

The mayhem in Austin is in full swing, and we are keeping track of the games which are afoot. Several filed bills would directly affect business owners, from those addressing employment discrimination, to interest rate limitations on certain loans, to bills giving parties more rights to collect attorneys fees in lawsuits. Most importantly, though, and tops on the “to do” list for legislators, is resolving the budget shortfall. And “No new taxes” does not mean no new taxes. One key area the Legislature is looking at to raise additional revenue is the Texas franchise tax. As you know, corporations and limited liability companies both pay franchise taxes, limited partnerships don’t. There are at least 3 major bills that would change this to varying degrees. The governor is on record as supporting at least one of those bills. Will it affect you? Click the headline to read a more in-depth review of the significant bills we are tracking for our business owner clients.

Also, check out our 2003 Legislative Tracking Center which has a list of the important legislative dates/deadlines for this session, and a chart of the bills we are tracking, hotlinked to the actual bills, grouped by subject, with descriptions of each bill, its status in the legislative process, and additional comments and analysis by Mark McPherson, at www.mctexlaw.com/2003legislation.asp. Bookmark that page and come back often to see what bills are moving towards becoming “the law.”

New on The McTexLaw Commercial Real Estate Resource Center:

Special Alert: 2003 Legislative Tracking Center for Real Estate

Austin is extremely busy this legislative session with real estate-related bills. Of all the topics of bills I am tracking, the single largest topic is “land use,” as the State fights urban sprawl. In fact, this entire area of the law is becoming known as “sprawl law,” which sounds sexier than zoning law. We also have major bills filed affecting general contractor/subcontractor liability, contractor liability to owners, dispute resolution procedures, a contingent payment bill that resulted from formal mediation between representatives of general contractors and subcontractors and which is a very heavily lobbied bill, bills affecting landlord/tenant relationships, and recreational land use liability (as in hunting). Click the headline for a more in-depth review of the important real estate bills we are tracking for you.

Also, check out our 2003 Legislative Tracking Center which has a list of the important legislative dates/deadlines for this session, and a chart of the bills we are tracking, hotlinked to the actual bills, grouped by subject, with descriptions of each bill, its status in the legislative process, and additional comments and analysis by Mark McPherson, at www.mctexlaw.com/2003legislation.asp. Bookmark that page and come back often to see what bills are moving towards becoming “the law.”

TAX FREEDOM DAY

Have you ever wondered, for any given year, how many days you spend earning the money to pay the various necessities and other pleasantries of your life? The think-tank Tax Foundation has done just that, and you’ll never guess what tops the list as taking the most days out of your year in 2003. Well, having just hit April 15, maybe you’d be tempted to put federal taxes at No. 1, and you’d be right. In 2003, it took an estimated 74 days to earn enough to pay your taxes, more than any other major household budget item. That put your “Tax Freedom Day” at April 19. If you think that’s bad news, consider that’s 8 days better than we were doing in 2001, and 11 days earlier than in 2000. Why this improvement? Lower taxes due to the recent federal tax reductions, and a slower economy.

Looking ahead, Tax Freedom Day 2004 is expected to be April 20 under current law, but it could be April 18 if Bush’s currently proposed tax cut is passed. The effect of this tax cut really takes shape over the next few years, with current law resulting in a Tax Freedom Day in the range of April 22-24 over the next 5 years, while Tax Freedom Day under the proposed tax cut dipping to April 16 in 2004, and then gradually extending to April 21, 2-3 days less than without it. Talk about putting this proposed tax cut into “real world” terms.

Now let’s get local. Every state taxes individuals differently (income, sales, property, etc.). When state/local tax burdens are combined with the federal tax burden, the cold nethers of Alaska really aren’t so bad a place to be after all, since it has the lightest local tax burden, and a Tax Freedom Day on March 30. The worst? Not Texas, not by a long shot. Connecticut leads the nation in this unfortunate category, with the latest Tax Freedom Day, May 14. That’s about 6 weeks shy of half the entire year! Texas ranks No. 30 (of 50) behind Connecticut, with a Tax Freedom Day of April 13. We share that day with Hawaii, Kansas, and North Carolina.

In case you were wondering how you will spend the rest of your time in 2003, it is estimated that, on average, Americans will work these number of days to earn the money spent on these major household items:

For more information about Tax Freedom Day or the Tax Foundation, visit their website at www.taxfoundation.com.

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McTexLaw Email Alerts are original writings of Mark McPherson, principal attorney of the firm.
© 2003, J. Mark McPherson. All rights reserved.