WASHINGTON, D.C. – Texas Governor Greg Abbott has signed into law a budget bill that includes a provision repealing the state’s longstanding $200 per person yearly occupation tax which included registered representatives, independent financial advisors and others. The Financial Services Institute (FSI) has been working on this fix for advisors throughout this year.
The occupation tax was initially imposed in 1991 when most professional businesses were not subject to the franchise tax. However, in 2006 the franchise tax was significantly changed to incorporate all of the professional groups paying the occupation tax, including independent financial advisors who also pay state registration fees.
“The repeal of the occupation tax is a victory for FSI members,” said FSI President & CEO Dale Brown. “We applaud Governor Abbott, bill sponsors State Representative Drew Darby and State Senator Jane Nelson and the rest of the state legislators for listening to and working with our members and other professionals in Texas impacted by this duplicative tax.”
“This is a very positive development for Texas financial advisors, as well as other professionals in the state,” said FSI Board Member Dean Harman, CFP®, Harman Wealth Management in The Woodlands, Texas. “As a small business owner, I thank Governor Abbott and the state legislature for removing this unnecessary financial burden on Texas professionals.”
FSI members actively lobbied for the repeal during FSI’s Texas State Capitol Day in April during which FSI members from across the state met with over 30 state legislators asking for their support in repealing the occupation tax.