El Paso businesses hopeful as Texas law exempts $125K inventory from taxes

EL PASO, TEXAS (KFOX14/CBS4) — Small businesses in El Paso are hopeful as a new Texas law promises significant tax relief.

House Bill 9, set to take effect in the new year, exempts businesses from paying taxes on up to $125,000 worth of inventory, including city, county, and school district taxes.

Sarah Miller, owner of Margin Notes Book Bar, expressed relief at the change.

“It’s huge because now instead of having that stress of having to pay those taxes on this inventory, we can just be stress free on that and use that money for better wages for employees, hiring more employees if we need a bigger inventory,” she said.

The law aims to support local businesses, which are vital to the economy, according to Tom Fullerton, a UTEP economics professor.

“The small businesses play an important part of local economy, not only in terms of providing goods and services to customer and households but also in terms of jobs and economic activity,” Fullerton said.

However, the state estimates the exemption could cost more than $442 million by 2027 if tax rates remain unchanged, potentially impacting taxpayers.

Despite the uncertainty, Miller remains hopeful.

“Do I want it to end tomorrow? No. I would love to do this for another few years or, you know, however long God allows me to do it,” she said.

KFOX14/CBS4 reached out to the city of El Paso and the county, however they have not yet commented on how the law might affect their finances or budget.

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