From the Office of State Senator Dan Patrick

For Immediate Release
June 5, 2008

Contact: Logan Spence
(512) 463-0107 / (512) 461-3448

Senator Patrick asks Governor Perry to help delay the new franchise tax

AUSTIN - This morning, Senator Dan Patrick sent the following letter to Governor Perry requesting support to delay the payment of the new franchise tax due on June 15. He also copied every member of the legislature.

"I am very concerned that the new franchise tax is about to do permanent damage to the business community of Texas. That is why I am asking the Governor to support my proposal to delay the initial filings and give businesses more time to submit more reliable information," stated Senator Patrick.

Senator Patrick suggests that the state use the Rainy Day Fund and perhaps the surplus to cover the debts that must be paid while the franchise tax is delayed. Once the franchise taxes are paid at the end of the year, the Rainy Day Fund would be compensated and the surplus could be returned.

"June 15 is going to be a rainy day for Texas businesses and we should use every resource available to avoid harming the backbone of our economy," said Senator Patrick.