Texas House Bill HB4353

Texas 2019 - 86th Regular

Caption

Relating to the exemption from ad valorem taxation of income-producing tangible personal property having a value of less than a certain amount.

Impact

If enacted, HB4353 will significantly impact the state laws governing property taxation by increasing the exemption threshold for small-scale income-producing assets. As a result, property owners will face reduced tax liabilities on lower-value income-producing personal property, encouraging economic activity and investment at the local level. This change is expected to benefit many small businesses that might struggle with operational costs associated with low-value tangible assets that are nonetheless vital for their income generation.

Summary

House Bill 4353 proposes to amend the Texas Tax Code regarding the ad valorem taxation exemption for income-producing tangible personal property. Specifically, the bill seeks to raise the value threshold for tax exemption from $500 to $2,500. This adjustment is designed to provide financial relief to individuals and businesses that own income-generating property valued below this new threshold, potentially benefiting small businesses and entrepreneurs across the state.

Contention

The bill may evoke discussions and debates surrounding the implications of increasing the tax exemption threshold. Questions could arise regarding the potential loss of revenue for local governments that depend on ad valorem taxes. Advocates for the bill argue that the increase is necessary to ease the financial burden on small businesses, while opponents might argue that it could lead to a disproportionate impact on municipal budgets, potentially hindering public services funded by local taxation.