Texas House Bill HB1330

Texas 2017 - 85th 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

The proposed change is expected to have a noticeable impact on state revenue derived from property taxes, as more individuals and small businesses will qualify for the exemption. By raising the exemption limit, the bill provides financial relief to property owners, potentially enabling them to reinvest more into their operations or personal finances. Consequently, this could stimulate local economic growth, as businesses may have more capital to operate and expand.

Summary

House Bill 1330 aims to amend the Texas Tax Code by increasing the exemption limit for ad valorem taxation on income-producing tangible personal property. Specifically, the bill raises the threshold for these exemptions from $500 to $2,500. This increase is designed to alleviate the tax burden on property owners who hold income-generating assets below this newly established value, thereby supporting small businesses and individual entrepreneurs in Texas.

Contention

While the bill may be welcomed as beneficial by many property owners, there could be significant contention surrounding it, particularly from local governments that rely on property tax revenues. Critics may argue that lifting the tax burden on a swath of income-producing properties could lead to budget shortfalls at the local level, impacting services and infrastructure that depend on these funds. Thus, the debate may center around balancing the needs of local governments to fund public services with the need to support small businesses and incentivize economic growth.