Proposing a constitutional amendment authorizing the legislature to phase out by 2025 the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory.
Impact
The impact of HJR139 on existing state laws is significant, as it seeks to amend Article VIII of the Texas Constitution. By permitting the legislature to establish tax exemptions for inventory, the resolution would effectively change how public school funding is sourced through property taxes. This shift is intended to simplify the tax structure and potentially attract more businesses to Texas, as lower inventory taxation could improve the financial environment for companies managing stock.
Summary
HJR139 proposes a constitutional amendment that would allow the Texas legislature to phase out the ad valorem taxation imposed by school districts on tangible personal property classified as inventory by 2025. This bill aims to alleviate the tax burden on businesses while encouraging growth and investment in the state. It outlines a phased approach to increasing tax exemptions over several years, culminating in a full exemption by 2025, which is seen as a significant relief for property owners dealing with inventory taxes.
Contention
Notable points of contention surrounding HJR139 include concerns from public education advocates regarding the potential reduction in funding for schools that rely on ad valorem taxes. Critics argue that while the bill may stimulate business growth, it could simultaneously lead to budget shortfalls for school districts, adversely affecting education quality and resources. Proponents counter these concerns by emphasizing the long-term economic benefits that the exemption could foster, ultimately leading to increased overall funding through business growth.
Enabled by
Relating to the phasing out by 2025 of the ad valorem taxation by a school district of the tangible personal property a person owns that consists of inventory.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a percentage of the market value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation tangible personal property consisting of animal feed held by the owner of the property for sale at retail.
Relating to an exemption from ad valorem taxation of a percentage of the appraised value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment authorizing the legislature to exempt from ad valorem taxation income-producing tangible personal property having a value of less than a certain amount.
Proposing a constitutional amendment to authorize the legislature to exempt from ad valorem taxation a portion of the market value of tangible personal property a person owns that is held or used for the production of income.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.
Relating to the appraisal for ad valorem tax purposes of tangible personal property held for sale at retail and a franchise tax credit based on the ad valorem taxes paid on such property.