85S10847 SMT-D
By: Burkett H.B. No. 350
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of
income-producing tangible personal property owned by certain small
businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.143 to read as follows:
Sec. 11.143. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
OWNED BY SMALL BUSINESS. A business that employs 500 or fewer
employees is entitled to an exemption from taxation of the tangible
personal property that is owned by the business and that is held or
used by the business for the production of income.
SECTION 2. Section 11.42(b), Tax Code, is amended to read as
follows:
(b) An exemption authorized by Section 11.11 or 11.143 is
effective immediately on qualification for the exemption.
SECTION 3. Section 11.43(a), Tax Code, is amended to read as
follows:
(a) To receive an exemption, a person claiming the
exemption, other than an exemption authorized by Section 11.11,
11.12, 11.14, 11.143, 11.145, 11.146, 11.15, 11.16, 11.161, or
11.25 [of this code], must apply for the exemption. To apply for an
exemption, a person must file an exemption application form with
the chief appraiser for each appraisal district in which the
property subject to the claimed exemption has situs.
SECTION 4. Section 11.143, Tax Code, as added by this Act,
applies only to a tax year beginning on or after January 1, 2018.
SECTION 5. This Act takes effect January 1, 2018, but only
if the constitutional amendment proposed by the 85th Legislature,
1st Called Session, 2017, authorizing the legislature to exempt
from ad valorem taxation income-producing tangible personal
property owned by certain small businesses is approved by the
voters. If that amendment is not approved by the voters, this Act
has no effect.