87R2695 SMT-D
By: Shine H.B. No. 987
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of all or a
portion of the value of a person's income-producing tangible
personal property depending on the value of the property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.145, Tax Code, is amended to read as
follows:
Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
HAVING VALUE OF LESS THAN $5,000 [$500]. (a) A person is entitled
to an exemption from taxation of the tangible personal property the
person owns that is held or used for the production of income if the
[that] property is listed in a single account maintained by the
appraisal district that appraises the property and the total [has
a] taxable value of all property listed in the account is less than
$5,000 [$500].
(b) The exemption provided by Subsection (a) applies to each
separate taxing unit in which a person holds or uses tangible
personal property for the production of income[, and, for the
purposes of Subsection (a), all property in each taxing unit is
aggregated to determine taxable value].
(c) A person may receive more than one exemption under
Subsection (a).
SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by
adding Section 11.1455 to read as follows:
Sec. 11.1455. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
HAVING VALUE OF $5,000 OR MORE AND LESS THAN $500,000. (a) A person
is entitled to an exemption from taxation of a portion of the value
of the tangible personal property the person owns that is held or
used for the production of income if the property is listed in a
single account maintained by the appraisal district that appraises
the property and the total taxable value of all property listed in
the account is $5,000 or more and less than $500,000. The amount of
the exemption is equal to 20 percent of the total taxable value of
all property listed in the account.
(b) The exemption provided by Subsection (a) applies to each
separate taxing unit in which a person holds or uses tangible
personal property for the production of income.
(c) A person may receive more than one exemption under
Subsection (a).
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, 11.141, 11.145, 11.1455, 11.146, 11.15, 11.16,
11.161, or 11.25, 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. This Act applies only to ad valorem taxes imposed
for a tax year beginning on or after the effective date of this Act.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect January 1, 2022.
(b) Section 11.1455, Tax Code, as added by this Act, and
Section 11.43(a), Tax Code, as amended by this Act, take effect
January 1, 2022, but only if the constitutional amendment proposed
by the 87th Legislature, Regular Session, 2021, authorizing the
legislature to exempt from ad valorem taxation a portion of the
value of a person's income-producing tangible personal property if
the property has a value within a specified range of values is
approved by the voters. If that amendment is not approved by the
voters, Section 11.1455, Tax Code, as added by this Act, and Section
11.43(a), Tax Code, as amended by this Act, have no effect.