| 1 | 1 | | 87R2695 SMT-D |
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| 2 | 2 | | By: Shine H.B. No. 987 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an exemption from ad valorem taxation of all or a |
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| 8 | 8 | | portion of the value of a person's income-producing tangible |
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| 9 | 9 | | personal property depending on the value of the property. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 11.145, Tax Code, is amended to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY |
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| 14 | 14 | | HAVING VALUE OF LESS THAN $5,000 [$500]. (a) A person is entitled |
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| 15 | 15 | | to an exemption from taxation of the tangible personal property the |
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| 16 | 16 | | person owns that is held or used for the production of income if the |
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| 17 | 17 | | [that] property is listed in a single account maintained by the |
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| 18 | 18 | | appraisal district that appraises the property and the total [has |
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| 19 | 19 | | a] taxable value of all property listed in the account is less than |
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| 20 | 20 | | $5,000 [$500]. |
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| 21 | 21 | | (b) The exemption provided by Subsection (a) applies to each |
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| 22 | 22 | | separate taxing unit in which a person holds or uses tangible |
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| 23 | 23 | | personal property for the production of income[, and, for the |
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| 24 | 24 | | purposes of Subsection (a), all property in each taxing unit is |
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| 25 | 25 | | aggregated to determine taxable value]. |
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| 26 | 26 | | (c) A person may receive more than one exemption under |
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| 27 | 27 | | Subsection (a). |
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| 28 | 28 | | SECTION 2. Subchapter B, Chapter 11, Tax Code, is amended by |
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| 29 | 29 | | adding Section 11.1455 to read as follows: |
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| 30 | 30 | | Sec. 11.1455. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY |
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| 31 | 31 | | HAVING VALUE OF $5,000 OR MORE AND LESS THAN $500,000. (a) A person |
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| 32 | 32 | | is entitled to an exemption from taxation of a portion of the value |
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| 33 | 33 | | of the tangible personal property the person owns that is held or |
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| 34 | 34 | | used for the production of income if the property is listed in a |
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| 35 | 35 | | single account maintained by the appraisal district that appraises |
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| 36 | 36 | | the property and the total taxable value of all property listed in |
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| 37 | 37 | | the account is $5,000 or more and less than $500,000. The amount of |
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| 38 | 38 | | the exemption is equal to 20 percent of the total taxable value of |
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| 39 | 39 | | all property listed in the account. |
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| 40 | 40 | | (b) The exemption provided by Subsection (a) applies to each |
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| 41 | 41 | | separate taxing unit in which a person holds or uses tangible |
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| 42 | 42 | | personal property for the production of income. |
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| 43 | 43 | | (c) A person may receive more than one exemption under |
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| 44 | 44 | | Subsection (a). |
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| 45 | 45 | | SECTION 3. Section 11.43(a), Tax Code, is amended to read as |
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| 46 | 46 | | follows: |
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| 47 | 47 | | (a) To receive an exemption, a person claiming the |
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| 48 | 48 | | exemption, other than an exemption authorized by Section 11.11, |
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| 49 | 49 | | 11.12, 11.14, 11.141, 11.145, 11.1455, 11.146, 11.15, 11.16, |
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| 50 | 50 | | 11.161, or 11.25, must apply for the exemption. To apply for an |
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| 51 | 51 | | exemption, a person must file an exemption application form with |
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| 52 | 52 | | the chief appraiser for each appraisal district in which the |
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| 53 | 53 | | property subject to the claimed exemption has situs. |
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| 54 | 54 | | SECTION 4. This Act applies only to ad valorem taxes imposed |
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| 55 | 55 | | for a tax year beginning on or after the effective date of this Act. |
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| 56 | 56 | | SECTION 5. (a) Except as provided by Subsection (b) of this |
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| 57 | 57 | | section, this Act takes effect January 1, 2022. |
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| 58 | 58 | | (b) Section 11.1455, Tax Code, as added by this Act, and |
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| 59 | 59 | | Section 11.43(a), Tax Code, as amended by this Act, take effect |
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| 60 | 60 | | January 1, 2022, but only if the constitutional amendment proposed |
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| 61 | 61 | | by the 87th Legislature, Regular Session, 2021, authorizing the |
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| 62 | 62 | | legislature to exempt from ad valorem taxation a portion of the |
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| 63 | 63 | | value of a person's income-producing tangible personal property if |
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| 64 | 64 | | the property has a value within a specified range of values is |
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| 65 | 65 | | approved by the voters. If that amendment is not approved by the |
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| 66 | 66 | | voters, Section 11.1455, Tax Code, as added by this Act, and Section |
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| 67 | 67 | | 11.43(a), Tax Code, as amended by this Act, have no effect. |
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