BILL ANALYSIS S.B. 1449 By: Bettencourt Ways & Means Committee Report (Unamended) BACKGROUND AND PURPOSE There are concerns that the business personal property tax is unfair and unevenly applied and that the fiscal and administrative burden of paying the tax disproportionately affects small businesses in Texas. Furthermore, it has been observed that the cost of appraisal and collection of the business personal property tax exceeds the tax revenue received, resulting in inefficient use of appraisal district and tax assessor resources. S.B. 1449 seeks to address this issue by increasing the maximum value of income-producing tangible personal property that is eligible for a property tax exemption. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS S.B. 1449 amends the Tax Code to increase from $500 to $2,500 the taxable value threshold below which income-producing tangible personal property is eligible for a property tax exemption. EFFECTIVE DATE January 1, 2022.
BILL ANALYSIS
# BILL ANALYSIS
S.B. 1449
By: Bettencourt
Ways & Means
Committee Report (Unamended)
S.B. 1449
By: Bettencourt
Ways & Means
Committee Report (Unamended)
BACKGROUND AND PURPOSE There are concerns that the business personal property tax is unfair and unevenly applied and that the fiscal and administrative burden of paying the tax disproportionately affects small businesses in Texas. Furthermore, it has been observed that the cost of appraisal and collection of the business personal property tax exceeds the tax revenue received, resulting in inefficient use of appraisal district and tax assessor resources. S.B. 1449 seeks to address this issue by increasing the maximum value of income-producing tangible personal property that is eligible for a property tax exemption.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS S.B. 1449 amends the Tax Code to increase from $500 to $2,500 the taxable value threshold below which income-producing tangible personal property is eligible for a property tax exemption.
EFFECTIVE DATE January 1, 2022.
BACKGROUND AND PURPOSE
There are concerns that the business personal property tax is unfair and unevenly applied and that the fiscal and administrative burden of paying the tax disproportionately affects small businesses in Texas. Furthermore, it has been observed that the cost of appraisal and collection of the business personal property tax exceeds the tax revenue received, resulting in inefficient use of appraisal district and tax assessor resources. S.B. 1449 seeks to address this issue by increasing the maximum value of income-producing tangible personal property that is eligible for a property tax exemption.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
S.B. 1449 amends the Tax Code to increase from $500 to $2,500 the taxable value threshold below which income-producing tangible personal property is eligible for a property tax exemption.
EFFECTIVE DATE
January 1, 2022.