| 1 | 1 | | 88R8740 TJB-D |
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| 2 | 2 | | By: Raney H.B. No. 1994 |
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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 a percentage of |
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| 8 | 8 | | the appraised value of the tangible personal property a person owns |
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| 9 | 9 | | that consists of inventory held for sale at retail. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | ARTICLE 1. PROVISIONS APPLICABLE BEGINNING WITH 2024 TAX YEAR |
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| 12 | 12 | | SECTION 1.01. Subchapter B, Chapter 11, Tax Code, is |
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| 13 | 13 | | amended by adding Section 11.36 to read as follows: |
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| 14 | 14 | | Sec. 11.36. RETAIL INVENTORY. (a) A person is entitled to |
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| 15 | 15 | | an exemption from taxation of the following percentages of the |
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| 16 | 16 | | appraised value of the tangible personal property the person owns |
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| 17 | 17 | | that consists of inventory held for sale at retail and for which the |
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| 18 | 18 | | person is not otherwise entitled to an exemption from taxation: |
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| 19 | 19 | | (1) for the 2024 tax year, 20 percent of the appraised |
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| 20 | 20 | | value of the inventory; and |
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| 21 | 21 | | (2) for the 2025 tax year, 50 percent of the appraised |
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| 22 | 22 | | value of the inventory. |
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| 23 | 23 | | (b) This section expires January 1, 2026. |
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| 24 | 24 | | SECTION 1.02. This article applies only to the 2024 and 2025 |
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| 25 | 25 | | ad valorem tax years. |
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| 26 | 26 | | SECTION 1.03. This article takes effect January 1, 2024, |
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| 27 | 27 | | but only if the constitutional amendment proposed by the 88th |
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| 28 | 28 | | Legislature, Regular Session, 2023, to authorize the legislature to |
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| 29 | 29 | | exempt from ad valorem taxation a percentage of the market value of |
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| 30 | 30 | | the tangible personal property a person owns that consists of |
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| 31 | 31 | | inventory held for sale at retail is approved by the voters. If |
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| 32 | 32 | | that amendment is not approved by the voters, this article has no |
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| 33 | 33 | | effect. |
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| 34 | 34 | | ARTICLE 2. PROVISIONS APPLICABLE BEGINNING WITH 2026 TAX YEAR |
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| 35 | 35 | | SECTION 2.01. Subchapter B, Chapter 11, Tax Code, is |
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| 36 | 36 | | amended by adding Section 11.36 to read as follows: |
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| 37 | 37 | | Sec. 11.36. RETAIL INVENTORY. A person is entitled to an |
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| 38 | 38 | | exemption from taxation of 75 percent of the appraised value of the |
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| 39 | 39 | | tangible personal property the person owns that consists of |
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| 40 | 40 | | inventory held for sale at retail and for which the person is not |
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| 41 | 41 | | otherwise entitled to an exemption from taxation. |
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| 42 | 42 | | SECTION 2.02. This article applies to an ad valorem tax year |
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| 43 | 43 | | that begins on or after January 1, 2026. |
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| 44 | 44 | | SECTION 2.03. This article takes effect January 1, 2026, |
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| 45 | 45 | | but only if the constitutional amendment proposed by the 88th |
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| 46 | 46 | | Legislature, Regular Session, 2023, to authorize the legislature to |
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| 47 | 47 | | exempt from ad valorem taxation a percentage of the market value of |
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| 48 | 48 | | the tangible personal property a person owns that consists of |
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| 49 | 49 | | inventory held for sale at retail is approved by the voters. If |
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| 50 | 50 | | that amendment is not approved by the voters, this article has no |
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| 51 | 51 | | effect. |
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