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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to an exemption from ad valorem taxation of a portion of |
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| 7 | 9 | | the appraised value of tangible personal property a person owns |
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| 8 | 10 | | that is held or used for the production of income. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. The heading to Section 11.145, Tax Code, is |
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| 11 | 13 | | amended to read as follows: |
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| 12 | 14 | | Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY |
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| 13 | 15 | | [HAVING VALUE OF LESS THAN $2,500]. |
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| 14 | 16 | | SECTION 2. Section 11.145(a), Tax Code, is amended to read |
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| 15 | 17 | | as follows: |
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| 16 | 18 | | (a) A person is entitled to an exemption from taxation of |
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| 17 | 19 | | $100,000 of the appraised value of tangible personal property the |
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| 18 | 20 | | person owns that is held or used for the production of income if |
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| 19 | 21 | | [that property has a taxable value of less than $2,500] they |
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| 20 | 22 | | annually submit a rendition statement under Section 22.01, Tax |
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| 21 | 23 | | Code. |
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| 22 | 24 | | SECTION 3. Section 22.01(j), Tax Code, is amended to read as |
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| 23 | 25 | | follows: |
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| 24 | 26 | | (j) Subsection (a) does not apply to property that is exempt |
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| 25 | 27 | | from taxation, other than property that is exempt under Section |
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| 26 | 28 | | 11.145. |
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| 27 | 29 | | SECTION 4. The changes in law made by this Act apply only to |
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| 28 | 30 | | an ad valorem tax year that begins on or after the effective date of |
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| 29 | 31 | | this Act. |
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| 30 | 32 | | SECTION 5. This Act takes effect January 1, 2026, but only |
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| 31 | 33 | | if the constitutional amendment proposed by the 89th Legislature, |
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| 32 | 34 | | Regular Session, 2025, to authorize the legislature to exempt from |
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| 33 | 35 | | ad valorem taxation a portion of the market value of tangible |
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| 34 | 36 | | personal property a person owns that is held or used for the |
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| 35 | 37 | | production of income is approved by the voters. If that amendment |
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| 36 | 38 | | is not approved by the voters, this Act has no effect. |
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