By: Bernal H.B. No. 5442
A BILL TO BE ENTITLED
AN ACT
relating to an exemption from ad valorem taxation of a portion of
the appraised value of tangible personal property a person owns
that is held or used for the production of income.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 11.145, Tax Code, is
amended to read as follows:
Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
[HAVING VALUE OF LESS THAN $2,500].
SECTION 2. Section 11.145(a), Tax Code, is amended to read
as follows:
(a) A person is entitled to an exemption from taxation of
$100,000 of the appraised value of tangible personal property the
person owns that is held or used for the production of income if
[that property has a taxable value of less than $2,500] they
annually submit a rendition statement under Section 22.01, Tax
Code.
SECTION 3. Section 22.01(j), Tax Code, is amended to read as
follows:
(j) Subsection (a) does not apply to property that is exempt
from taxation, other than property that is exempt under Section
11.145.
SECTION 4. The changes in law made by this Act apply only to
an ad valorem tax year that begins on or after the effective date of
this Act.
SECTION 5. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, to authorize the legislature to exempt from
ad valorem taxation a portion of the market value of tangible
personal property a person owns that is held or used for the
production of income is approved by the voters. If that amendment
is not approved by the voters, this Act has no effect.