Texas 2025 - 89th Regular

Texas House Bill HB9 Compare Versions

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1	1		89R14621 TJB-D
2	2		By: Meyer, Bonnen, Hickland, H.B. No. 9
3	3		Martinez Fischer, Bernal, et al.
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5		-
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8	6		A BILL TO BE ENTITLED
9	7		AN ACT
10	8		relating to an exemption from ad valorem taxation of a portion of
11	9		the appraised value of tangible personal property a person owns
12	10		that is held or used for the production of income.
13	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	12		ARTICLE 1. PROVISIONS CONTINGENT ON CONSTITUTIONAL AMENDMENT
15	13		SECTION 1.01. The heading to Section 11.145, Tax Code, is
16	14		amended to read as follows:
17	15		Sec. 11.145. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY
18	16		[HAVING VALUE OF LESS THAN $2,500].
19	17		SECTION 1.02. Section 11.145(a), Tax Code, is amended to
20	18		read as follows:
21	19		(a) A person is entitled to an exemption from taxation of
22	20		$250,000 of the appraised value of tangible personal property the
23	21		person owns that is held or used for the production of income [if
24	22		that property has a taxable value of less than $2,500].
25	23		SECTION 1.03. Section 22.01, Tax Code, is amended by adding
26	24		Subsection (j-1) to read as follows:
27	25		(j-1) A person is required to render tangible personal
28	26		property the person owns that is held or used for the production of
29	27		income only if, in the person's opinion, the aggregate market value
30	28		of the property in at least one taxing unit that participates in the
31	29		appraisal district is greater than the amount exempted under
32	30		Section 11.145(a). A person required to render property for
33	31		taxation under this subsection must render all tangible personal
34	32		property the person owns that is held or used for the production of
35	33		income and has taxable situs in the appraisal district. This
36	34		subsection does not apply to property exempt from taxation under a
37	35		provision of law other than Section 11.145.
38	36		SECTION 1.04. The changes in law made by this article apply
39	37		only to an ad valorem tax year that begins on or after January 1,
40	38		2025.
41	39		ARTICLE 2. PROVISIONS NOT CONTINGENT ON CONSTITUTIONAL AMENDMENT
42	40		SECTION 2.01. Section 26.01, Tax Code, is amended by adding
43	41		Subsections (a-2) and (a-3) to read as follows:
44	42		(a-2) This subsection applies only to the appraisal roll for
45	43		a taxing unit for the 2025 tax year. When the chief appraiser
46	44		delivers the appraisal roll to the assessor for the taxing unit, the
47	45		chief appraiser shall include a provisional appraisal roll to
48	46		account for the changes in law attributable to the constitutional
49	47		amendment proposed by the 89th Legislature, Regular Session, 2025,
50	48		to authorize the legislature to exempt from ad valorem taxation a
51	49		portion of the market value of tangible personal property a person
52	50		owns that is held or used for the production of income, as if those
53	51		changes were in effect. If the chief appraiser delivers a
54	52		supplemental appraisal roll or correction to the appraisal roll to
55	53		the assessor for the taxing unit before that constitutional
56	54		amendment takes effect, the chief appraiser shall include
57	55		provisional appraisal roll entries to account for the changes in
58	56		law attributable to that constitutional amendment. If that
59	57		constitutional amendment takes effect:
60	58		(1) on the date that constitutional amendment takes
61	59		effect, the provisional appraisal roll, as supplemented and
62	60		corrected, becomes the appraisal roll for the taxing unit; and
63	61		(2) as soon as practicable after that date, the chief
64	62		appraiser shall correct the taxing unit's appraisal roll as
65	63		necessary to finally account for the changes in law attributable to
66	64		that constitutional amendment.
67	65		(a-3) This subsection and Subsection (a-2) expire December
68	66		31, 2026.
69	67		SECTION 2.02. Section 26.04, Tax Code, is amended by adding
70	68		Subsections (a-1) and (c-1) to read as follows:
71	69		(a-1) On receipt of the appraisal roll for the 2025 tax
72	70		year, the assessor for a taxing unit shall determine the total
73	71		taxable value of property taxable by the taxing unit and the taxable
74	72		value of new property as if the changes in law attributable to the
75	73		constitutional amendment proposed by the 89th Legislature, Regular
76	74		Session, 2025, to authorize the legislature to exempt from ad
77	75		valorem taxation a portion of the market value of tangible personal
78	76		property a person owns that is held or used for the production of
79	77		income were in effect for that tax year. This subsection expires
80	78		December 31, 2026.
81	79		(c-1) An officer or employee designated by the governing
82	80		body of a taxing unit shall calculate the no-new-revenue tax rate
83	81		and the voter-approval tax rate of the taxing unit for the 2025 tax
84	82		year as if the changes in law attributable to the constitutional
85	83		amendment proposed by the 89th Legislature, Regular Session, 2025,
86	84		to authorize the legislature to exempt from ad valorem taxation a
87	85		portion of the market value of tangible personal property a person
88	86		owns that is held or used for the production of income were in
89	87		effect for that tax year. This subsection expires December 31,
90	88		2026.
91	89		SECTION 2.03. Chapter 26, Tax Code, is amended by adding
92	90		Section 26.0401 to read as follows:
93	91		Sec. 26.0401. CALCULATION OF CERTAIN TAX RATES FOR 2025 TAX
94	92		YEAR. (a) For the purposes of calculating the no-new-revenue tax
95	93		rate, the voter-approval tax rate, and any related tax rate for the
96	94		2025 tax year, a taxing unit that calculates those rates under a
97	95		provision of law other than Section 26.04 or 26.08 shall calculate
98	96		those rates as if the changes in law attributable to the
99	97		constitutional amendment proposed by the 89th Legislature, Regular
100	98		Session, 2025, to authorize the legislature to exempt from ad
101	99		valorem taxation a portion of the market value of tangible personal
102	100		property a person owns that is held or used for the production of
103	101		income were in effect for that tax year.
104	102		(b) This section expires December 31, 2026.
105	103		SECTION 2.04. Section 26.08, Tax Code, is amended by adding
106	104		Subsection (q) to read as follows:
107	105		(q) For purposes of this section, the voter-approval tax
108	106		rate of a school district for the 2025 tax year shall be calculated
109	107		as if the changes in law attributable to the constitutional
110	108		amendment proposed by the 89th Legislature, Regular Session, 2025,
111	109		to authorize the legislature to exempt from ad valorem taxation a
112	110		portion of the market value of tangible personal property a person
113	111		owns that is held or used for the production of income were in
114	112		effect for that tax year. This subsection expires December 31,
115	113		2026.
116	114		SECTION 2.05. Section 26.09, Tax Code, is amended by adding
117	115		Subsection (c-1) to read as follows:
118	116		(c-1) The assessor for a taxing unit shall calculate the
119	117		amount of tax imposed by the taxing unit on the tangible personal
120	118		property a person owns that is held or used for the production of
121	119		income for the 2025 tax year as if the changes in law attributable
122	120		to the constitutional amendment proposed by the 89th Legislature,
123	121		Regular Session, 2025, to authorize the legislature to exempt from
124	122		ad valorem taxation a portion of the market value of tangible
125	123		personal property a person owns that is held or used for the
126	124		production of income were in effect for that tax year and also as if
127	125		the changes in law attributable to that constitutional amendment
128	126		were not in effect for that tax year. This subsection expires
129	127		December 31, 2026.
130	128		SECTION 2.06. Section 26.15, Tax Code, is amended by adding
131	129		Subsection (h) to read as follows:
132	130		(h) The assessor for a taxing unit shall correct the tax
133	131		roll for the taxing unit for the 2025 tax year to reflect the
134	132		results of the election to approve the constitutional amendment
135	133		proposed by the 89th Legislature, Regular Session, 2025, to
136	134		authorize the legislature to exempt from ad valorem taxation a
137	135		portion of the market value of tangible personal property a person
138	136		owns that is held or used for the production of income. This
139	137		subsection expires December 31, 2026.
140	138		SECTION 2.07. Section 31.01, Tax Code, is amended by adding
141	139		Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows:
142	140		(d-2) This subsection and Subsections (d-3) and (d-4) apply
143	141		only to taxes imposed by a taxing unit on the tangible personal
144	142		property a person owns that is held or used for the production of
145	143		income for the 2025 tax year and only if the changes in law
146	144		attributable to the constitutional amendment proposed by the 89th
147	145		Legislature, Regular Session, 2025, to authorize the legislature to
148	146		exempt from ad valorem taxation a portion of the market value of
149	147		tangible personal property a person owns that is held or used for
150	148		the production of income would lower the taxes imposed by the taxing
151	149		unit on the property for that tax year. The assessor for the taxing
152	150		unit shall compute the amount of taxes imposed and the other
153	151		information required by this section as if the changes in law
154	152		attributable to that constitutional amendment were in effect for
155	153		that tax year. The tax bill or the separate statement must indicate
156	154		that the bill is a provisional tax bill and include a statement in
157	155		substantially the following form:
158	156		"If the Texas Legislature had not enacted property tax relief
159	157		legislation during the 2025 legislative session, your tax bill
160	158		would have been $____ (insert amount of tax bill if the changes in
161	159		law attributable to the constitutional amendment proposed by the
162	160		89th Legislature, Regular Session, 2025, to authorize the
163	161		legislature to exempt from ad valorem taxation a portion of the
164	162		market value of tangible personal property a person owns that is
165	163		held or used for the production of income were not in effect for
166	164		that tax year). Because of action by the Texas Legislature, your
167	165		tax bill has been lowered by $____ (insert difference between
168	166		amount of tax bill if the changes in law attributable to that
169	167		constitutional amendment were not in effect for that tax year and
170	168		amount of tax bill if the changes in law attributable to that
171	169		constitutional amendment were in effect for that tax year),
172	170		resulting in a lower tax bill of $____ (insert amount of tax bill if
173	171		the changes in law attributable to that constitutional amendment
174	172		were in effect for that tax year), contingent on the approval by the
175	173		voters at an election to be held November 4, 2025, of the
176	174		constitutional amendment proposed by the 89th Legislature, Regular
177	175		Session, 2025, to authorize the legislature to exempt from ad
178	176		valorem taxation a portion of the market value of tangible personal
179	177		property a person owns that is held or used for the production of
180	178		income. If that constitutional amendment is not approved by the
181	179		voters at the election, a supplemental tax bill in the amount of
182	180		$____ (insert difference between amount of tax bill if the changes
183	181		in law attributable to that constitutional amendment were not in
184	182		effect for that tax year and amount of tax bill if the changes in law
185	183		attributable to that constitutional amendment were in effect for
186	184		that tax year) will be mailed to you."
187	185		(d-3) A tax bill prepared by the assessor for a taxing unit
188	186		as provided by Subsection (d-2) and mailed as provided by
189	187		Subsection (a) is considered to be a provisional tax bill until the
190	188		canvass of the votes on the constitutional amendment proposed by
191	189		the 89th Legislature, Regular Session, 2025, to authorize the
192	190		legislature to exempt from ad valorem taxation a portion of the
193	191		market value of tangible personal property a person owns that is
194	192		held or used for the production of income. If that constitutional
195	193		amendment is approved by the voters, the tax bill is considered to
196	194		be a final tax bill for the taxes imposed on the property for the
197	195		2025 tax year, and no additional tax bill is required to be mailed
198	196		unless another provision of this title requires the mailing of a
199	197		corrected tax bill. If that constitutional amendment is not
200	198		approved by the voters:
201	199		(1) a tax bill prepared by the assessor as provided by
202	200		Subsection (d-2) is considered to be a final tax bill but only as to
203	201		the portion of the taxes imposed on the property for the 2025 tax
204	202		year that is included in the bill;
205	203		(2) the amount of taxes imposed by each taxing unit on
206	204		the tangible personal property a person owns that is held or used
207	205		for the production of income for the 2025 tax year is calculated as
208	206		if the changes in law attributable to that constitutional amendment
209	207		were not in effect for that tax year; and
210	208		(3) except as provided by Subsections (f), (i-1), and
211	209		(k), the assessor for each taxing unit shall prepare and mail a
212	210		supplemental tax bill, by December 1 or as soon thereafter as
213	211		practicable, in an amount equal to the difference between the
214	212		amount of the tax bill if the changes in law attributable to that
215	213		constitutional amendment were not in effect for that tax year and
216	214		the amount of the tax bill if the changes in law attributable to
217	215		that constitutional amendment were in effect for that tax year.
218	216		(d-4) Except as otherwise provided by Subsection (d-3), the
219	217		provisions of this section other than Subsection (d-2) apply to a
220	218		supplemental tax bill mailed under Subsection (d-3).
221	219		(d-5) This subsection and Subsections (d-2), (d-3), and
222	220		(d-4) expire December 31, 2026.
223	221		SECTION 2.08. Section 31.02, Tax Code, is amended by adding
224	222		Subsection (a-1) to read as follows:
225	223		(a-1) Except as provided by Subsection (b) of this section
226	224		and Sections 31.03 and 31.04, taxes for which a supplemental tax
227	225		bill is mailed under Section 31.01(d-3) are due on receipt of the
228	226		tax bill and are delinquent if not paid before March 1 of the year
229	227		following the year in which imposed. This subsection expires
230	228		December 31, 2026.
231	229		ARTICLE 3. EFFECTIVE DATES
232	230		SECTION 3.01. Except as otherwise provided by this article:
233	231		(1) this Act takes effect immediately if this Act
234	232		receives a vote of two-thirds of all the members elected to each
235	233		house, as provided by Section 39, Article III, Texas Constitution;
236	234		and
237	235		(2) if this Act does not receive the vote necessary for
238	236		immediate effect, this Act takes effect September 1, 2025.
239	237		SECTION 3.02. Article 1 of this Act takes effect on the date
240	238		on which the constitutional amendment proposed by the 89th
241	239		Legislature, Regular Session, 2025, to authorize the legislature to
242	240		exempt from ad valorem taxation a portion of the market value of
243	241		tangible personal property a person owns that is held or used for
244	242		the production of income takes effect. If that amendment is not
245	243		approved by the voters, Article 1 of this Act has no effect.