business property tax break jumps to $100,000

The text as introduced · 294 words

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.