Bill > SB459

This bill fundamentally changes the taxation of tangible personal property in Texas, with the most significant provision being the complete exemption of tangible personal property from ad valorem (property) taxation starting January 1, 2026. The bill makes numerous conforming changes to various sections of the Texas Tax Code, removing references to tangible personal property in numerous statutes related to property tax rendition, exemptions, and appraisal. For example, the bill eliminates existing provisions about rendering tangible personal property for taxation, removes references to taxing tangible personal property in various contexts like charitable organizations and religious institutions, and updates definitions and calculations related to property taxation. The bill is contingent upon voters approving a constitutional amendment that would formally exempt tangible personal property from taxation, and if that amendment is not approved, the entire bill would have no effect. Additionally, the bill includes provisions ensuring that the existing law remains in effect for tax years and tax levies before January 1, 2026, to provide a smooth transition and maintain the legal framework for existing tax collections.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB459