Bill > HB3064

This bill proposes a comprehensive change to Texas tax law, primarily focusing on the exemption of tangible personal property from ad valorem (property) taxation, effective January 1, 2026. The bill removes references to tangible personal property throughout various sections of the Texas Tax Code, effectively eliminating the taxation of movable personal property such as equipment, machinery, and other non-real estate assets. Importantly, the bill's implementation is contingent upon voters approving a corresponding constitutional amendment during the 2025 legislative session. The changes will impact numerous areas of taxation, including exemptions for charitable organizations, religious institutions, schools, and various tax abatement agreements. The bill also makes numerous technical amendments to align existing laws with the removal of tangible personal property taxation, such as modifying rendition requirements, valuation methods, and reporting procedures. The primary goal appears to be simplifying the property tax system and potentially reducing the tax burden on businesses by eliminating taxes on movable assets. However, the bill explicitly maintains the existing tax structure for tangible personal property for taxes imposed before January 1, 2026, or those levied pursuant to specific constitutional provisions.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3064