BillTrack50 logo
Free Signup Login
Bill

Bill > HB9

TX HB9

TX HB9
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income.

summary

Introduced
02/24/2025
In Committee
05/08/2025
Crossed Over
04/03/2025
Passed
06/12/2025
Dead
Signed/Enacted/Adopted
06/12/2025

Introduced Session

89th Legislature Regular Session

Bill Summary

AN ACT relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income.

AI Summary

This bill modifies the Texas Tax Code to create a new exemption for tangible personal property used to produce income. Specifically, the bill introduces an exemption of $125,000 from ad valorem (property) taxation for tangible personal property held or used to generate income, with several important nuances. The legislation defines new terms like "related business entity" (businesses engaging in a common enterprise) and "unified business enterprise" (a common business enterprise with multiple related entities). The exemption applies differently depending on the property's location and ownership: it can be claimed for property at a single location in a taxing unit, for leased property across a taxing unit, and for property located at sites not owned or leased by the owner. The bill also requires businesses to render (report) their property for taxation only if its aggregate market value exceeds the exemption threshold, and mandates that rendition forms include new checkboxes to identify related business entities and certify exemption eligibility. Importantly, the bill will only take effect on January 1, 2026, and is contingent upon voters approving a related constitutional amendment that authorizes this type of property tax exemption. The changes aim to provide tax relief for businesses by reducing their property tax burden on income-producing personal property.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (89)

Diego Bernal (D)*,  Paul Bettencourt (R)*,  Greg Bonnen (R)*,  Hillary Hickland (R)*,  Trey Martinez Fischer (D)*,  Morgan Meyer (R)*,  Daniel Alders (R),  Carol Alvarado (D),  Trent Ashby (R),  Jeffrey Barry (R),  Cecil Bell (R),  Keith Bell (R),  Brian Birdwell (R),  Brad Buckley (R),  Ben Bumgarner (R),  Angie Button (R),  Giovanni Capriglione (R),  David Cook (R),  Philip Cortez (D),  Tom Craddick (R),  Brandon Creighton (R),  Charles Cunningham (R),  Pat Curry (R),  Aicha Davis (D),  Jay Dean (R),  Mano DeAyala (R),  Mark Dorazio (R),  Paul Dyson (R),  Caroline Fairly (R),  James Frank (R),  Cassandra Garcia Hernandez (D),  Gary Gates (R),  Stan Gerdes (R),  Charlie Geren (R),  Ryan Guillen (R),  Roland Gutierrez (D),  Sam Harless (R),  Cody Harris (R),  Caroline Harris Davila (R),  Richard Hayes (R),  Cole Hefner (R),  Adam Hinojosa (R),  Bryan Hughes (R),  Lacey Hull (R),  Carrie Isaac (R),  Helen Kerwin (R),  Phil King (R),  Stan Kitzman (R),  Lois Kolkhorst (R),  Stan Lambert (R),  Brooks Landgraf (R),  Jeff Leach (R),  Terri Leo-Wilson (R),  Janie Lopez (R),  Ray Lopez (D),  John Lujan (R),  Shelley Luther (R),  Mando Martinez (D),  John McQueeney (R),  Will Metcalf (R),  Mayes Middleton (R),  Brent Money (R),  Matt Morgan (R),  Sergio Muñoz (D),  Candy Noble (R),  Tom Oliverson (R),  Angelia Orr (R),  Jared Patterson (R),  Dennis Paul (R),  Angela Paxton (R),  Katrina Pierson (R),  Mihaela Plesa (D),  Richard Raymond (D),  Keresa Richardson (R),  Mike Schofield (R),  Matt Shaheen (R),  Joanne Shofner (R),  Shelby Slawson (R),  Kevin Sparks (R),  David Spiller (R),  Valoree Swanson (R),  Carl Tepper (R),  Tony Tinderholt (R),  Ellen Troxclair (R),  Gary VanDeaver (R),  Cody Vasut (R),  Royce West (D),  Trey Wharton (R),  Terry Wilson (R), 

Last Action

See remarks for effective date (on 06/12/2025)
(1 Companion Bills)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...