Bill > HB3424

This bill modifies the Texas Tax Code's provisions for ad valorem (property) taxation of heavy equipment inventory held by dealers, primarily changing the reporting and tax payment frequency from monthly to quarterly. Key changes include requiring dealers to file quarterly tax statements instead of monthly, with statements due by the 20th day of the month following each calendar quarter, and mandating that dealers collect and remit a "unit property tax" for each piece of heavy equipment sold, leased, or rented. The bill also requires collectors to provide written notice to dealers about the unit property tax factor for each location by December 15 annually, and stipulates that dealers must maintain complete records of equipment disposition for at least four years. Additionally, the bill allows a person acquiring a dealer's business to use the same unit property tax factor as the previous owner and provides some flexibility for dealers who were not in business on January 1 of the tax year. These changes are designed to streamline the tax reporting process for heavy equipment dealers while maintaining clear documentation and tax collection requirements. The bill will apply to ad valorem taxes for tax years beginning on or after its effective date of January 1, 2026.