Bill > HB4360

This bill proposes a comprehensive change to Texas tax law regarding the taxation of tangible personal property, with the primary goal of eliminating ad valorem (property) taxes on tangible personal property starting January 1, 2026. The bill creates a new section in the Tax Code (Section 11.015) that explicitly states tangible personal property will not be taxable for tax years beginning on or after January 1, 2026, and any existing provisions related to taxing such property will have no effect. Throughout the bill, numerous references to tangible personal property are removed from various sections of the tax code, effectively preparing for this exemption. The bill affects multiple areas of taxation, including exemptions for charitable organizations, religious organizations, schools, and tax abatement agreements. The implementation is contingent on voters approving a constitutional amendment that would formally exempt tangible personal property from ad valorem taxation. Importantly, the bill maintains the existing tax structure for tangible personal property until January 1, 2026, ensuring a smooth transition and allowing for continued tax collection on such property before the exemption takes effect.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4360