Bill > HB5442

This bill modifies the Texas Tax Code to create a new property tax exemption for income-producing tangible personal property. Specifically, the bill eliminates the current restriction that only property with a taxable value of less than $2,500 can be exempt, and instead establishes a flat $100,000 exemption for tangible personal property used to generate income. Property owners can claim this exemption by annually submitting a rendition statement, which is a formal document declaring the value of their taxable property. The bill is contingent upon voter approval of a related constitutional amendment in 2025, and if that amendment passes, the law would take effect on January 1, 2026. The changes would apply to ad valorem (property) tax years beginning on or after the effective date. This modification aims to provide tax relief for businesses and individuals who own income-producing personal property by reducing their overall property tax burden.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5442