Bill > SB32

This bill makes significant changes to Texas property tax laws, primarily focusing on exemptions and tax credits for tangible personal property used for income production. The bill introduces a $25,000 exemption for tangible personal property held or used to generate income, replacing the previous requirement that such property have a value less than $2,500. It defines new terms like "related business entity" and "unified business enterprise" to help clarify how the exemption applies across multiple business locations. The bill requires that inventory be listed separately from other income-producing property and introduces a new provision allowing business owners to self-certify that their property value is below the exemption threshold. Additionally, the bill creates a franchise tax credit for businesses, allowing them to claim a credit of up to 20% of ad valorem taxes paid on inventory, with a statewide annual cap of $500 million. The bill's implementation is contingent on a constitutional amendment being approved by voters, and if passed, would take effect on January 1, 2026, applying to tax years beginning on or after that date. The goal appears to be providing tax relief for businesses by reducing their property tax burden and offering a credit for inventory-related taxes.

Budget and Finance, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB32