HB399 - Relating to the exemption from ad valorem taxation of income-producing tangible personal property for a certain period of time.

      By: Bernal H.B. No. 399       A BILL TO BE ENTITLED   AN ACT   relating to the exemption from ad valorem taxation of   income-producing tangible personal property for a certain period of   time.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 11, Tax Code, is amended by adding   Section 11.144 to read as follows:           Sec.   11.144.     INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY   FOR THREE YEARS FOLLOWING INCORPORATION.   (a)   This section applies   only to small businesses as defined by Section 481.401(10),   Government Code, and a person who files a rendition statement under   Section 22.01, Tax Code.           (b)     A person is entitled to an exemption from taxation of   the tangible personal property the person owns that is held or used   for the production of income for three years following   incorporation under Title 1 or 2, Business Organizations Code.          SECTION 2.  This Act applies only to ad valorem taxes imposed   for a tax year that begins on or after the effective date of this   Act.          SECTION 3.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, authorizing the legislature to exempt   income-producing tangible personal property from ad valorem   taxation for a certain period of time is approved by the voters.  If   that amendment is not approved by the voters, this Act has no   effect.