HB5442 - Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property a person owns that is held or used for the production of income.

      By: Bernal H.B. No. 5442       A BILL TO BE ENTITLED   AN ACT   relating to an exemption from ad valorem taxation of a portion of   the appraised value of tangible personal property a person owns   that is held or used for the production of income.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 11.145, Tax Code, is   amended to read as follows:          Sec. 11.145.  INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY   [ HAVING VALUE OF LESS THAN $2,500 ].          SECTION 2.  Section 11.145(a), Tax Code, is amended to read   as follows:          (a)  A person is entitled to an exemption from taxation of   $100,000 of the appraised value of tangible personal property the   person owns that is held or used for the production of income if   [ that property has a taxable value of less than $2,500 ] they   annually submit a rendition statement under Section 22.01, Tax   Code .          SECTION 3.  Section 22.01(j), Tax Code, is amended to read as   follows:          (j)  Subsection (a) does not apply to property that is exempt   from taxation , other than property that is exempt under Section   11.145 .          SECTION 4.  The changes in law made by this Act apply only to   an ad valorem tax year that begins on or after the effective date of   this Act.          SECTION 5.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, to authorize the legislature to exempt from   ad valorem taxation a portion of the market value of tangible   personal property a person owns that is held or used for the   production of income is approved by the voters. If that amendment   is not approved by the voters, this Act has no effect.