H.B. No. 22

AN ACT

relating to the exemption from ad valorem taxation of intangible personal property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 11.02(a), Tax Code, is amended to read as follows:

(a) Intangible [Except as provided by Subsection (b) of this section, intangible] personal property is not taxable.

SECTION 2. Section 42.05, Tax Code, is amended to read as follows:

Sec. 42.05. COMPTROLLER AS PARTY. The comptroller is an opposing party in an appeal by[:

[(1) a property owner of an order of the comptroller determining a protest of the appraisal, interstate allocation, or intrastate apportionment of transportation business intangibles; or

[(2)] a county or a property owner of an order of the comptroller apportioning among the counties the appraised value of railroad rolling stock.

SECTION 3. The following provisions of the Tax Code are repealed:

(1) Sections 11.02(b) and (c);

(2) Section 21.06;

(3) Section 21.07;

(4) Section 21.08;

(5) Section 23.15; and

(6) Section 23.16.

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.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 22 was passed by the House on April 3, 2025, by the following vote: Yeas 133, Nays 10, 1 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 22 was passed by the Senate on May 9, 2025, by the following vote: Yeas 30, Nays 1.

______________________________ Secretary of the Senate APPROVED: _____________________

Date

_____________________

Governor