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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 88(R)

Senate Bill 1439

Senate Author:  Springer

Effective:  Vetoed

House Sponsor:  Hefner


            State law provides a property tax exemption for income-producing tangible personal property valued at less than $2,500. Senate Bill 1439 amends the Tax Code to close a loophole that allows a business to receive multiple of these exemptions by establishing separate, related business entities, such as a limited‑liability company, all housed at one physical location. The bill does this by requiring that property be tied to a physical address for purposes of claiming this exemption and by providing for the aggregation of any property owned by a person who is considered a related business entity when determining the taxable value of property for purposes of eligibility for this exemption.

Governor's Reason for Veto: "While Senate Bill No. 1439 is important, it is simply not as important as cutting property taxes. At this time, the legislature must concentrate on delivering property tax cuts to Texans. This bill can be reconsidered at a future special session only after property tax relief is passed."