BILL ANALYSIS

S.B. 1006

By: Bettencourt

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that the business personal property tax is unfair and unevenly applied. There are concerns that the fiscal and administrative burden of paying the tax disproportionately affects small businesses in Texas. S.B. 1006 seeks to address this issue by increasing the maximum value of income-producing tangible personal property that is exempt from property tax.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1006 amends the Tax Code to raise from $500 to $2,500 the property value under which tangible personal property owned by a person that is held or used for the production of income is eligible for a property tax exemption.    

EFFECTIVE DATE

January 1, 2020.