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A BILL TO BE ENTITLED
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AN ACT
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relating to an exemption from ad valorem taxation of a percentage of |
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the appraised value of the tangible personal property a person owns |
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that consists of inventory held for sale at retail. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. PROVISIONS APPLICABLE BEGINNING WITH 2024 TAX YEAR |
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SECTION 1.01. Subchapter B, Chapter 11, Tax Code, is |
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amended by adding Section 11.36 to read as follows: |
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Sec. 11.36. RETAIL INVENTORY. (a) A person is entitled to |
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an exemption from taxation of the following percentages of the |
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appraised value of the tangible personal property the person owns |
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that consists of inventory held for sale at retail and for which the |
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person is not otherwise entitled to an exemption from taxation: |
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(1) for the 2024 tax year, 20 percent of the appraised |
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value of the inventory; and |
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(2) for the 2025 tax year, 50 percent of the appraised |
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value of the inventory. |
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(b) This section expires January 1, 2026. |
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SECTION 1.02. This article applies only to the 2024 and 2025 |
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ad valorem tax years. |
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SECTION 1.03. This article takes effect January 1, 2024, |
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but only if the constitutional amendment proposed by the 88th |
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Legislature, Regular Session, 2023, to authorize the legislature to |
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exempt from ad valorem taxation a percentage of the market value of |
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the tangible personal property a person owns that consists of |
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inventory held for sale at retail is approved by the voters. If |
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that amendment is not approved by the voters, this article has no |
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effect. |
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ARTICLE 2. PROVISIONS APPLICABLE BEGINNING WITH 2026 TAX YEAR |
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SECTION 2.01. Subchapter B, Chapter 11, Tax Code, is |
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amended by adding Section 11.36 to read as follows: |
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Sec. 11.36. RETAIL INVENTORY. A person is entitled to an |
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exemption from taxation of 75 percent of the appraised value of the |
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tangible personal property the person owns that consists of |
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inventory held for sale at retail and for which the person is not |
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otherwise entitled to an exemption from taxation. |
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SECTION 2.02. This article applies to an ad valorem tax year |
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that begins on or after January 1, 2026. |
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SECTION 2.03. This article takes effect January 1, 2026, |
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but only if the constitutional amendment proposed by the 88th |
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|
Legislature, Regular Session, 2023, to authorize the legislature to |
|
|
exempt from ad valorem taxation a percentage of the market value of |
|
|
the tangible personal property a person owns that consists of |
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|
inventory held for sale at retail is approved by the voters. If |
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|
that amendment is not approved by the voters, this article has no |
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effect. |