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A BILL TO BE ENTITLED
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AN ACT
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relating to the exemption from ad valorem taxation of |
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income-producing tangible personal property for a certain period of |
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time. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 11, Tax Code, is amended by adding |
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Section 11.144 to read as follows: |
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Sec. 11.144. INCOME-PRODUCING TANGIBLE PERSONAL PROPERTY |
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FOR THREE YEARS FOLLOWING INCORPORATION. (a) This section applies |
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only to small businesses as defined by Section 481.401(10), |
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Government Code, and a person who files a rendition statement under |
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Section 22.01, Tax Code. |
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(b) A person is entitled to an exemption from taxation of |
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the tangible personal property the person owns that is held or used |
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for the production of income for three years following |
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incorporation under Title 1 or 2, Business Organizations Code. |
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SECTION 2. This Act applies only to ad valorem taxes imposed |
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for a tax year that begins on or after the effective date of this |
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Act. |
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SECTION 3. This Act takes effect January 1, 2026, but only |
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if the constitutional amendment proposed by the 89th Legislature, |
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Regular Session, 2025, authorizing the legislature to exempt |
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income-producing tangible personal property from ad valorem |
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taxation for a certain period of time is approved by the voters. If |
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that amendment is not approved by the voters, this Act has no |
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effect. |