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A BILL TO BE ENTITLED
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AN ACT
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relating to the adjustment of the amount of the exemption from ad |
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valorem taxation of income-producing tangible personal property |
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having a value of less than a certain amount to reflect inflation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 11.145, Tax Code, is |
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amended to read as follows: |
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Sec. 11.145. CERTAIN INCOME-PRODUCING TANGIBLE PERSONAL |
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PROPERTY [HAVING VALUE OF LESS THAN $2,500]. |
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SECTION 2. Section 11.145, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (c) to read as follows: |
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(a) 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 if that property has a taxable value |
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that does not exceed the amount calculated for the applicable tax |
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year under Subsection (c) [of less than $2,500]. |
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(c) For the 2026 tax year, the exemption provided by |
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Subsection (a) applies to tangible personal property described by |
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that subsection that has a taxable value that does not exceed |
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$2,500. For each subsequent tax year, the comptroller shall adjust |
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the taxable value used to determine whether the exemption provided |
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by Subsection (a) applies to reflect inflation by using the index |
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that the comptroller considers to most accurately report changes in |
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the purchasing power of the dollar for consumers in this state. As |
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soon as practicable after making the adjustment required by this |
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subsection, the comptroller shall publish in the Texas Register and |
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post on the comptroller's Internet website the adjusted taxable |
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value to be used for purposes of this section. |
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SECTION 3. The change in law made by this Act applies only |
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to an ad valorem tax year that begins on or after January 1, 2026. |
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SECTION 4. This Act takes effect January 1, 2026. |