S.B. No. 459 proposes significant changes to the taxation of tangible personal property in Texas, primarily exempting it from ad valorem taxation starting January 1, 2026. The bill introduces a new section, 11.015, which explicitly states that tangible personal property will not be taxable for any tax year beginning on or after this date. Additionally, it amends various sections of the Tax Code to remove references to tangible personal property in tax exemptions for charitable, religious, and educational organizations, indicating a shift towards focusing solely on real property for tax exemptions. The bill also allows counties to contract with other taxing units for tax assessment and collection duties, ensuring that the contracted entity is responsible for all taxes the county is required to assess and collect.

Moreover, the bill includes amendments to streamline the property tax assessment process, particularly for properties affected by disasters, by introducing new damage assessment ratings and clarifying the application process for property owners seeking exemptions. It modifies the requirements for property rendition statements and specifies that intangible property is taxable where the owner resides unless used for business purposes outside that unit. The bill also refines the definition of "lost property levy," updates procedures for property owners to file protests regarding appraisals, and introduces new definitions related to offshore spill response containment systems. Notably, it prohibits tax exemptions for properties with wind-powered energy devices near military aviation facilities, ensuring compliance with military operational requirements. Overall, the bill aims to modernize and clarify property tax regulations while ensuring they reflect current needs and circumstances.

Statutes affected:
Introduced: Tax Code 6.24, Tax Code 11.01, Tax Code 11.18, Tax Code 11.181, Tax Code 11.182, Tax Code 11.1827, Tax Code 11.184, Tax Code 11.185, Tax Code 11.20, Tax Code 11.201, Tax Code 11.21, Tax Code 11.23, Tax Code 11.231, Tax Code 11.35, Tax Code 11.42, Tax Code 11.43, Tax Code 21.06, Tax Code 22.01, Tax Code 22.02, Tax Code 22.05, Tax Code 22.07, Tax Code 22.24, Tax Code 23.014, Tax Code 23.12, Tax Code 25.25, Tax Code 26.012, Tax Code 26.09, Tax Code 31.032, Tax Code 31.033, Tax Code 41.44, Tax Code 42.01, Tax Code 42.21, Tax Code 151.356, Tax Code 312.0021, Tax Code 312.007, Tax Code 312.204, Tax Code 312.210, Tax Code 312.402, Agriculture Code 71.041, Commerce Code 93.001, Finance Code 23.1241, Education Code 49.302, Finance Code 89.003, Special District Local Laws Code 3501.004 (Finance Code 23, Tax Code 151, Education Code 49, Tax Code 42, Tax Code 312, Agriculture Code 71, Commerce Code 93, Tax Code 11, Finance Code 89, Tax Code 41, Special District Local Laws Code 3501, Tax Code 23, Tax Code 25, Tax Code 31, Tax Code 22, Tax Code 21, Tax Code 6, Tax Code 26)