S.B. No. 459 proposes significant changes to the taxation of tangible personal property in Texas, specifically exempting it from ad valorem taxation starting January 1, 2026. The bill introduces new legal language stating that tangible personal property will not be taxable for any tax year beginning on or after this date, rendering existing provisions regarding its taxation ineffective for those years. Additionally, the bill amends various sections of the Tax Code to remove references to tangible personal property in the context of exemptions for charitable, religious, and educational organizations, thereby streamlining the focus on real property. The bill also includes conforming changes to ensure that contracts for tax assessment and collection require appraisal districts to assess and collect all taxes owed by the county, aligning with the goal of simplifying the tax code.

Furthermore, the bill revises the requirements for property rendition statements and updates the process for rendering property that loses its exemption during the tax year. It introduces new definitions for damage assessment levels and clarifies the appeal process for property owners regarding appraisal decisions. The bill also modifies tax abatement agreements, allowing municipalities to exempt only real property or leasehold interests and establishing conditions for exemptions related to improvements. Overall, the bill aims to enhance the efficiency and clarity of property tax assessments and exemptions while ensuring compliance with updated regulations, with the changes taking effect contingent upon the approval of a constitutional amendment proposed by the 89th Legislature.

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 (Tax Code 312, Tax Code 22, Commerce Code 93, Tax Code 21, Tax Code 25, Tax Code 26, Finance Code 89, Tax Code 31, Finance Code 23, Tax Code 11, Education Code 49, Tax Code 6, Tax Code 41, Special District Local Laws Code 3501, Tax Code 23, Agriculture Code 71, Tax Code 42, Tax Code 151)