H.B. No. 3064 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, clarifying that these exemptions will only apply to real property. The legislation also allows counties to contract out the assessment and collection of taxes to other entities, ensuring that all taxes must be handled by the contracted entity.

Furthermore, the bill includes amendments to streamline the property damage assessment process, update exemption application procedures, and clarify the appeal process for property owners regarding appraisal decisions. It introduces new definitions for damage assessment levels and modifies the requirements for property rendition statements. The bill also revises provisions related to tax abatement agreements, specifically excluding tangible personal property from such agreements and allowing municipalities to exempt only real property or leasehold interests. 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.

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