House Bill No. 3064 proposes significant reforms to the taxation of tangible personal property in Texas, introducing a new section, 11.015, which exempts such property from ad valorem taxation for any tax year beginning on or after January 1, 2026. This exemption means that existing laws imposing taxes on tangible personal property for tax years starting on or after this date will no longer apply. The bill also amends various sections of the Tax Code to remove references to tangible personal property in tax exemptions for charitable organizations, religious organizations, and educational institutions, thereby clarifying that these exemptions are limited to real property.

In addition to the changes regarding tangible personal property, the bill updates the assessment and exemption processes for property taxes, particularly for properties affected by disasters. It introduces a new damage assessment rating system, modifies requirements for property rendition statements, and clarifies the procedures for filing protests regarding appraisals. The bill also addresses tax abatement agreements for real property in reinvestment zones, allowing municipalities to exempt portions of property value for a limited time based on improvements made. Overall, the bill aims to streamline the tax code, modernize property taxation practices, and ensure equitable treatment of property owners while contingent upon the approval of a constitutional amendment regarding the taxation of tangible personal property.

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