H.B. No. 9 proposes an amendment to the Texas Tax Code that introduces an exemption from ad valorem taxation for a portion of the appraised value of tangible personal property used for income production. The bill removes the previous threshold of $2,500 for taxable value and establishes a new exemption of $125,000 for property held or used for income generation. It defines "related business entity" and "unified business enterprise," allowing for aggregation of property values among related entities to determine tax exemptions. Additionally, the bill outlines specific conditions under which leased property and property not owned or leased by the owner can also qualify for the exemption.

The bill also modifies the requirements for property owners to render their tangible personal property for taxation. It allows individuals to refrain from rendering property if they believe its value is below the exemption threshold, provided they file a certification. Furthermore, it mandates that forms used for property reporting include options for identifying related business entities and certifying non-rendering status. The act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters. If the amendment is not approved, the act will have no effect.

Statutes affected:
Introduced: Tax Code 11.145, Tax Code 22.01, Tax Code 26.01, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02 (Tax Code 31, Tax Code 26, Tax Code 11, Tax Code 22)
House Committee Report: Tax Code 11.145, Tax Code 22.01, Tax Code 26.01, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02 (Tax Code 31, Tax Code 26, Tax Code 11, Tax Code 22)
Engrossed: Tax Code 11.145, Tax Code 22.01, Tax Code 26.01, Tax Code 26.04, Tax Code 26.08, Tax Code 26.09, Tax Code 26.15, Tax Code 31.01, Tax Code 31.02 (Tax Code 31, Tax Code 26, Tax Code 11, Tax Code 22)
Senate Committee Report: Tax Code 11.145, Tax Code 22.01, Tax Code 22.24 (Tax Code 31, Tax Code 26, Tax Code 11, Tax Code 22)
Enrolled: Tax Code 11.145, Tax Code 22.01, Tax Code 22.24 (Tax Code 31, Tax Code 26, Tax Code 11, Tax Code 22)