H.B. No. 9 amends the Texas Tax Code to provide 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 introduces definitions for "related business entity" and "unified business enterprise," which clarify the relationships between businesses that may share property for tax purposes. The bill also specifies that the exemption applies to each separate location within a taxing unit and allows for aggregation of property values among related entities.

Additionally, the bill outlines the requirements for property owners to render their tangible personal property for taxation, including conditions under which they may elect not to render property if its value is believed to be below the exemption threshold. It mandates that forms used for property reporting include specific checkboxes for related business entities and for those opting out of rendering property. The act is set to take effect on January 1, 2026, contingent upon the approval of a constitutional amendment by voters that would authorize such tax exemptions.

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 26, Tax Code 22, Tax Code 31, Tax Code 11)
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 26, Tax Code 22, Tax Code 31, Tax Code 11)
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 26, Tax Code 22, Tax Code 31, Tax Code 11)
Senate Committee Report: Tax Code 11.145, Tax Code 22.01, Tax Code 22.24 (Tax Code 26, Tax Code 22, Tax Code 31, Tax Code 11)
Enrolled: Tax Code 11.145, Tax Code 22.01, Tax Code 22.24 (Tax Code 26, Tax Code 22, Tax Code 31, Tax Code 11)