H.B. No. 3424 amends the Tax Code regarding the ad valorem taxation of dealer's heavy equipment inventory. Key changes include the requirement for owners to assign a unit property tax to each item of heavy equipment sold, leased, or rented, with specific provisions for how this tax is calculated and collected. The bill establishes that owners must deposit the total unit property tax assigned to all transactions within the preceding calendar quarter, and it mandates that the collector provide written notice of the unit property tax factor to owners by December 15 each year. Additionally, the bill introduces new subsections that clarify the responsibilities of dealers in filing tax statements and maintaining records related to their heavy equipment transactions.

The legislation also allows a person who acquires a dealer's business or assets to assume the responsibility for paying the current year's heavy equipment inventory taxes, using the same unit property tax factor as the original owner. This provision requires both parties to notify the chief appraiser and collector of their agreement, ensuring proper record adjustments. The act is set to take effect on January 1, 2026, and applies only to ad valorem taxes imposed for tax years beginning on or after this date.

Statutes affected:
Introduced: Tax Code 23.1242 (Tax Code 23)
House Committee Report: Tax Code 23.1242 (Tax Code 23)
Engrossed: Tax Code 23.1242 (Tax Code 23)
Senate Committee Report: Tax Code 23.1242 (Tax Code 23)
Enrolled: Tax Code 23.1242 (Tax Code 23)