H.B. No. 3424 amends the Texas Tax Code to modify the ad valorem taxation process for 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, rather than monthly, and 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.

The legislation also allows a person acquiring a dealer's business or assets to assume responsibility for the current year's heavy equipment inventory taxes, using the same unit property tax factor as the original owner. This agreement must be communicated to the chief appraiser and collector, who will adjust their records accordingly. The bill specifies that it applies only to ad valorem taxes for tax years beginning on or after its effective date of January 1, 2026.

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)