H.B. No. 4360 proposes significant amendments to the Texas Tax Code, primarily focusing on the taxation of tangible personal property. A key provision is the introduction of a new section, 11.015, which exempts tangible personal property from ad valorem taxation for any tax year beginning on or after January 1, 2026. This exemption will render any existing laws imposing taxes on such property ineffective from that date. The bill also makes conforming changes throughout the Tax Code, including the removal of references to tangible personal property in sections related to exemptions for charitable, religious, and educational organizations, thereby clarifying that these exemptions will now focus on real property.

In addition to the exemption for tangible personal property, the bill updates various sections of the Tax Code to streamline property damage assessment ratings and exemption application processes. It introduces new definitions for damage assessment levels and clarifies that exemptions will be effective immediately upon qualification. The bill also modifies the requirements for rendering property for taxation, establishes conditions for property owners to appeal appraisal review board decisions, and updates tax abatement agreements to focus on real property improvements. Overall, H.B. No. 4360 aims to simplify the property tax framework in Texas, ensuring clarity in definitions and processes while transitioning to a new taxation model for tangible personal property starting in 2026.

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 44.004, 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 (Tax Code 11, Finance Code 23, Tax Code 21, Tax Code 42, Tax Code 31, Agriculture Code 71, Tax Code 26, Education Code 49, Tax Code 312, Tax Code 6, Tax Code 151, Commerce Code 93, Finance Code 89, Tax Code 44, Tax Code 41, Tax Code 25, Special District Local Laws Code 3501, Tax Code 23, Tax Code 22)