H.B. No. 4360 proposes significant changes to the taxation of tangible personal property in Texas, exempting it from ad valorem taxation starting January 1, 2026. The bill amends various sections of the Tax Code, including Section 11.01, which will now refer only to "real property," effectively removing references to tangible personal property. A new section, 11.015, is introduced to explicitly state that tangible personal property will not be taxable for tax years beginning on or after the specified date, and any conflicting provisions in the Tax Code or other laws will have no effect for those tax years. Additionally, the bill makes conforming changes to existing exemptions for charitable and religious organizations, clarifying that only real property owned by these organizations is eligible for tax exemptions.

The bill also updates the assessment and exemption processes for property taxes, particularly for properties affected by disasters, introducing new damage assessment ratings and clarifying the application process for property owners seeking exemptions. It modifies requirements for property rendition statements, emphasizing accurate reporting and allowing simplified reporting for properties valued under $20,000. Furthermore, the bill introduces new definitions related to tax abatement agreements, focusing on real property and leasehold interests while removing references to tangible personal property. Overall, these changes aim to streamline property tax processes, enhance clarity in tax laws, and ensure fair treatment of property owners, especially in disaster-affected areas.

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