Bill Text: TX HB1994 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to an exemption from ad valorem taxation of a percentage of the appraised value of the tangible personal property a person owns that consists of inventory held for sale at retail.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-08 - Referred to Ways & Means [HB1994 Detail]
Download: Texas-2023-HB1994-Introduced.html
88R8740 TJB-D | ||
By: Raney | H.B. No. 1994 |
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relating to an exemption from ad valorem taxation of a percentage of | ||
the appraised value of the tangible personal property a person owns | ||
that consists of inventory held for sale at retail. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
ARTICLE 1. PROVISIONS APPLICABLE BEGINNING WITH 2024 TAX YEAR | ||
SECTION 1.01. Subchapter B, Chapter 11, Tax Code, is | ||
amended by adding Section 11.36 to read as follows: | ||
Sec. 11.36. RETAIL INVENTORY. (a) A person is entitled to | ||
an exemption from taxation of the following percentages of the | ||
appraised value of the tangible personal property the person owns | ||
that consists of inventory held for sale at retail and for which the | ||
person is not otherwise entitled to an exemption from taxation: | ||
(1) for the 2024 tax year, 20 percent of the appraised | ||
value of the inventory; and | ||
(2) for the 2025 tax year, 50 percent of the appraised | ||
value of the inventory. | ||
(b) This section expires January 1, 2026. | ||
SECTION 1.02. This article applies only to the 2024 and 2025 | ||
ad valorem tax years. | ||
SECTION 1.03. This article takes effect January 1, 2024, | ||
but only if the constitutional amendment proposed by the 88th | ||
Legislature, Regular Session, 2023, to authorize the legislature to | ||
exempt from ad valorem taxation a percentage of the market value of | ||
the tangible personal property a person owns that consists of | ||
inventory held for sale at retail is approved by the voters. If | ||
that amendment is not approved by the voters, this article has no | ||
effect. | ||
ARTICLE 2. PROVISIONS APPLICABLE BEGINNING WITH 2026 TAX YEAR | ||
SECTION 2.01. Subchapter B, Chapter 11, Tax Code, is | ||
amended by adding Section 11.36 to read as follows: | ||
Sec. 11.36. RETAIL INVENTORY. A person is entitled to an | ||
exemption from taxation of 75 percent of the appraised value of the | ||
tangible personal property the person owns that consists of | ||
inventory held for sale at retail and for which the person is not | ||
otherwise entitled to an exemption from taxation. | ||
SECTION 2.02. This article applies to an ad valorem tax year | ||
that begins on or after January 1, 2026. | ||
SECTION 2.03. This article takes effect January 1, 2026, | ||
but only if the constitutional amendment proposed by the 88th | ||
Legislature, Regular Session, 2023, to authorize the legislature to | ||
exempt from ad valorem taxation a percentage of the market value of | ||
the tangible personal property a person owns that consists of | ||
inventory held for sale at retail is approved by the voters. If | ||
that amendment is not approved by the voters, this article has no | ||
effect. |