Bill Text: TX HB1994 | 2023-2024 | 88th Legislature | Introduced

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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

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88R8740 TJB-D
By: Raney H.B. No. 1994

A BILL TO BE ENTITLED
AN ACT
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.