Texas HB399 proposes a three-year exemption from ad valorem taxation for income-producing tangible personal property for small businesses.

Texas HB399 amends the Tax Code to exempt small businesses from ad valorem taxes on income-producing tangible personal property for three years following incorporation. This exemption applies only to small businesses and those filing a rendition statement under the Tax Code. The Act will take effect on January 1, 2026, contingent on voter approval of a related constitutional amendment. If the amendment is not approved, the Act will have no effect.

Texas HB399 proposes a three-year exemption from ad valorem taxation for income-producing tangible personal property for small businesses.

Texas HB399 amends the Tax Code to exempt small businesses from ad valorem taxes on income-producing tangible personal property for three years following incorporation. This exemption applies only to small businesses and those filing a rendition statement under the Tax Code. The Act will take effect on January 1, 2026, contingent on voter approval of a related constitutional amendment. If the amendment is not approved, the Act will have no effect.