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Bill

HB 399

Relating to the exemption from ad valorem taxation of income-producing tangible personal property for a certain period of time.

89th Legislature (2025) Introduced by Diego Bernal

HB 399 exempts income-producing tangible business property from Texas property taxes for a limited period, reducing tax obligations for affected businesses while potentially decreasing government revenues.

Referred to Ways & Means
#propertyinterests--personalproperty(i0600) #taxation--property-exemptions(i0793)
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Bill Summary · HB 399

Legislative bill overview

HB 399 would create a temporary exemption from property taxes (ad valorem taxation) for certain income-producing tangible personal property in Texas. The bill appears designed to provide tax relief for businesses holding specific types of physical assets that generate revenue, though the exact duration and scope of the exemption are not detailed in the basic filing information available.

Why is this important

Property tax exemptions directly affect state and local government revenue, potentially shifting tax burdens to other taxpayers or reducing funding for schools, counties, and municipalities. Businesses benefiting from such exemptions would see reduced operating costs, which could influence business investment decisions and competitiveness in Texas.

Potential points of contention

  • Revenue impact: Local governments and school districts may oppose lost tax revenue, particularly if the exemption is broad or extended
  • Equity concerns: Critics may argue that exempting certain business property while taxing others creates unfair competitive advantages or shifts burden to residential/individual taxpayers
  • Definition scope: The phrase "certain period of time" and which specific assets qualify could be contentious—overly broad definitions might significantly reduce tax base, while narrow ones may limit intended benefits

Compiled from official sources — confirm details with the bill’s official record.

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