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Bill

HB 22

Relating to the exemption from ad valorem taxation of intangible personal property.

89th Legislature (2025) Introduced by Greg Bonnen and 22 co-sponsors

HB 22 exempts intangible personal property from Texas ad valorem taxation effective January 1, 2026, eliminating tax obligations on stocks, bonds, and intellectual property while reducing local government revenue.

Effective on 1/1/26
#propertyinterests--personalproperty(i0600) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 22

Legislative bill overview

HB 22 exempts intangible personal property from ad valorem (property) taxation in Texas. The bill became effective January 1, 2026, following governor approval in May 2025. This removes the tax obligation on assets like stocks, bonds, patents, and intellectual property that were previously subject to local property tax assessments.

Why is this important

Intangible property taxation is complex to assess and often creates compliance burdens for businesses and individuals. Removing this tax simplifies the tax code and may encourage business investment and capital formation by reducing administrative costs and uncertainty around valuation. However, this represents foregone tax revenue for local governments that previously relied on these assessments.

Potential points of contention

  • Revenue impact: Local taxing entities lose tax revenue from intangible property assessments, potentially affecting school funding, county services, and municipal budgets without identified offsetting revenue sources
  • Equity concerns: Benefits primarily accrue to businesses and wealthy individuals with substantial intangible assets, while the tax burden may shift to real property owners and other taxpayers
  • Implementation complexity: Requires local appraisal districts to cease intangible property assessments and may create transition issues for existing tax rolls and pending assessments

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

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