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Bill

HB 4360

Relating to the exemption of tangible personal property from ad valorem taxation; making conforming changes.

89th Legislature (2025) Introduced by Brent Money

HB 4360 exempts specified tangible personal property from Texas property taxation, potentially reducing revenue for schools and local governments unless offset elsewhere.

Referred to Ways & Means
#comptrollerofpublicaccounts(v2608) #construction&heavyequipment(s0351) #gulfofmexico(g4223) #oil&gas(i0545) #propertyinterests--personalproperty(i0600) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793) #transportation--railroads(i0821)
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Bill Summary · HB 4360

Legislative bill overview

HB 4360 proposes to exempt certain tangible personal property from ad valorem (property) taxation in Texas and makes corresponding adjustments to the tax code. The bill was filed in March 2025 and is currently in the Ways & Means Committee after its first reading in April.

Why is this important

Ad valorem tax exemptions directly affect state and local government revenue, as property taxes fund schools, counties, and municipalities. Changes to tangible personal property exemptions can significantly impact business tax burdens and the funding available for public services, making this a fiscally consequential proposal.

Potential points of contention

  • Revenue impact: Expanding exemptions reduces tax revenue for schools and local governments unless offset by other revenue sources or spending cuts
  • Equity concerns: Exempting certain property types may shift tax burden to other property owners or taxpayers, raising fairness questions
  • Definition specificity: The bill's reference to "conforming changes" suggests modifications to tax code language, but without specifics, unclear which property categories are affected and how broadly exemptions apply

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

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