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Texas May Expand Tax Exemption

by Foy Mitchell, Dallas, May 2021

Businesses throughout Texas may get a bigger tax break on their personal property if proposed legislation becomes law.

 

Senate Bill 1449 raises the exemption threshold on income-producing tangible personal property from $500 to $2,500.

 

Tangible personal property is property that can be moved or touched. It commonly includes such items as business equipment and furniture. This is contrasted with intangible personal property, which includes stocks, bonds, and intellectual property like patents and copyrights.

 

SB 1449 was approved unanimously by the Senate Finance Committee and was passed by the full Senate. It now goes to the House of Representatives. If it becomes law, it will be effective January 1, 2022.