TX HB1035

Amends the Tax Code to add a definition of "net lease" as a lease where the tenant pays property taxes in addition to base rent, including double net and triple net leases

Modifies affidavit requirements for property owners claiming ad valorem tax exemptions when leasing property to child-care facilities, allowing certification that the property is subject to a net lease where the child-care facility pays the taxes directly

Provides an alternative compliance path so landlords with net lease arrangements do not need to provide a separate disclosure document about tax reductions if the tenant already bears the tax responsibility

Requires that rent must reflect tax exemption savings either through rent credits or automatically through the operation of a net lease arrangement

Applies only to exemption applications filed on or after the effective date, with immediate effect if passed by two-thirds vote or September 1, 2025 otherwise