TX SB32

Creates a $25,000 property tax exemption per location for tangible personal property held or used for income production, replacing the previous exemption that only applied to property valued under $2,500

Requires related business entities operating as a "unified business enterprise" at the same physical location to aggregate their property values when calculating the exemption, preventing multiple entities from each claiming separate $25,000 exemptions

Establishes a franchise tax credit equal to 20% of ad valorem taxes paid on business inventory, capped at $500 million total credits per year across all taxable entities, with pro-rata allocation if applications exceed the cap

Allows property owners whose income-producing personal property value is under $25,000 to elect not to render the property for taxation by filing a certification, though chief appraisers may still require rendition

Takes effect January 1, 2026, contingent on voter approval of a related constitutional amendment authorizing the legislature to exempt a portion of income-producing tangible personal property from property taxation