18 Property Tax Bills You Haven't Planned For
The Legislature acted. Now 254 appraisal districts will interpret. Which side of that interpretation are you on?
The Bottom Line
Half of all January 1, 2026 effective date bills are property tax changes. This isn't an accident — the Legislature deliberately aligned these changes with the 2026 tax year. What looks like technical amendments to the Tax Code is actually the most comprehensive property tax reform package since the 2019 school finance overhaul.
The opportunity: Appraisal districts have discretion in how they apply new exemptions, calculate rates under new formulas, and interpret administrative requirements. Businesses and property owners that engage early with their Central Appraisal District (CAD) can shape local implementation. Those who wait will get whatever interpretation the district chooses.
The risk: SB 1951 tightens penalties for late rendition filings. If you're not already on top of your property tax compliance calendar, 2026 is not the year to slip.
What's NOT Settled
Border Security Exemption (HB 247)
Which counties qualify as “border counties”? The bill references counties along the international border, but appraisal districts will determine which properties have qualifying “border security infrastructure.” Landowners in El Paso, Webb, Cameron, and Hidalgo counties should engage their CAD now.
Who decides: Individual County Appraisal Districts
Intangible Property Definition (HB 22)
The exemption covers “intangible personal property.” But what qualifies? Goodwill? Patents? Software licenses? Cryptocurrency? Each CAD may interpret this differently. Get your classification in writing before January 1.
Who decides: County Appraisal Districts, with potential Comptroller guidance
Disaster Rate Calculations (HB 30)
When a disaster declaration affects tax rate calculations, who determines the “associated costs”? Taxing units will have new flexibility — and new opportunities for dispute. Property owners in disaster-prone areas should monitor their taxing unit budgets closely.
Who decides: Individual taxing units (cities, counties, school districts)
Heavy Equipment Inventory Valuation (HB 3424)
Dealers of heavy equipment will be taxed differently. But what counts as “heavy equipment” vs. regular inventory? Equipment dealers should document their inventory classifications before the new rules take effect.
Who decides: County Appraisal Districts
The Bills
7New or Expanded Exemptions
| Bill | Description |
|---|---|
| HB 22 | Exemption of intangible personal property |
| HB 23 | Nonprofit ag/youth education exemption (populous counties) |
| HB 247 | Border security infrastructure exemption |
| HB 1399 | Animal feed inventory exemption (retail) |
| HB 2525 | Senior housing charitable organization exemption |
| HB 2723 | Burial property exemption application changes |
| SB 467 | Fire-destroyed homestead temporary exemption |
5Tax Rate Calculation Changes
7Administration & Compliance
| Bill | Description |
|---|---|
| HB 851 | Homestead benefit reporting requirements |
| HB 1244 | Open-space land transfer appraisal continuity |
| HB 1392 | Delinquency date postponement (closed offices) |
| HB 2742 | Split-payment of ad valorem taxes |
| HB 3370 | Late timber land appraisal after owner death |
| HB 3424 | Heavy equipment dealer inventory taxation |
| SB 1951 | Rendition statement late filing penalty |
What Smart Operators Are Doing Now
Audit Your Property Classifications
Review how your property is currently classified with your CAD. Identify properties that may qualify for new exemptions under HB 22, HB 247, HB 1399, or HB 2525.
Meet With Your CAD
Schedule a meeting with your Chief Appraiser before year-end. Understand how they plan to interpret new exemptions and rate calculations. Get commitments in writing.
Update Your Rendition Calendar
SB 1951 tightens penalties for late filings. Make sure your 2026 rendition deadlines are calendared and assigned. Consider filing early to avoid last-minute surprises.
Monitor Your Taxing Units
New rate calculation rules (HB 30, SB 1023, SB 1453) give taxing units more flexibility. Watch your city, county, and school district budget hearings for signs of how they'll use it.
How We Help
JD Key Consulting helps property owners and businesses navigate Texas property tax at the policy level. We work with clients who need to influence how their appraisal district interprets new law — not just react to the assessment after it arrives.
- Pre-filing engagement with CAD leadership on exemption interpretations
- Representation at taxing unit budget hearings on rate calculations
- Strategic positioning for 90th Legislature property tax initiatives
Note: We focus on policy-level engagement, not individual property valuation appeals. For assessment protests, we can recommend qualified property tax consultants.
Don't Wait for Your Assessment
The time to shape interpretation is before January 1, not after your CAD has already decided. Let's discuss your property tax exposure.
Frequently Asked Questions
What Texas property tax changes take effect January 1, 2026?
The 89th Texas Legislature passed 18 property tax bills effective January 1, 2026. These include new exemptions for intangible personal property (HB 22), border security infrastructure (HB 247), animal feed inventory (HB 1399), and senior housing organizations (HB 2525). Rate calculation changes affect school districts, and administrative reforms include stricter rendition penalties (SB 1951).
How do Texas appraisal districts interpret new property tax exemptions?
Each of Texas's 254 Central Appraisal Districts (CADs) has discretion in how they apply new exemptions. The chief appraiser determines eligibility criteria, documentation requirements, and property classifications. Property owners can engage their CAD early to understand local interpretation before filing exemption applications.
What is the Texas property tax rendition deadline and what happens if I'm late?
Business personal property renditions are typically due April 15. SB 1951, effective January 1, 2026, tightens penalties for late filing. Property owners who miss deadlines may face financial penalties and lose the opportunity to contest valuations. The new law emphasizes timely compliance.
How does HB 22 affect intangible personal property taxation in Texas?
HB 22 creates an exemption from ad valorem taxation for intangible personal property, effective January 1, 2026. This exemption applies to tax years beginning on or after January 1, 2026. Businesses should work with their CAD to classify qualifying intangible assets and ensure proper documentation.
What is the border security infrastructure property tax exemption in Texas?
HB 247 creates an exemption for the appraised value increase attributable to border security infrastructure improvements on property in border counties. This exemption is contingent on voter approval of the associated constitutional amendment (HJR 34). Property owners in El Paso, Webb, Cameron, Hidalgo and other border counties should monitor implementation.