Business Personal Property Tax Exemption Increase
Plain Language Summary
This is a major win for small business owners. If you own business equipment, inventory, or furniture worth less than $125,000, you will no longer owe personal property taxes on it. This saves most small businesses hundreds to thousands of dollars per year.
DFW Black Community Impact
This is one of the most impactful laws for DFW Black-owned small businesses in years. The vast majority of Black-owned businesses in Dallas, Fort Worth, and surrounding cities operate with equipment and inventory well under $125,000. This exemption directly reduces their annual tax burden and frees capital for reinvestment and growth.
Official Bill Summary
Increases the business personal property tax exemption from $2,500 to $125,000 — a nearly 5,000% increase. Requires voter approval of the constitutional amendment (HJR 1). Signed into law alongside HB 346, HB 2464, and HB 5195 as part of the small business relief package.