All Roll Calls
Yes: 290 • No: 1
TexasHB 342489th Legislature Regular SessionHouse
Relating to the ad valorem taxation of certain dealer's heavy equipment inventory.
Sponsored By: Paul Bettencourt (Republican), Giovanni Capriglione
Signed by Governor
Taxation--Property-Appraisals & Appraisal DistrictsTaxation--Property-Assessment & CollectionCONSTRUCTION & HEAVY EQUIPMENTCOUNTY TAX ASSESSOR-COLLECTORSCOMPTROLLER OF PUBLIC ACCOUNTS
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 2 costs, 1 mixed.
Equipment dealers file quarterly, keep four-year records
Starting with the 2026 tax year, dealers must use the Comptroller’s required statement form every quarter, even without transactions. Statements are due to the collector by the 20th day of the month after each quarter. They must describe each item, including any unique manufacturer serial number, and report total sale proceeds or lease and rental payments. They must also show assigned taxes and explain any items with no assigned tax. Dealers must keep complete, accurate sale, lease, and rental records for at least four years after each transaction. The chief appraiser or collector can examine these records as allowed by law. Dealers not in business on January 1 must still file for quarters they operate, even when no current-year tax is owed. Those dealers cannot assign or remit this tax unless they have an agreement to pay a prior owner’s current-year inventory tax.
Heavy equipment renters pay a separate tax
For tax years beginning January 1, 2026, or later, dealers must collect a tax on heavy equipment rentals and leases. The tax equals the monthly lease or rental payment multiplied by the unit property tax factor. Dealers collect it when the customer pays and list it separately on the invoice. The source gives no factor value or dollar amount.
Equipment dealers pay quarterly, get advance notice
Starting with the 2026 tax year, dealers deposit assigned inventory tax quarterly rather than monthly. Deposits are due by the 20th day of the month after each quarter. Dealers must fund an escrow account—a fund held by the collector—to pay inventory property taxes. For covered sales, the tax equals the sale price times the tax factor; dealer sales, fleet transactions, and subsequent sales are excluded. Collectors must notify escrow account owners by December 15 of each location’s tax factor for the next year. A business or asset buyer can agree to pay the seller’s current-year inventory tax using the seller’s factor. Both parties must notify the chief appraiser and collector of the agreement so their records can be updated. That buyer need not file a declaration until the following year, but the seller remains liable for the tax.
Sponsors & Cosponsors
Sponsors
Paul Bettencourt
Republican • Senate
Giovanni Capriglione
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/23/2025
Record vote
Yes: 0 • No: 0
Senate vote • 5/23/2025
Record vote
Yes: 0 • No: 0
House vote • 5/15/2025
Record vote
Yes: 141 • No: 1
House vote • 5/14/2025
Record vote
Yes: 130 • No: 0
House vote • Unknown
Committee vote: Ways & Means
Yes: 13 • No: 0
Senate vote • Unknown
Committee vote: Local Government
Yes: 6 • No: 0
Actions Timeline
Effective on 1/1/26
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
5/26/2025HouseSigned in the Senate
5/25/2025SenateSigned in the House
5/25/2025HouseReported enrolled
5/24/2025HouseSenate passage reported
5/24/2025HouseRecord vote
5/23/2025SenatePassed
5/23/2025SenateRead 3rd time
5/23/2025SenateRecord vote
5/23/2025SenateThree day rule suspended
5/23/2025SenateVote recorded in Journal
5/23/2025SenateRead 2nd time & passed to 3rd reading
5/23/2025SenateRules suspended-Regular order of business
5/23/2025SenatePlaced on intent calendar
5/23/2025SenateCommittee report printed and distributed
5/20/2025SenateRecommended for local & uncontested calendar
5/20/2025SenateReported favorably w/o amendments
5/20/2025SenateVote taken in committee
5/19/2025SenateConsidered in public hearing
5/19/2025SenateScheduled for public hearing on . . .
5/19/2025SenateReferred to Local Government
5/16/2025SenateRead first time
5/16/2025SenateReceived from the House
5/15/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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