Texas’ 88th Regular Legislative Session convened on Tuesday, January 10th and is set to adjourn on Monday, May 29th. The state’s Regular Legislative Session takes place every two years and lasts for 140 days. Throughout the 2023 Session, the legislative body has sought address a wide range of issues, many of which pertain to the state’s tax structure. The House and Senate have specifically paid focus to property tax relief and making changes to the state sales and use tax. Here’s a few bills our Texas team is monitoring: 

Property Tax

HB 3355 (Landgraf) – Amends Tax Code §11.31 (TCEQ Property Tax Relief) to include property for: (1) capturing, storing, sequestering, using, reusing, gathering or transporting CO2 to prevent CO2 from entering the atmosphere; and (2) removing CO2 from the atmosphere.

HB5 (Lozano) – Relating to agreements to create jobs and to generate state and local tax revenue for this state.

Sales & Use Tax

SB1000 (West) – Reduces the state sales tax rate from 6.25% to 5.75%, effective October 1, 2023. 

HB 3622 (Lazanno)  – Repeals the sales tax on real property repair and remodeling services. Real property repair and remodeling is a taxable service in Texas. This bill would be a windfall as it pertains to the exorbitant labor cost (currently taxable in Texas) in the manufacturing space. 

HB 3894 (Shine) – Exempts battery energy storage system sold, leased, or rented to, or stored, used, or consumed by a manufacturer from sales and use tax.

HJR 168 (Turner) – Constitutional amendment to limit the rate of a state sales or use tax to 6.25% of the sales price of an item.

For questions or more information on these bills, please contact Advantous’ Texas Legislative Affairs team members, Bob Adair and Andrew Black