Relating to the ad valorem taxation of certain dealer's heavy equipment inventory.
HB 3424 modifies Texas property tax rules for heavy equipment dealers. It requires dealers to calculate a property tax on each item sold, leased, or rented by multiplying the sales price or monthly rental amount by a set tax factor. Dealers must collect this tax from buyers or renters, deposit it monthly into a special account, and report it quarterly using a state-formatted statement. This applies directly to businesses that sell or lease heavy equipment like construction or agricultural machinery.
Bill status
signed
all 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Mar 21, 2025
Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Enrolled
·
4 edits
·
Jun 20, 2025
MODERATE
This bill enrolls HB 3424, which establishes ad valorem taxation rules for dealers' heavy equipment inventory in Texas. The enrolled version includes final legislative text with signatures from the President of the Senate, Speaker of the House, and Governor, along with certification of passage by both chambers. The bill takes effect January 1, 2026, and applies to tax years beginning on or after the effective date.
Scope change
The bill's scope remains focused on ad valorem taxation of dealer's heavy equipment inventory, with no substantive changes to the policy itself - only formatting and finalization from 'Engrossed' to 'Enrolled' status.
TIMELINE
Added effective date of January 1, 2026, and applicability to tax years beginning on or after the effective date
REQUIREMENT
Added certification signatures from Senate President, House Speaker, and Governor confirming passage and approval
TECHNICAL
Removed draft formatting markers and placeholder text, replacing with final enrolled version formatting and proper bill numbering
ENFORCEMENT
Added certification statements documenting the vote counts for House passage (141-1) and Senate passage (31-0)
Floor votes · House May 15, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
48
Key actions
15
Committee
10
Jun 20, 2025
Signed into law
Signed by the Governor
executive
May 25, 2025
Upper · Passed
Signed in the Senate
upper
May 25, 2025
Lower · Passed
Signed in the House
lower
May 24, 2025
Lower · Passed
Senate passage reported
lower
May 23, 2025
Upper · Passed
Passed
upper
May 20, 2025
Upper · Passed
Committee report printed and distributed
upper
May 20, 2025
Upper · Passed
Reported favorably w/o amendments
upper
May 19, 2025
Upper · Passed
Vote taken in committee
upper
May 16, 2025
Committee
Referred to Local Government
upper
May 16, 2025
Introduced
Read first time
upper
May 15, 2025
Introduced
Received from the House
upper
May 15, 2025
Lower · Passed
Passed
lower
May 14, 2025
Lower · Passed
Passed to engrossment
lower
May 2, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 1, 2025
Lower · Passed
Committee report distributed
lower
Apr 24, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 21, 2025
Lower · Passed
Left pending in committee
lower
Apr 21, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Mar 21, 2025
Committee
Referred to Ways & Means
lower
Mar 21, 2025
Introduced
Read first time
lower
2 primary · 0 co-sponsors
Sponsors
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