Relating to the exemption from ad valorem taxation of income-producing tangible personal property for a certain period of time.

HB 399 would exempt small businesses from paying property taxes on physical assets (like equipment or vehicles) used to generate income for three years after incorporation. This applies to businesses meeting specific size criteria under Texas law and covers property used for income production. The exemption would begin January 1, 2026, but only if voters approve a related constitutional amendment in 2025; otherwise, the bill has no effect. The measure directly affects qualifying small businesses by reducing their property tax burden during their initial operational years.