According to the Legislative Budget Board (LBB), HB 22 is expected to have no significant fiscal impact on the state or local governments. The bill would exempt all intangible personal property from ad valorem taxation. However, under current law, only a small portion of intangible property—primarily owned by certain savings and loan corporations and insurance companies—is subject to taxation.

The Texas Comptroller of Public Accounts reports that for the tax year 2024, appraisal district data recorded only one intangible personal property record with a taxable value of $142,450. Given this minimal taxable value, any revenue loss to local governments would be negligible. Furthermore, the costs of implementing this tax exemption are not expected to be significant.

Overall, HB 22 removes an underutilized tax category without significantly affecting state or local tax revenues, making its fiscal impact minimal.

HB 22 aligns with principles of individual liberty, free enterprise, private property rights, and limited government by exempting all intangible personal property from ad valorem taxation. Currently, only a limited set of intangible assets—primarily those owned by certain financial institutions—are subject to taxation, making this bill a clarification and expansion of existing tax policy rather than a drastic shift. By eliminating the taxation of non-physical assets such as intellectual property and business goodwill, HB 22 reduces government intervention in private property ownership and simplifies tax regulations.

The bill also benefits Texas businesses and investors by ensuring that intangible assets are not subject to unpredictable or inconsistent tax assessments. This fosters a more competitive economic environment and aligns with Texas’s reputation as a pro-business state. Furthermore, the fiscal impact is minimal, as appraisal district data indicates that only one property record statewide was subject to this tax in 2024, with a taxable value of just $142,450. The Texas Comptroller and Legislative Budget Board anticipate no significant revenue loss to the state or local governments.

Given that the bill reduces unnecessary taxation, strengthens private property rights, and has a negligible fiscal impact, Texas Policy Research recommends that lawmakers vote YES on HB 22. It is a step toward a more predictable and business-friendly tax system without creating budgetary concerns for local or state governments.