What change and why it matters for Texas businesses
For years, some Texas businesses had to contend with complex rules regarding the taxation of intangible assets, including stocks, trademarks, and even cryptocurrency. However, the introduction of the HB 22 intangible property tax exemption has changed the landscape significantly.
House Bill 22 cleaned this up.
Beginning January 1, intangible personal property owned by most businesses is now fully exempt from property taxation. That means many companies no longer need to list or value things that exist only “on paper,” not as physical assets.
The goal?
Make the tax code simpler, clearer, and fair without blowing a hole in local budgets.
First, what is “intangible property”?
Intangible property isn’t something you can touch.
Think of assets such as:
- Company trademarks and brand names
- Patents or intellectual property
- Ownership shares or stocks
- Goodwill
- Cryptocurrency and digital assets
- Business contracts or licensing rights
In the past, some of these items were technically in the tax code, even if most appraisal districts didn’t aggressively chase them.
HB 22 removes the confusion.
What HB 22 actually does
HB 22 makes intangible property explicitly exempt from local property tax.
In practical terms, that means:
✔ Businesses don’t report intangible assets on their renditions
✔ Appraisal districts don’t waste time trying to value them
✔ The tax base focuses on real, tangible property (buildings, equipment, land, etc.)
This is more of a cleanup and clarification than a massive tax cut but it removes gray areas that caused stress for accountants, appraisers, and business owners.
Why lawmakers supported the change
Supporters of HB 22 pointed to three main benefits:
1. Simpler compliance for businesses
Businesses no longer need to guess:
“Do I report this trademark?
What about crypto? What about software licenses?”
Removing entire categories from consideration reduces paperwork and risk of mistakes.
2. Fewer appraisal disputes
Valuing intangible property is complicated and subjective.
Two appraisers could reasonably come up with wildly different numbers.
HB 22 lowers the chances of:
- disputes
- protests
- appeals
- administrative costs
3. Minimal revenue impact
Most appraisal districts weren’t heavily taxing intangible property anyway.
So repealing it:
- creates clarity
- costs very little in lost revenue
- shifts focus back to the property that is realistic to appraise
Does every business benefit?
Most will be corporations and entities that hold:
- intellectual property portfolios
- licensing agreements
- investments
- digital assets
However:
- Businesses still owe tax on tangible property like furniture, computers, machinery, and commercial buildings.
- Special or unusual situations may still require professional review.
If you’re unsure what should appear on your rendition, it’s worth getting help before filing.
What business owners should do now
Here’s a quick checklist.
✅ Update your accounting checklist
Remove intangible categories from your annual property rendition forms going forward.
✅ Keep records anyway
Even though they’re exempt, keep documentation exemptions can still be reviewed.
✅ If past returns included intangible property…
You may want to talk with a property tax professional about whether:
- Corrections are possible
- Future filings should be adjusted
- Protests make sense
The bottom line
HB 22 didn’t create flashy headlines, but it delivered something businesses appreciate:
👉 clearer rules
👉 simpler filings
👉 fewer disputes
👉 very little downside for local governments
By fully exempting intangible property, Texas made its tax code easier to navigate, especially for businesses juggling intellectual property and digital assets.
And as always, if you’re unsure how these changes affect your specific situation, TexasPVP can help review your property tax documents and make sure you’re filing correctly.
