HOUSTON (June 12, 2025) – Small business owners in Texas are grateful that Governor Greg Abbott has signed House Bill 9 into law, which eases the property tax burden on small businesses by raising the business personal property tax (also known as the “inventory tax”) exemption, resulting in an annual tax savings of $500 million.

The bill increases the exemption for equipment, tools, furniture, and inventory from $2,500 to $125,000. Gov. Greg Abbott made raising the business personal property tax exemption an emergency item this session. The measure now goes before voters in November.

Following the bill signing ceremony, NFIB State Director Jeff Burdett said:

“Cutting the inventory tax has long been a priority of our members here in Texas. By increasing the exemption, Main Street employers will have more of their hard-earned money to expand their operations, invest in their employees, and contribute to their communities.

“On behalf of small businesses across the state, I want to thank Governor Abbott, Rep. Morgan Meyer, and Sen. Paul Bettencourt for their efforts to deliver meaningful property tax relief this session.”